NATO.L vs. MISL

Last updated Jun 4, 2026

NATO.L (HANetf Future of Defence UCITS ETF - Accumulating) and MISL (First Trust Indxx Aerospace & Defense ETF) are both exchange-traded funds - NATO.L is a Aerospace & Defense fund tracking the EQM Future of Defence Index, while MISL is a Industrials Equities fund tracking the Indxx US Aerospace & Defense Index - Benchmark TR Gross. Both are passively managed. Over the past year, NATO.L returned 20.56% vs 32.38% for MISL. At a 0.49 correlation, their price movements are largely independent. NATO.L charges 0.49%/yr vs 0.60%/yr for MISL.

Performance

NATO.L vs. MISL - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in HANetf Future of Defence UCITS ETF - Accumulating (NATO.L) and First Trust Indxx Aerospace & Defense ETF (MISL). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, NATO.L achieves a 13.05% return, which is significantly higher than MISL's 7.59% return.

NATO.L

• 1D: -0.78%
• 1M: 8.86%
• YTD: 13.05%
• 6M: 17.53%
• 1Y: 20.56%
• 3Y*: —
• 5Y*: —
• 10Y*: —

MISL

• 1D: -2.71%
• 1M: 5.48%
• YTD: 7.59%
• 6M: 13.84%
• 1Y: 32.38%
• 3Y*: 28.35%
• 5Y*: —
• 10Y*: —

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

NATO.L vs. MISL - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
NATO.L HANetf Future of Defence UCITS ETF - Accumulating	13.05%	54.83%	31.99%	16.64%
MISL First Trust Indxx Aerospace & Defense ETF	7.59%	41.24%	20.48%	9.77%

Correlation

The correlation between NATO.L and MISL is 0.60, 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	0.60
Correlation (All Time) Calculated using the full available price history since Jul 4, 2023	0.49

The correlation between NATO.L and MISL shifts across timeframes, from 0.49 (all time) to 0.60 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

NATO.L vs. MISL — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

NATO.L

NATO.L Risk / Return Rank: 28
NATO.L Sharpe Ratio Rank: 28
NATO.L Sortino Ratio Rank: 28
NATO.L Omega Ratio Rank: 26
NATO.L Calmar Ratio Rank: 32
NATO.L Martin Ratio Rank: 27

MISL

MISL Risk / Return Rank: 39
MISL Sharpe Ratio Rank: 40
MISL Sortino Ratio Rank: 41
MISL Omega Ratio Rank: 35
MISL Calmar Ratio Rank: 42
MISL Martin Ratio Rank: 35

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

NATO.L vs. MISL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for HANetf Future of Defence UCITS ETF - Accumulating (NATO.L) and First Trust Indxx Aerospace & Defense ETF (MISL). 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.

	NATO.L	MISL	Difference
Sharpe ratio Return per unit of total volatility	1.02	1.44	-0.42
Sortino ratio Return per unit of downside risk	1.53	2.10	-0.57
Omega ratio Gain probability vs. loss probability	1.18	1.24	-0.06
Calmar ratio Return relative to maximum drawdown	1.60	2.07	-0.47
Martin ratio Return relative to average drawdown	3.91	5.49	-1.58
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

NATO.L vs. MISL - Sharpe Ratio Comparison

The current NATO.L Sharpe Ratio is 1.02, which is comparable to the MISL Sharpe Ratio of 1.44. The chart below compares the historical Sharpe Ratios of NATO.L and MISL, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	NATO.L	MISL	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.02	1.44	-0.42
Sharpe Ratio (All Time) Calculated using the full available price history	1.46	1.35	+0.11

Drawdowns

NATO.L vs. MISL - Drawdown Comparison

The maximum NATO.L drawdown since its inception was -21.84%, which is greater than MISL's maximum drawdown of -17.91%. Use the drawdown chart below to compare losses from any high point for NATO.L and MISL.

Drawdown Indicators

	NATO.L	MISL	Difference
Max Drawdown Largest peak-to-trough decline	-21.84%	-17.91%	-3.93%
Max Drawdown (1Y) Largest decline over 1 year	-12.79%	-15.69%	+2.90%
Max Drawdown (3Y) Largest decline over 3 years	—	-17.91%	—
Current Drawdown Current decline from peak	-2.14%	-9.75%	+7.61%
Average Drawdown Average peak-to-trough decline	-2.63%	-3.50%	+0.87%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.25%	5.91%	-0.66%

Volatility

NATO.L vs. MISL - Volatility Comparison

The current volatility for HANetf Future of Defence UCITS ETF - Accumulating (NATO.L) is 6.19%, while First Trust Indxx Aerospace & Defense ETF (MISL) has a volatility of 8.50%. This indicates that NATO.L experiences smaller price fluctuations and is considered to be less risky than MISL based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	NATO.L	MISL	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.19%	8.50%	-2.31%
Volatility (6M) Calculated over the trailing 6-month period	15.99%	19.14%	-3.15%
Volatility (1Y) Calculated over the trailing 1-year period	20.05%	22.60%	-2.55%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	27.57%	19.14%	+8.43%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	27.57%	19.14%	+8.43%

NATO.L vs. MISL - Expense Ratio Comparison

NATO.L has a 0.49% expense ratio, which is lower than MISL's 0.60% expense ratio.

Dividends

NATO.L vs. MISL - Dividend Comparison

NATO.L has not paid dividends to shareholders, while MISL's dividend yield for the trailing twelve months is around 0.36%.

Position	TTM	2025	2024	2023	2022
MISL First Trust Indxx Aerospace & Defense ETF	0.36%	0.40%	0.74%	0.63%	0.08%
NATO.L HANetf Future of Defence UCITS ETF - Accumulating	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both NATO.L and MISL in my portfolio?

NATO.L and MISL have a correlation of 0.60, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, NATO.L or MISL?

On fees, NATO.L is cheaper at 0.49% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, NATO.L or MISL?

NATO.L is cheaper with a 0.49% expense ratio, compared with 0.60% for MISL.

What is the main difference between NATO.L and MISL?

NATO.L is categorized as Aerospace & Defense, while MISL is Industrials Equities. NATO.L tracks EQM Future of Defence Index, while MISL tracks Indxx US Aerospace & Defense Index - Benchmark TR Gross. They also come from different issuers: HANetf and First Trust. Their fees differ too: 0.49% for NATO.L and 0.60% for MISL.