JEDI vs. NATO

Last updated Aug 4, 2026

JEDI (Defiance Drone and Modern Warfare ETF) and NATO (Themes Transatlantic Defense ETF) are both Aerospace & Defense funds - JEDI tracks the BITA Drone & Modern Warfare Select Index while NATO tracks the Solactive Transatlantic Aerospace and Defense Index. Both are passively managed. Their 0.63 correlation means they have sometimes moved together and sometimes differently. JEDI charges 0.69%/yr vs 0.35%/yr for NATO.

Performance

JEDI vs. NATO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Defiance Drone and Modern Warfare ETF (JEDI) and Themes Transatlantic Defense ETF (NATO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, JEDI achieves a 4.94% return, which is significantly lower than NATO's 11.23% return.

JEDI

• 1D: 6.52%
• 1M: -11.38%
• 6M: -5.91%
• YTD: 4.94%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: —

NATO

• 1D: 2.40%
• 1M: 0.81%
• 6M: 1.90%
• YTD: 11.23%
• 1Y: 19.00%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 33.53%

*Multi-year figures are annualized to reflect compound growth (CAGR)

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
JEDI Defiance Drone and Modern Warfare ETF	$2.72M	$3.86M	$7.29M
NATO Themes Transatlantic Defense ETF	$882.24K	$720.46K	$1.15M

JEDI vs. NATO - Yearly Performance Comparison

	2026 (YTD)	2025
JEDI Defiance Drone and Modern Warfare ETF	4.94%	-3.42%
NATO Themes Transatlantic Defense ETF	11.23%	1.53%

Correlation

The correlation between JEDI and NATO is 0.63, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (All Time) Calculated using the full available price history since Sep 26, 2025	0.63

Return for Risk

JEDI vs. NATO — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

JEDI

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

NATO

NATO Risk / Return Rank: 33
NATO Sharpe Ratio Rank: 34
NATO Sortino Ratio Rank: 36
NATO Omega Ratio Rank: 33
NATO Calmar Ratio Rank: 34
NATO Martin Ratio Rank: 30

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

JEDI vs. NATO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Defiance Drone and Modern Warfare ETF (JEDI) 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	JEDI	NATO	Difference
Sharpe ratio: Return per unit of total volatility	—	0.86	—
Sortino ratio: Return per unit of downside risk	—	1.37	—
Omega ratio: Gain probability vs. loss probability	—	1.16	—
Calmar ratio: Return relative to maximum drawdown	—	1.19	—
Martin ratio: Return relative to average drawdown	—	2.67	—

Drawdowns

JEDI vs. NATO - Drawdown Comparison

The maximum JEDI drawdown since its inception was -48.21%, which is greater than NATO's maximum drawdown of -15.99%. Use the drawdown chart below to compare losses from any high point for JEDI and NATO.

Drawdown Indicators

	JEDI	NATO	Difference
Max Drawdown Largest peak-to-trough decline	-48.21%	-15.99%	-32.22%
Max Drawdown (1Y) Largest decline over 1 year	—	-15.99%	—
Current Drawdown Current decline from peak	-39.96%	-3.80%	-36.16%
Average Drawdown Average peak-to-trough decline	-14.06%	-4.16%	-9.90%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	7.13%	—

Volatility

Volatility by Period

	JEDI	NATO	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	6.62%	—
Volatility (6M) Calculated over the trailing 6-month period	—	18.63%	—
Volatility (1Y) Calculated over the trailing 1-year period	53.81%	22.11%	+31.70%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	53.81%	22.67%	+31.14%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	53.81%	22.67%	+31.14%

JEDI vs. NATO - Expense Ratio Comparison

JEDI has a 0.69% expense ratio, which is higher than NATO's 0.35% expense ratio.

Dividends

JEDI vs. NATO - Dividend Comparison

JEDI has not paid dividends to shareholders, while NATO's dividend yield for the trailing twelve months is around 0.41%.

Position	TTM	2025	2024
JEDI Defiance Drone and Modern Warfare ETF	0.00%	0.00%	0.00%
NATO Themes Transatlantic Defense ETF	0.41%	0.45%	0.08%

Frequently Asked Questions

Can I hold both JEDI and NATO in my portfolio?

JEDI and NATO have a correlation of 0.63, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, JEDI or NATO?

On fees, NATO is cheaper at 0.35% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, JEDI or NATO?

NATO is cheaper with a 0.35% expense ratio, compared with 0.69% for JEDI.

Which ETF pays a higher dividend yield, JEDI or NATO?

NATO has the higher dividend yield at 0.41%, compared with 0.00% for JEDI.

What is the main difference between JEDI and NATO?

JEDI tracks BITA Drone & Modern Warfare Select Index, while NATO tracks Solactive Transatlantic Aerospace and Defense Index. They also come from different issuers: Defiance and Themes. Their fees differ too: 0.69% for JEDI and 0.35% for NATO.