NATO vs. WISE

Last updated Jun 4, 2026

NATO (Themes Transatlantic Defense ETF) and WISE (Themes Generative Artificial Intelligence ETF) are both exchange-traded funds - NATO is a Aerospace & Defense fund tracking the Solactive Transatlantic Aerospace and Defense Index, while WISE is a Technology Equities fund tracking the Solactive Generative Artificial Intelligence Index - Benchmark TR Gross. Both are passively managed. Over the past year, NATO returned 13.50% vs 36.46% for WISE. At a 0.45 correlation, their price movements are largely independent. Both charge a 0.35% expense ratio.

Performance

NATO vs. WISE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Themes Transatlantic Defense ETF (NATO) and Themes Generative Artificial Intelligence ETF (WISE). 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 WISE's 11.03% return.

NATO

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

WISE

• 1D: -3.13%
• 1M: 11.81%
• YTD: 11.03%
• 6M: 7.21%
• 1Y: 36.46%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

NATO vs. WISE - Yearly Performance Comparison

	2026 (YTD)	2025	2024
NATO Themes Transatlantic Defense ETF	1.39%	50.95%	0.35%
WISE Themes Generative Artificial Intelligence ETF	11.03%	5.88%	23.81%

Correlation

The correlation between NATO and WISE is 0.48, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.48
Correlation (All Time) Calculated using the full available price history since Oct 14, 2024	0.45

Return for Risk

NATO vs. WISE — 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

WISE

WISE Risk / Return Rank: 27
WISE Sharpe Ratio Rank: 31
WISE Sortino Ratio Rank: 30
WISE Omega Ratio Rank: 29
WISE Calmar Ratio Rank: 23
WISE Martin Ratio Rank: 21

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. WISE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Themes Transatlantic Defense ETF (NATO) and Themes Generative Artificial Intelligence ETF (WISE). 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	WISE	Difference
Sharpe ratio: Return per unit of total volatility	0.65	1.14	-0.48
Sortino ratio: Return per unit of downside risk	1.07	1.64	-0.57
Omega ratio: Gain probability vs. loss probability	1.13	1.20	-0.07
Calmar ratio: Return relative to maximum drawdown	0.85	1.07	-0.23
Martin ratio: Return relative to average drawdown	2.19	2.58	-0.39
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. WISE - Sharpe Ratio Comparison

The current NATO Sharpe Ratio is 0.65, which is lower than the WISE Sharpe Ratio of 1.14. The chart below compares the historical Sharpe Ratios of NATO and WISE, 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	WISE	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.65	1.14	-0.48
Sharpe Ratio (All Time) Calculated using the full available price history	1.34	0.78	+0.55

Drawdowns

NATO vs. WISE - Drawdown Comparison

The maximum NATO drawdown since its inception was -15.99%, smaller than the maximum WISE drawdown of -39.15%. Use the drawdown chart below to compare losses from any high point for NATO and WISE.

Drawdown Indicators

	NATO	WISE	Difference
Max Drawdown Largest peak-to-trough decline	-15.99%	-39.15%	+23.16%
Max Drawdown (1Y) Largest decline over 1 year	-15.99%	-34.08%	+18.09%
Current Drawdown Current decline from peak	-12.30%	-5.48%	-6.82%
Average Drawdown Average peak-to-trough decline	-3.71%	-11.90%	+8.19%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.17%	14.15%	-7.98%

Volatility

NATO vs. WISE - Volatility Comparison

The current volatility for Themes Transatlantic Defense ETF (NATO) is 7.97%, while Themes Generative Artificial Intelligence ETF (WISE) has a volatility of 10.83%. This indicates that NATO experiences smaller price fluctuations and is considered to be less risky than WISE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	NATO	WISE	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.97%	10.83%	-2.86%
Volatility (6M) Calculated over the trailing 6-month period	17.65%	24.11%	-6.46%
Volatility (1Y) Calculated over the trailing 1-year period	20.71%	32.26%	-11.55%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.61%	33.55%	-10.94%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.61%	33.55%	-10.94%

NATO vs. WISE - Expense Ratio Comparison

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

Dividends

NATO vs. WISE - Dividend Comparison

NATO's dividend yield for the trailing twelve months is around 0.44%, less than WISE's 3.71% yield.

Position	TTM	2025	2024
NATO Themes Transatlantic Defense ETF	0.44%	0.45%	0.08%
WISE Themes Generative Artificial Intelligence ETF	3.71%	4.12%	0.00%

Frequently Asked Questions

Can I hold both NATO and WISE in my portfolio?

NATO and WISE have a correlation of 0.48, 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 WISE?

WISE has higher volatility (10.83%) compared to NATO (7.97%). In terms of maximum drawdown, NATO dropped -15.99% vs WISE's -39.15%.

Which ETF is better, NATO or WISE?

On 1-year performance, WISE leads with 36.46% vs 13.50% for NATO. Both ETFs have the same 0.35% expense ratio. On volatility, NATO has been the lower-risk option at 7.97%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, NATO or WISE?

Over the 1-year period, WISE has performed better with a 36.46% 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 WISE?

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

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

WISE has the higher dividend yield at 3.71%, compared with 0.44% for NATO.

What is the main difference between NATO and WISE?

NATO is categorized as Aerospace & Defense, while WISE is Technology Equities. NATO tracks Solactive Transatlantic Aerospace and Defense Index, while WISE tracks Solactive Generative Artificial Intelligence Index - Benchmark TR Gross.

Which has better risk-adjusted returns?

WISE currently has the higher Sharpe Ratio (1.14 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.