ITA vs. NATO
ITA (iShares U.S. Aerospace & Defense ETF) and NATO (Themes Transatlantic Defense ETF) are both Aerospace & Defense funds - ITA tracks the Dow Jones U.S. Select Aerospace & Defense Index while NATO tracks the Solactive Transatlantic Aerospace and Defense Index. Both are passively managed. Over the past year, ITA returned 26.06% vs 13.50% for NATO. Their correlation of 0.84 suggests significant overlap in exposure. ITA charges 0.38%/yr vs 0.35%/yr for NATO.
Performance
ITA vs. NATO - Performance Comparison
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Returns By Period
In the year-to-date period, ITA achieves a 4.82% return, which is significantly higher than NATO's 1.39% return.
ITA
- 1D
- -1.51%
- 1M
- 4.93%
- YTD
- 4.82%
- 6M
- 11.61%
- 1Y
- 26.06%
- 3Y*
- 26.89%
- 5Y*
- 15.93%
- 10Y*
- 14.82%
NATO
- 1D
- -1.87%
- 1M
- 2.05%
- YTD
- 1.39%
- 6M
- 7.82%
- 1Y
- 13.50%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
ITA vs. NATO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | |
|---|---|---|---|
ITA iShares U.S. Aerospace & Defense ETF | 4.82% | 48.64% | -4.63% |
NATO Themes Transatlantic Defense ETF | 1.39% | 50.95% | 0.35% |
Correlation
The correlation between ITA and NATO is 0.88, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.88 |
Correlation (All Time) Calculated using the full available price history since Oct 14, 2024 | 0.84 |
The correlation between ITA and NATO has been stable across timeframes, ranging from 0.84 to 0.88 - a consistent structural relationship.
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Return for Risk
ITA vs. NATO — Risk / Return Rank
ITA
NATO
ITA vs. NATO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Aerospace & Defense ETF (ITA) and Themes Transatlantic Defense ETF (NATO). 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.
| ITA | NATO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.60 | ||
| Sortino ratioReturn per unit of downside risk | +0.77 | ||
| Omega ratioGain probability vs. loss probability | 1.22 | 1.13 | +0.09 |
| Calmar ratioReturn relative to maximum drawdown | 1.65 | 0.85 | +0.81 |
| Martin ratioReturn relative to average drawdown | 4.49 | 2.19 | +2.29 |
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
| ITA | NATO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.26 | 0.65 | +0.60 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.80 | — | — |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.64 | — | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.51 | 1.34 | -0.83 |
Drawdowns
ITA vs. NATO - Drawdown Comparison
The maximum ITA drawdown since its inception was -59.72%, which is greater than NATO's maximum drawdown of -15.99%. Use the drawdown chart below to compare losses from any high point for ITA and NATO.
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Drawdown Indicators
| ITA | NATO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -59.72% | -15.99% | -43.73% |
Max Drawdown (1Y)Largest decline over 1 year | -15.82% | -15.99% | +0.17% |
Max Drawdown (3Y)Largest decline over 3 years | -15.82% | — | — |
Max Drawdown (5Y)Largest decline over 5 years | -18.72% | — | — |
Max Drawdown (10Y)Largest decline over 10 years | -51.00% | — | — |
Current DrawdownCurrent decline from peak | -10.19% | -12.30% | +2.11% |
Average DrawdownAverage peak-to-trough decline | -9.46% | -3.71% | -5.75% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 5.82% | 6.17% | -0.35% |
Volatility
ITA vs. NATO - Volatility Comparison
The current volatility for iShares U.S. Aerospace & Defense ETF (ITA) is 7.28%, while Themes Transatlantic Defense ETF (NATO) has a volatility of 7.97%. This indicates that ITA experiences smaller price fluctuations and is considered to be less risky than NATO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| ITA | NATO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 7.28% | 7.97% | -0.69% |
Volatility (6M)Calculated over the trailing 6-month period | 17.47% | 17.65% | -0.18% |
Volatility (1Y)Calculated over the trailing 1-year period | 20.86% | 20.71% | +0.15% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 20.02% | 22.61% | -2.59% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 23.14% | 22.61% | +0.53% |
ITA vs. NATO - Expense Ratio Comparison
ITA has a 0.38% expense ratio, which is higher than NATO's 0.35% expense ratio.
Dividends
ITA vs. NATO - Dividend Comparison
ITA's dividend yield for the trailing twelve months is around 0.48%, more than NATO's 0.44% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ITA iShares U.S. Aerospace & Defense ETF | 0.48% | 0.55% | 0.85% | 0.93% | 0.95% | 0.82% | 1.07% | 1.54% | 1.13% | 0.91% | 1.07% | 1.04% |
NATO Themes Transatlantic Defense ETF | 0.44% | 0.45% | 0.08% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
ITA and NATO have a correlation of 0.88, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
NATO has higher volatility (7.97%) compared to ITA (7.28%). In terms of maximum drawdown, ITA dropped -59.72% vs NATO's -15.99%.
On 1-year performance, ITA leads with 26.06% vs 13.50% for NATO. On fees, NATO is cheaper at 0.35% per year. On volatility, ITA has been the lower-risk option at 7.28%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 1-year period, ITA has performed better with a 26.06% return vs 13.50%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
NATO is cheaper with a 0.35% expense ratio, compared with 0.38% for ITA.
ITA has the higher dividend yield at 0.48%, compared with 0.44% for NATO.
ITA tracks Dow Jones U.S. Select Aerospace & Defense Index, while NATO tracks Solactive Transatlantic Aerospace and Defense Index. They also come from different issuers: iShares and Themes. Their fees differ too: 0.38% for ITA and 0.35% for NATO.
ITA currently has the higher Sharpe Ratio (1.26 vs 0.65), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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