NATO vs. MSFT
NATO (Themes Transatlantic Defense ETF) is Aerospace & Defense fund tracking the Solactive Transatlantic Aerospace and Defense Index, while MSFT (Microsoft Corporation) is a stock. Over the past year, NATO returned 19.28% vs -15.16% for MSFT. At a 0.27 correlation, their price movements are largely independent.
Performance
NATO vs. MSFT - Performance Comparison
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Returns By Period
In the year-to-date period, NATO achieves a 5.66% return, which is significantly higher than MSFT's -16.97% return.
NATO
- 1D
- 1.51%
- 1M
- 7.55%
- YTD
- 5.66%
- 6M
- 8.79%
- 1Y
- 19.28%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
MSFT
- 1D
- 2.31%
- 1M
- -5.05%
- YTD
- -16.97%
- 6M
- -15.43%
- 1Y
- -15.16%
- 3Y*
- 6.13%
- 5Y*
- 10.11%
- 10Y*
- 24.60%
NATO vs. MSFT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | |
|---|---|---|---|
NATO Themes Transatlantic Defense ETF | 5.66% | 50.95% | 0.51% |
MSFT Microsoft Corporation | -16.97% | 15.58% | 1.56% |
Correlation
The correlation between NATO and MSFT is 0.24, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.24 |
Correlation (All Time) Calculated using the full available price history since Oct 11, 2024 | 0.27 |
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Return for Risk
NATO vs. MSFT — Risk / Return Rank
NATO
MSFT
NATO vs. MSFT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Themes Transatlantic Defense ETF (NATO) and Microsoft Corporation (MSFT). 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.
| NATO | MSFT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.50 | ||
| Sortino ratioReturn per unit of downside risk | +2.11 | ||
| Omega ratioGain probability vs. loss probability | 1.17 | 0.91 | +0.26 |
| Calmar ratioReturn relative to maximum drawdown | 1.21 | -0.45 | +1.66 |
| Martin ratioReturn relative to average drawdown | 2.99 | -0.92 | +3.91 |
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Drawdowns
NATO vs. MSFT - Drawdown Comparison
The maximum NATO drawdown since its inception was -15.99%, smaller than the maximum MSFT drawdown of -69.38%. Use the drawdown chart below to compare losses from any high point for NATO and MSFT.
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Drawdown Indicators
| NATO | MSFT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -15.99% | -69.38% | +53.39% |
Max Drawdown (1Y)Largest decline over 1 year | -15.99% | -33.91% | +17.92% |
Max Drawdown (3Y)Largest decline over 3 years | — | -33.91% | — |
Max Drawdown (5Y)Largest decline over 5 years | — | -37.15% | — |
Max Drawdown (10Y)Largest decline over 10 years | — | -37.15% | — |
Current DrawdownCurrent decline from peak | -8.61% | -25.79% | +17.18% |
Average DrawdownAverage peak-to-trough decline | -3.84% | -21.78% | +17.94% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 6.46% | 16.56% | -10.10% |
Volatility
NATO vs. MSFT - Volatility Comparison
The current volatility for Themes Transatlantic Defense ETF (NATO) is 8.59%, while Microsoft Corporation (MSFT) has a volatility of 10.74%. This indicates that NATO experiences smaller price fluctuations and is considered to be less risky than MSFT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| NATO | MSFT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 8.59% | 10.74% | -2.15% |
Volatility (6M)Calculated over the trailing 6-month period | 18.36% | 22.41% | -4.05% |
Volatility (1Y)Calculated over the trailing 1-year period | 21.45% | 25.54% | -4.09% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 22.80% | 26.68% | -3.88% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 22.80% | 27.07% | -4.27% |
Dividends
NATO vs. MSFT - Dividend Comparison
NATO's dividend yield for the trailing twelve months is around 0.43%, less than MSFT's 0.89% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
MSFT Microsoft Corporation | 0.89% | 0.70% | 0.73% | 0.74% | 1.06% | 0.68% | 0.94% | 1.20% | 1.69% | 1.86% | 2.37% | 2.33% |
NATO Themes Transatlantic Defense ETF | 0.43% | 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
NATO and MSFT have a correlation of 0.24, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
MSFT has higher volatility (10.74%) compared to NATO (8.59%). In terms of maximum drawdown, NATO dropped -15.99% vs MSFT's -69.38%.
NATO currently has the higher Sharpe Ratio (0.90 vs -0.60), 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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