IDFN.L vs. NATO.L
IDFN.L (Invesco Defence Innovation UCITS ETF Acc) and NATO.L (HANetf Future of Defence UCITS ETF - Accumulating) are both Aerospace & Defense funds - IDFN.L tracks the S&P Kensho Global Future Defense Index while NATO.L tracks the EQM Future of Defence Index. Both are passively managed. Over the past year, IDFN.L returned 75.98% vs 20.56% for NATO.L. A 0.80 correlation means they provide meaningful diversification when combined. IDFN.L charges 0.35%/yr vs 0.49%/yr for NATO.L.
Performance
IDFN.L vs. NATO.L - Performance Comparison
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Returns By Period
In the year-to-date period, IDFN.L achieves a 34.54% return, which is significantly higher than NATO.L's 13.05% return.
IDFN.L
- 1D
- -1.85%
- 1M
- 12.42%
- YTD
- 34.54%
- 6M
- 43.45%
- 1Y
- 75.98%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
NATO.L
- 1D
- -0.78%
- 1M
- 8.86%
- YTD
- 13.05%
- 6M
- 17.53%
- 1Y
- 20.56%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
IDFN.L vs. NATO.L - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | |
|---|---|---|---|
IDFN.L Invesco Defence Innovation UCITS ETF Acc | 34.54% | 55.93% | 6.12% |
NATO.L HANetf Future of Defence UCITS ETF - Accumulating | 13.05% | 54.83% | 1.36% |
Correlation
The correlation between IDFN.L and NATO.L is 0.80, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.80 |
Correlation (All Time) Calculated using the full available price history since Oct 30, 2024 | 0.80 |
The correlation between IDFN.L and NATO.L has been stable across timeframes, ranging from 0.80 to 0.80 - a consistent structural relationship.
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Return for Risk
IDFN.L vs. NATO.L — Risk / Return Rank
IDFN.L
NATO.L
IDFN.L vs. NATO.L - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Invesco Defence Innovation UCITS ETF Acc (IDFN.L) and HANetf Future of Defence UCITS ETF - Accumulating (NATO.L). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
| IDFN.L | NATO.L | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.90 | ||
| Sortino ratioReturn per unit of downside risk | +2.25 | ||
| Omega ratioGain probability vs. loss probability | 1.45 | 1.18 | +0.27 |
| Calmar ratioReturn relative to maximum drawdown | 5.65 | 1.60 | +4.05 |
| Martin ratioReturn relative to average drawdown | 16.53 | 3.91 | +12.62 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| IDFN.L | NATO.L | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.92 | 1.02 | +1.90 |
Sharpe Ratio (All Time)Calculated using the full available price history | 2.43 | 1.46 | +0.97 |
Drawdowns
IDFN.L vs. NATO.L - Drawdown Comparison
The maximum IDFN.L drawdown since its inception was -13.71%, smaller than the maximum NATO.L drawdown of -21.84%. Use the drawdown chart below to compare losses from any high point for IDFN.L and NATO.L.
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Drawdown Indicators
| IDFN.L | NATO.L | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -13.71% | -21.84% | +8.13% |
Max Drawdown (1Y)Largest decline over 1 year | -13.39% | -12.79% | -0.60% |
Current DrawdownCurrent decline from peak | -5.01% | -2.14% | -2.87% |
Average DrawdownAverage peak-to-trough decline | -2.99% | -2.63% | -0.36% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.58% | 5.25% | -0.67% |
Volatility
IDFN.L vs. NATO.L - Volatility Comparison
Invesco Defence Innovation UCITS ETF Acc (IDFN.L) has a higher volatility of 10.26% compared to HANetf Future of Defence UCITS ETF - Accumulating (NATO.L) at 6.19%. This indicates that IDFN.L's price experiences larger fluctuations and is considered to be riskier than NATO.L based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| IDFN.L | NATO.L | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 10.26% | 6.19% | +4.07% |
Volatility (6M)Calculated over the trailing 6-month period | 21.07% | 15.99% | +5.08% |
Volatility (1Y)Calculated over the trailing 1-year period | 25.94% | 20.05% | +5.89% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 26.89% | 27.57% | -0.68% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 26.89% | 27.57% | -0.68% |
IDFN.L vs. NATO.L - Expense Ratio Comparison
IDFN.L has a 0.35% expense ratio, which is lower than NATO.L's 0.49% expense ratio.
Dividends
IDFN.L vs. NATO.L - Dividend Comparison
Neither IDFN.L nor NATO.L has paid dividends to shareholders.
Frequently Asked Questions
IDFN.L and NATO.L have a correlation of 0.80, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
On fees, IDFN.L is cheaper at 0.35% per year. The better choice depends on whether you care most about return, fees, risk, or income.
IDFN.L is cheaper with a 0.35% expense ratio, compared with 0.49% for NATO.L.
IDFN.L tracks S&P Kensho Global Future Defense Index, while NATO.L tracks EQM Future of Defence Index. They also come from different issuers: Invesco and HANetf. Their fees differ too: 0.35% for IDFN.L and 0.49% for NATO.L.
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