SHLD vs. NATO

Last updated Apr 1, 2026

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

SHLD and NATO are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. 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. 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. Both SHLD and NATO 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

SHLD vs. NATO - Performance Comparison

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

SHLD vs. NATO - Yearly Performance Comparison

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

Returns By Period

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

SHLD

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

NATO

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

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

SHLD vs. NATO - Expense Ratio Comparison

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

SHLD

Global X Defense Tech ETF

NATO

Themes Transatlantic Defense ETF

Return for Risk

SHLD vs. NATO — Risk / Return Rank

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

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

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

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.

SHLD vs. NATO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Global X Defense Tech ETF (SHLD) 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.

	SHLD	NATO	Difference
Sharpe ratio Return per unit of total volatility	2.10	1.53	+0.56
Sortino ratio Return per unit of downside risk	2.75	2.14	+0.61
Omega ratio Gain probability vs. loss probability	1.36	1.30	+0.06
Calmar ratio Return relative to maximum drawdown	3.53	2.15	+1.37
Martin ratio Return relative to average drawdown	10.28	8.09	+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.

SHLD vs. NATO - Sharpe Ratio Comparison

The current SHLD Sharpe Ratio is 2.10, which is higher than the NATO Sharpe Ratio of 1.53. The chart below compares the historical Sharpe Ratios of SHLD and NATO, 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

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

Correlation

The correlation between SHLD and NATO 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

SHLD vs. NATO - Dividend Comparison

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

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

Drawdowns

SHLD vs. NATO - Drawdown Comparison

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

Drawdown Indicators

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

Volatility

SHLD vs. NATO - Volatility Comparison

Global X Defense Tech ETF (SHLD) and Themes Transatlantic Defense ETF (NATO) have volatilities of 8.85% and 8.45%, 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

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