REIT vs. NATO

Last updated Jun 14, 2026

REIT (ALPS Active REIT ETF) and NATO (Themes Transatlantic Defense ETF) are both exchange-traded funds - REIT is a REIT fund actively managed by ALPS, while NATO is a Aerospace & Defense fund tracking the Solactive Transatlantic Aerospace and Defense Index. REIT is actively managed, while NATO is passively managed. Over the past year, REIT returned 18.15% vs 17.50% for NATO. At a 0.36 correlation, their price movements are largely independent. REIT charges 0.68%/yr vs 0.35%/yr for NATO.

Performance

REIT vs. NATO - Performance Comparison

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

Returns By Period

In the year-to-date period, REIT achieves a 17.44% return, which is significantly higher than NATO's 4.09% return.

REIT

• 1D: 0.97%
• 1M: 4.83%
• YTD: 17.44%
• 6M: 17.70%
• 1Y: 18.15%
• 3Y*: 11.38%
• 5Y*: 4.64%
• 10Y*: —

NATO

• 1D: -0.90%
• 1M: 5.95%
• YTD: 4.09%
• 6M: 7.29%
• 1Y: 17.50%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

REIT vs. NATO - Yearly Performance Comparison

	2026 (YTD)	2025	2024
REIT ALPS Active REIT ETF	17.44%	-0.55%	-2.55%
NATO Themes Transatlantic Defense ETF	4.09%	50.95%	0.51%

Correlation

The correlation between REIT and NATO is 0.31, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.31
Correlation (All Time) Calculated using the full available price history since Oct 11, 2024	0.36

Return for Risk

REIT vs. NATO — Risk / Return Rank

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

REIT

REIT Risk / Return Rank: 44
REIT Sharpe Ratio Rank: 42
REIT Sortino Ratio Rank: 40
REIT Omega Ratio Rank: 40
REIT Calmar Ratio Rank: 53
REIT Martin Ratio Rank: 46

NATO

NATO Risk / Return Rank: 26
NATO Sharpe Ratio Rank: 27
NATO Sortino Ratio Rank: 28
NATO Omega Ratio Rank: 26
NATO Calmar Ratio Rank: 27
NATO Martin Ratio Rank: 24

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.

REIT vs. NATO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for ALPS Active REIT ETF (REIT) and Themes Transatlantic Defense ETF (NATO). 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.

	REIT	NATO	Difference
Sharpe ratio: Return per unit of total volatility	1.32	0.85	+0.47
Sortino ratio: Return per unit of downside risk	1.80	1.35	+0.45
Omega ratio: Gain probability vs. loss probability	1.23	1.16	+0.07
Calmar ratio: Return relative to maximum drawdown	2.35	1.13	+1.22
Martin ratio: Return relative to average drawdown	6.81	2.81	+4.00

REIT vs. NATO - Sharpe Ratio Comparison

The current REIT Sharpe Ratio is 1.32, which is higher than the NATO Sharpe Ratio of 0.85. The chart below compares the historical Sharpe Ratios of REIT and NATO, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

REIT vs. NATO - Drawdown Comparison

The maximum REIT drawdown since its inception was -29.30%, which is greater than NATO's maximum drawdown of -15.99%. Use the drawdown chart below to compare losses from any high point for REIT and NATO.

Drawdown Indicators

	REIT	NATO	Difference
Max Drawdown Largest peak-to-trough decline	-29.30%	-15.99%	-13.31%
Max Drawdown (1Y) Largest decline over 1 year	-7.35%	-15.99%	+8.64%
Max Drawdown (3Y) Largest decline over 3 years	-18.19%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-29.30%	—	—
Current Drawdown Current decline from peak	0.00%	-9.97%	+9.97%
Average Drawdown Average peak-to-trough decline	-10.32%	-3.83%	-6.49%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.53%	6.44%	-3.91%

Volatility

REIT vs. NATO - Volatility Comparison

The current volatility for ALPS Active REIT ETF (REIT) is 4.60%, while Themes Transatlantic Defense ETF (NATO) has a volatility of 8.57%. This indicates that REIT experiences smaller price fluctuations and is considered to be less risky than NATO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	REIT	NATO	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.60%	8.57%	-3.97%
Volatility (6M) Calculated over the trailing 6-month period	9.43%	18.32%	-8.89%
Volatility (1Y) Calculated over the trailing 1-year period	13.07%	21.36%	-8.29%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.48%	22.81%	-4.33%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.37%	22.81%	-4.44%

REIT vs. NATO - Expense Ratio Comparison

REIT has a 0.68% expense ratio, which is higher than NATO's 0.35% expense ratio.

Dividends

REIT vs. NATO - Dividend Comparison

REIT's dividend yield for the trailing twelve months is around 2.69%, more than NATO's 0.43% yield.

Position	TTM	2025	2024	2023	2022	2021
NATO Themes Transatlantic Defense ETF	0.43%	0.45%	0.08%	0.00%	0.00%	0.00%
REIT ALPS Active REIT ETF	2.69%	3.20%	3.06%	3.13%	2.81%	4.71%

Frequently Asked Questions

Can I hold both REIT and NATO in my portfolio?

REIT and NATO have a correlation of 0.31, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, REIT or NATO?

NATO has higher volatility (8.57%) compared to REIT (4.60%). In terms of maximum drawdown, REIT dropped -29.30% vs NATO's -15.99%.

Which ETF is better, REIT or NATO?

On 1-year performance, REIT leads with 18.15% vs 17.50% for NATO. On fees, NATO is cheaper at 0.35% per year. On volatility, REIT has been the lower-risk option at 4.60%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, REIT or NATO?

Over the 1-year period, REIT has performed better with a 18.15% return vs 17.50%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, REIT or NATO?

NATO is cheaper with a 0.35% expense ratio, compared with 0.68% for REIT.

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

REIT has the higher dividend yield at 2.69%, compared with 0.43% for NATO.

What is the main difference between REIT and NATO?

REIT is categorized as REIT, while NATO is Aerospace & Defense. They also come from different issuers: ALPS and Themes. Their fees differ too: 0.68% for REIT and 0.35% for NATO.

Which has better risk-adjusted returns?

REIT currently has the higher Sharpe Ratio (1.32 vs 0.85), 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.