NATO vs. WDGF

Last updated Jun 4, 2026

NATO (Themes Transatlantic Defense ETF) and WDGF (WisdomTree Global Defense Fund) are both Aerospace & Defense funds - NATO tracks the Solactive Transatlantic Aerospace and Defense Index while WDGF tracks the WisdomTree Global Defense Index. Both are passively managed. Their correlation of 0.89 suggests significant overlap in exposure. NATO charges 0.35%/yr vs 0.45%/yr for WDGF.

Performance

NATO vs. WDGF - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Themes Transatlantic Defense ETF (NATO) and WisdomTree Global Defense Fund (WDGF). 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 WDGF's 3.03% return.

NATO

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

WDGF

• 1D: -1.45%
• 1M: -3.36%
• YTD: 3.03%
• 6M: 8.65%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

NATO vs. WDGF - Yearly Performance Comparison

	2026 (YTD)	2025
NATO Themes Transatlantic Defense ETF	1.39%	2.86%
WDGF WisdomTree Global Defense Fund	3.03%	-0.25%

Correlation

The correlation between NATO and WDGF is 0.89, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (All Time) Calculated using the full available price history since Sep 15, 2025	0.89

Return for Risk

NATO vs. WDGF — 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

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. WDGF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Themes Transatlantic Defense ETF (NATO) and WisdomTree Global Defense Fund (WDGF). 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	WDGF	Difference
Sharpe ratio: Return per unit of total volatility	0.65	—	—
Sortino ratio: Return per unit of downside risk	1.07	—	—
Omega ratio: Gain probability vs. loss probability	1.13	—	—
Calmar ratio: Return relative to maximum drawdown	0.85	—	—
Martin ratio: Return relative to average drawdown	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.

Sharpe Ratios by Period

	NATO	WDGF	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.65	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.34	0.17	+1.16

Drawdowns

NATO vs. WDGF - Drawdown Comparison

The maximum NATO drawdown since its inception was -15.99%, which is greater than WDGF's maximum drawdown of -14.36%. Use the drawdown chart below to compare losses from any high point for NATO and WDGF.

Drawdown Indicators

	NATO	WDGF	Difference
Max Drawdown Largest peak-to-trough decline	-15.99%	-14.36%	-1.63%
Max Drawdown (1Y) Largest decline over 1 year	-15.99%	—	—
Current Drawdown Current decline from peak	-12.30%	-12.77%	+0.47%
Average Drawdown Average peak-to-trough decline	-3.71%	-5.46%	+1.75%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.17%	—	—

Volatility

Volatility by Period

	NATO	WDGF	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.97%	—	—
Volatility (6M) Calculated over the trailing 6-month period	17.65%	—	—
Volatility (1Y) Calculated over the trailing 1-year period	20.71%	22.41%	-1.70%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.61%	22.41%	+0.20%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.61%	22.41%	+0.20%

NATO vs. WDGF - Expense Ratio Comparison

NATO has a 0.35% expense ratio, which is lower than WDGF's 0.45% expense ratio.

Dividends

NATO vs. WDGF - Dividend Comparison

NATO's dividend yield for the trailing twelve months is around 0.44%, more than WDGF's 0.05% yield.

Position	TTM	2025	2024
NATO Themes Transatlantic Defense ETF	0.44%	0.45%	0.08%
WDGF WisdomTree Global Defense Fund	0.05%	0.05%	0.00%

Frequently Asked Questions

Can I hold both NATO and WDGF in my portfolio?

NATO and WDGF have a correlation of 0.89, 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 or WDGF?

On fees, NATO is cheaper at 0.35% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, NATO or WDGF?

NATO is cheaper with a 0.35% expense ratio, compared with 0.45% for WDGF.

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

NATO has the higher dividend yield at 0.44%, compared with 0.05% for WDGF.

What is the main difference between NATO and WDGF?

NATO tracks Solactive Transatlantic Aerospace and Defense Index, while WDGF tracks WisdomTree Global Defense Index. They also come from different issuers: Themes and WisdomTree. Their fees differ too: 0.35% for NATO and 0.45% for WDGF.