MISL vs. NATO
MISL (First Trust Indxx Aerospace & Defense ETF) and NATO (Themes Transatlantic Defense ETF) are both exchange-traded funds - MISL is a Industrials Equities fund tracking the Indxx US Aerospace & Defense Index - Benchmark TR Gross, while NATO is a Aerospace & Defense fund tracking the Solactive Transatlantic Aerospace and Defense Index. Both are passively managed. Over the past year, MISL returned 32.38% vs 13.50% for NATO. A 0.80 correlation means they provide meaningful diversification when combined. MISL charges 0.60%/yr vs 0.35%/yr for NATO.
Performance
MISL vs. NATO - Performance Comparison
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Returns By Period
In the year-to-date period, MISL achieves a 7.59% return, which is significantly higher than NATO's 1.39% return.
MISL
- 1D
- -2.71%
- 1M
- 5.48%
- YTD
- 7.59%
- 6M
- 13.84%
- 1Y
- 32.38%
- 3Y*
- 28.35%
- 5Y*
- —
- 10Y*
- —
NATO
- 1D
- -1.87%
- 1M
- 2.05%
- YTD
- 1.39%
- 6M
- 7.82%
- 1Y
- 13.50%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
MISL vs. NATO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | |
|---|---|---|---|
MISL First Trust Indxx Aerospace & Defense ETF | 7.59% | 41.24% | -5.15% |
NATO Themes Transatlantic Defense ETF | 1.39% | 50.95% | 0.35% |
Correlation
The correlation between MISL and NATO is 0.84, 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 | 0.84 |
Correlation (All Time) Calculated using the full available price history since Oct 14, 2024 | 0.80 |
The correlation between MISL and NATO has been stable across timeframes, ranging from 0.80 to 0.84 - a consistent structural relationship.
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Return for Risk
MISL vs. NATO — Risk / Return Rank
MISL
NATO
MISL vs. NATO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for First Trust Indxx Aerospace & Defense ETF (MISL) 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.
| MISL | NATO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.79 | ||
| Sortino ratioReturn per unit of downside risk | +1.03 | ||
| Omega ratioGain probability vs. loss probability | 1.24 | 1.13 | +0.11 |
| Calmar ratioReturn relative to maximum drawdown | 2.07 | 0.85 | +1.23 |
| Martin ratioReturn relative to average drawdown | 5.49 | 2.19 | +3.30 |
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
| MISL | NATO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.44 | 0.65 | +0.79 |
Sharpe Ratio (All Time)Calculated using the full available price history | 1.35 | 1.34 | +0.01 |
Drawdowns
MISL vs. NATO - Drawdown Comparison
The maximum MISL drawdown since its inception was -17.91%, which is greater than NATO's maximum drawdown of -15.99%. Use the drawdown chart below to compare losses from any high point for MISL and NATO.
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Drawdown Indicators
| MISL | NATO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -17.91% | -15.99% | -1.92% |
Max Drawdown (1Y)Largest decline over 1 year | -15.69% | -15.99% | +0.30% |
Max Drawdown (3Y)Largest decline over 3 years | -17.91% | — | — |
Current DrawdownCurrent decline from peak | -9.75% | -12.30% | +2.55% |
Average DrawdownAverage peak-to-trough decline | -3.50% | -3.71% | +0.21% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 5.91% | 6.17% | -0.26% |
Volatility
MISL vs. NATO - Volatility Comparison
First Trust Indxx Aerospace & Defense ETF (MISL) has a higher volatility of 8.50% compared to Themes Transatlantic Defense ETF (NATO) at 7.97%. This indicates that MISL's price experiences larger fluctuations and is considered to be riskier 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
| MISL | NATO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 8.50% | 7.97% | +0.53% |
Volatility (6M)Calculated over the trailing 6-month period | 19.14% | 17.65% | +1.49% |
Volatility (1Y)Calculated over the trailing 1-year period | 22.60% | 20.71% | +1.89% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 19.14% | 22.61% | -3.47% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 19.14% | 22.61% | -3.47% |
MISL vs. NATO - Expense Ratio Comparison
MISL has a 0.60% expense ratio, which is higher than NATO's 0.35% expense ratio.
Dividends
MISL vs. NATO - Dividend Comparison
MISL's dividend yield for the trailing twelve months is around 0.36%, less than NATO's 0.44% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 |
|---|---|---|---|---|---|
MISL First Trust Indxx Aerospace & Defense ETF | 0.36% | 0.40% | 0.74% | 0.63% | 0.08% |
NATO Themes Transatlantic Defense ETF | 0.44% | 0.45% | 0.08% | 0.00% | 0.00% |
Frequently Asked Questions
MISL and NATO have a correlation of 0.84, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
MISL has higher volatility (8.50%) compared to NATO (7.97%). In terms of maximum drawdown, MISL dropped -17.91% vs NATO's -15.99%.
On 1-year performance, MISL leads with 32.38% vs 13.50% for NATO. On fees, NATO is cheaper at 0.35% per year. On volatility, NATO has been the lower-risk option at 7.97%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 1-year period, MISL has performed better with a 32.38% 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 0.60% for MISL.
NATO has the higher dividend yield at 0.44%, compared with 0.36% for MISL.
MISL is categorized as Industrials Equities, while NATO is Aerospace & Defense. MISL tracks Indxx US Aerospace & Defense Index - Benchmark TR Gross, while NATO tracks Solactive Transatlantic Aerospace and Defense Index. They also come from different issuers: First Trust and Themes. Their fees differ too: 0.60% for MISL and 0.35% for NATO.
MISL currently has the higher Sharpe Ratio (1.44 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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