NATO vs. GSIB

Last updated Jun 4, 2026

NATO (Themes Transatlantic Defense ETF) and GSIB (Themes Global Systemically Important Banks ETF) are both exchange-traded funds - NATO is a Aerospace & Defense fund tracking the Solactive Transatlantic Aerospace and Defense Index, while GSIB is a Financials Equities fund actively managed by Themes. NATO is passively managed, while GSIB is actively managed. Over the past year, NATO returned 13.50% vs 42.41% for GSIB. A 0.52 correlation means they provide meaningful diversification when combined. Both charge a 0.35% expense ratio.

Performance

NATO vs. GSIB - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Themes Transatlantic Defense ETF (NATO) and Themes Global Systemically Important Banks ETF (GSIB). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, NATO achieves a 1.39% return, which is significantly lower than GSIB's 9.75% return.

NATO

• 1D: -1.87%
• 1M: 2.05%
• YTD: 1.39%
• 6M: 7.82%
• 1Y: 13.50%
• 3Y*: —
• 5Y*: —
• 10Y*: —

GSIB

• 1D: -1.07%
• 1M: 5.66%
• YTD: 9.75%
• 6M: 16.02%
• 1Y: 42.41%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

NATO vs. GSIB - Yearly Performance Comparison

	2026 (YTD)	2025	2024
NATO Themes Transatlantic Defense ETF	1.39%	50.95%	0.35%
GSIB Themes Global Systemically Important Banks ETF	9.75%	61.67%	5.63%

Correlation

The correlation between NATO and GSIB is 0.51, 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	0.51
Correlation (All Time) Calculated using the full available price history since Oct 14, 2024	0.52

The correlation between NATO and GSIB has been stable across timeframes, ranging from 0.51 to 0.52 - a consistent structural relationship.

Return for Risk

NATO vs. GSIB — Risk / Return Rank

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

NATO

NATO Risk / Return Rank: 19
NATO Sharpe Ratio Rank: 19
NATO Sortino Ratio Rank: 20
NATO Omega Ratio Rank: 19
NATO Calmar Ratio Rank: 20
NATO Martin Ratio Rank: 19

GSIB

GSIB Risk / Return Rank: 68
GSIB Sharpe Ratio Rank: 75
GSIB Sortino Ratio Rank: 75
GSIB Omega Ratio Rank: 68
GSIB Calmar Ratio Rank: 61
GSIB Martin Ratio Rank: 60

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 vs. GSIB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Themes Transatlantic Defense ETF (NATO) and Themes Global Systemically Important Banks ETF (GSIB). 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	GSIB	Difference
Sharpe ratio: Return per unit of total volatility	0.65	2.47	-1.82
Sortino ratio: Return per unit of downside risk	1.07	3.43	-2.35
Omega ratio: Gain probability vs. loss probability	1.13	1.41	-0.29
Calmar ratio: Return relative to maximum drawdown	0.85	3.07	-2.22
Martin ratio: Return relative to average drawdown	2.19	10.80	-8.61
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 vs. GSIB - Sharpe Ratio Comparison

The current NATO Sharpe Ratio is 0.65, which is lower than the GSIB Sharpe Ratio of 2.47. The chart below compares the historical Sharpe Ratios of NATO and GSIB, 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	GSIB	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.65	2.47	-1.82
Sharpe Ratio (All Time) Calculated using the full available price history	1.34	2.35	-1.02

Drawdowns

NATO vs. GSIB - Drawdown Comparison

The maximum NATO drawdown since its inception was -15.99%, smaller than the maximum GSIB drawdown of -17.71%. Use the drawdown chart below to compare losses from any high point for NATO and GSIB.

Drawdown Indicators

	NATO	GSIB	Difference
Max Drawdown Largest peak-to-trough decline	-15.99%	-17.71%	+1.72%
Max Drawdown (1Y) Largest decline over 1 year	-15.99%	-13.90%	-2.09%
Current Drawdown Current decline from peak	-12.30%	-1.07%	-11.23%
Average Drawdown Average peak-to-trough decline	-3.71%	-2.06%	-1.65%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.17%	3.94%	+2.23%

Volatility

NATO vs. GSIB - Volatility Comparison

Themes Transatlantic Defense ETF (NATO) has a higher volatility of 7.97% compared to Themes Global Systemically Important Banks ETF (GSIB) at 5.26%. This indicates that NATO's price experiences larger fluctuations and is considered to be riskier than GSIB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	NATO	GSIB	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.97%	5.26%	+2.71%
Volatility (6M) Calculated over the trailing 6-month period	17.65%	13.97%	+3.68%
Volatility (1Y) Calculated over the trailing 1-year period	20.71%	17.24%	+3.47%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.61%	18.45%	+4.16%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.61%	18.45%	+4.16%

NATO vs. GSIB - Expense Ratio Comparison

Both NATO and GSIB have an expense ratio of 0.35%.

Dividends

NATO vs. GSIB - Dividend Comparison

NATO's dividend yield for the trailing twelve months is around 0.44%, less than GSIB's 1.74% yield.

Position	TTM	2025	2024
GSIB Themes Global Systemically Important Banks ETF	1.74%	1.91%	1.67%
NATO Themes Transatlantic Defense ETF	0.44%	0.45%	0.08%

Frequently Asked Questions

Can I hold both NATO and GSIB in my portfolio?

NATO and GSIB have a correlation of 0.51, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, NATO or GSIB?

NATO has higher volatility (7.97%) compared to GSIB (5.26%). In terms of maximum drawdown, NATO dropped -15.99% vs GSIB's -17.71%.

Which ETF is better, NATO or GSIB?

On 1-year performance, GSIB leads with 42.41% vs 13.50% for NATO. Both ETFs have the same 0.35% expense ratio. On volatility, GSIB has been the lower-risk option at 5.26%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, NATO or GSIB?

Over the 1-year period, GSIB has performed better with a 42.41% return vs 13.50%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, NATO or GSIB?

NATO and GSIB have the same expense ratio: 0.35% per year.

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

GSIB has the higher dividend yield at 1.74%, compared with 0.44% for NATO.

What is the main difference between NATO and GSIB?

NATO is categorized as Aerospace & Defense, while GSIB is Financials Equities.

Which has better risk-adjusted returns?

GSIB currently has the higher Sharpe Ratio (2.47 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.