NATO vs. SPDW
NATO (Themes Transatlantic Defense ETF) and SPDW (SPDR Portfolio World ex-US ETF) are both exchange-traded funds - NATO is a Aerospace & Defense fund tracking the Solactive Transatlantic Aerospace and Defense Index, while SPDW is a Foreign Large Cap Equities fund tracking the S&P Developed Ex-U.S. BMI Index. Both are passively managed. Over the past year, NATO returned 19.00% vs 30.58% for SPDW. Their 0.54 correlation means they have sometimes moved together and sometimes differently. NATO charges 0.35%/yr vs 0.04%/yr for SPDW.
Performance
NATO vs. SPDW - Performance Comparison
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Returns By Period
In the year-to-date period, NATO achieves a 11.23% return, which is significantly lower than SPDW's 14.95% return.
NATO
- 1D
- 2.40%
- 1M
- 0.81%
- 6M
- 1.90%
- YTD
- 11.23%
- 1Y
- 19.00%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
- ALL TIME*
- 33.53%
SPDW
- 1D
- 0.56%
- 1M
- 0.54%
- 6M
- 8.07%
- YTD
- 14.95%
- 1Y
- 30.58%
- 3Y*
- 19.18%
- 5Y*
- 9.60%
- 10Y*
- 10.02%
- ALL TIME*
- 5.12%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $882.24K | $720.46K | $1.15M | |
| $136.01M | $160.57M | $162.83M |
NATO vs. SPDW - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | |
|---|---|---|---|
NATO Themes Transatlantic Defense ETF | 11.23% | 50.95% | 0.51% |
SPDW SPDR Portfolio World ex-US ETF | 14.95% | 34.75% | -6.07% |
Correlation
The correlation between NATO and SPDW is 0.58, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.58 |
Correlation (All Time) Calculated using the full available price history since Oct 11, 2024 | 0.54 |
The correlation between NATO and SPDW has been stable across timeframes, ranging from 0.54 to 0.58 - a consistent structural relationship.
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Return for Risk
NATO vs. SPDW — Risk / Return Rank
NATO
SPDW
NATO vs. SPDW - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Themes Transatlantic Defense ETF (NATO) and SPDR Portfolio World ex-US ETF (SPDW). 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 | SPDW | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.94 | ||
| Sortino ratioReturn per unit of downside risk | -1.12 | ||
| Omega ratioGain probability vs. loss probability | 1.16 | 1.33 | -0.17 |
| Calmar ratioReturn relative to maximum drawdown | 1.19 | 2.66 | -1.47 |
| Martin ratioReturn relative to average drawdown | 2.67 | 10.04 | -7.37 |
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Drawdowns
NATO vs. SPDW - Drawdown Comparison
The maximum NATO drawdown since its inception was -15.99%, smaller than the maximum SPDW drawdown of -60.02%. Use the drawdown chart below to compare losses from any high point for NATO and SPDW.
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Drawdown Indicators
| NATO | SPDW | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -15.99% | -60.02% | +44.03% |
Max Drawdown (1Y)Largest decline over 1 year | -15.99% | -11.55% | -4.44% |
Max Drawdown (3Y)Largest decline over 3 years | — | -13.53% | — |
Max Drawdown (5Y)Largest decline over 5 years | — | -30.21% | — |
Max Drawdown (10Y)Largest decline over 10 years | — | -34.98% | — |
Current DrawdownCurrent decline from peak | -3.80% | -1.56% | -2.24% |
Average DrawdownAverage peak-to-trough decline | -4.16% | -12.82% | +8.66% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 7.13% | 3.05% | +4.08% |
Volatility
NATO vs. SPDW - Volatility Comparison
Themes Transatlantic Defense ETF (NATO) has a higher volatility of 6.62% compared to SPDR Portfolio World ex-US ETF (SPDW) at 5.25%. This indicates that NATO's price experiences larger fluctuations and is considered to be riskier than SPDW based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| NATO | SPDW | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 6.62% | 5.25% | +1.37% |
Volatility (6M)Calculated over the trailing 6-month period | 18.63% | 15.15% | +3.48% |
Volatility (1Y)Calculated over the trailing 1-year period | 22.11% | 17.09% | +5.02% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 22.67% | 16.78% | +5.89% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 22.67% | 17.13% | +5.54% |
NATO vs. SPDW - Expense Ratio Comparison
NATO has a 0.35% expense ratio, which is higher than SPDW's 0.04% expense ratio.
Dividends
NATO vs. SPDW - Dividend Comparison
NATO's dividend yield for the trailing twelve months is around 0.41%, less than SPDW's 3.01% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
NATO Themes Transatlantic Defense ETF | 0.41% | 0.45% | 0.08% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
SPDW SPDR Portfolio World ex-US ETF | 3.01% | 3.30% | 3.19% | 2.75% | 3.12% | 3.04% | 1.87% | 3.13% | 3.08% | 1.86% | 3.11% | 2.78% |
Frequently Asked Questions
NATO and SPDW have a correlation of 0.58, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
NATO has higher volatility (6.62%) compared to SPDW (5.25%). In terms of maximum drawdown, NATO dropped -15.99% vs SPDW's -60.02%.
On 1-year performance, SPDW leads with 30.58% vs 19.00% for NATO. On fees, SPDW is cheaper at 0.04% per year. On volatility, SPDW has been the lower-risk option at 5.25%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 1-year period, SPDW has performed better with a 30.58% return vs 19.00%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
SPDW is cheaper with a 0.04% expense ratio, compared with 0.35% for NATO.
SPDW has the higher dividend yield at 3.01%, compared with 0.41% for NATO.
NATO is categorized as Aerospace & Defense, while SPDW is Foreign Large Cap Equities. NATO tracks Solactive Transatlantic Aerospace and Defense Index, while SPDW tracks S&P Developed Ex-U.S. BMI Index. They also come from different issuers: Themes and State Street. Their fees differ too: 0.35% for NATO and 0.04% for SPDW.
SPDW currently has the higher Sharpe Ratio (1.80 vs 0.86), 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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