NATO vs. SHLD

Last updated Apr 1, 2026

Compare and contrast key facts about Themes Transatlantic Defense ETF (NATO) and Global X Defense Tech ETF (SHLD).

NATO and SHLD are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. NATO is a passively managed fund by Themes that tracks the performance of the Solactive Transatlantic Aerospace and Defense Index. It was launched on Oct 10, 2024. SHLD is a passively managed fund by Global X that tracks the performance of the Global X Defense Tech Index - Benchmark TR Net. It was launched on Sep 11, 2023. Both NATO and SHLD are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.

Performance

NATO vs. SHLD - Performance Comparison

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

NATO vs. SHLD - Yearly Performance Comparison

	2026 (YTD)	2025	2024
NATO Themes Transatlantic Defense ETF	0.78%	50.95%	0.35%
SHLD Global X Defense Tech ETF	9.34%	74.16%	-1.76%

Returns By Period

In the year-to-date period, NATO achieves a 0.78% return, which is significantly lower than SHLD's 9.34% return.

NATO

• 1D: 3.75%
• 1M: -11.24%
• YTD: 0.78%
• 6M: -1.05%
• 1Y: 34.54%
• 3Y*: —
• 5Y*: —
• 10Y*: —

SHLD

• 1D: 3.72%
• 1M: -5.37%
• YTD: 9.34%
• 6M: 1.22%
• 1Y: 53.03%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

NATO vs. SHLD - Expense Ratio Comparison

NATO has a 0.35% expense ratio, which is lower than SHLD's 0.50% expense ratio.

SHLD

Global X Defense Tech ETF

NATO

Themes Transatlantic Defense ETF

Return for Risk

NATO vs. SHLD — Risk / Return Rank

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

NATO

NATO Risk / Return Rank: 81
NATO Sharpe Ratio Rank: 82
NATO Sortino Ratio Rank: 84
NATO Omega Ratio Rank: 80
NATO Calmar Ratio Rank: 81
NATO Martin Ratio Rank: 79

SHLD

SHLD Risk / Return Rank: 92
SHLD Sharpe Ratio Rank: 93
SHLD Sortino Ratio Rank: 93
SHLD Omega Ratio Rank: 90
SHLD Calmar Ratio Rank: 94
SHLD Martin Ratio Rank: 88

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. SHLD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Themes Transatlantic Defense ETF (NATO) and Global X Defense Tech ETF (SHLD). 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	SHLD	Difference
Sharpe ratio Return per unit of total volatility	1.53	2.10	-0.56
Sortino ratio Return per unit of downside risk	2.14	2.75	-0.61
Omega ratio Gain probability vs. loss probability	1.30	1.36	-0.06
Calmar ratio Return relative to maximum drawdown	2.15	3.53	-1.37
Martin ratio Return relative to average drawdown	8.09	10.28	-2.19
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. SHLD - Sharpe Ratio Comparison

The current NATO Sharpe Ratio is 1.53, which is comparable to the SHLD Sharpe Ratio of 2.10. The chart below compares the historical Sharpe Ratios of NATO and SHLD, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.

Sharpe Ratios by Period

	NATO	SHLD	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.53	2.10	-0.56
Sharpe Ratio (All Time) Calculated using the full available price history	1.56	2.53	-0.97

Correlation

The correlation between NATO and SHLD is 0.79, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.

Dividends

NATO vs. SHLD - Dividend Comparison

NATO's dividend yield for the trailing twelve months is around 0.45%, less than SHLD's 0.50% yield.

	TTM	2025	2024	2023
NATO Themes Transatlantic Defense ETF	0.45%	0.45%	0.08%	0.00%
SHLD Global X Defense Tech ETF	0.50%	0.55%	0.53%	0.26%

Drawdowns

NATO vs. SHLD - Drawdown Comparison

The maximum NATO drawdown since its inception was -15.99%, which is greater than SHLD's maximum drawdown of -15.06%. Use the drawdown chart below to compare losses from any high point for NATO and SHLD.

Drawdown Indicators

	NATO	SHLD	Difference
Max Drawdown Largest peak-to-trough decline	-15.99%	-15.06%	-0.93%
Max Drawdown (1Y) Largest decline over 1 year	-15.99%	-15.06%	-0.93%
Current Drawdown Current decline from peak	-12.83%	-9.20%	-3.63%
Average Drawdown Average peak-to-trough decline	-2.86%	-2.57%	-0.29%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.26%	5.17%	-0.91%

Volatility

NATO vs. SHLD - Volatility Comparison

Themes Transatlantic Defense ETF (NATO) and Global X Defense Tech ETF (SHLD) have volatilities of 8.45% and 8.85%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	NATO	SHLD	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.45%	8.85%	-0.40%
Volatility (6M) Calculated over the trailing 6-month period	15.04%	18.37%	-3.33%
Volatility (1Y) Calculated over the trailing 1-year period	22.63%	25.40%	-2.77%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.75%	20.70%	+1.05%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.75%	20.70%	+1.05%