SMCF vs. NATO

Last updated Apr 1, 2026

Compare and contrast key facts about Themes US Small Cap Cash Flow Champions ETF (SMCF) and Themes Transatlantic Defense ETF (NATO).

SMCF and NATO are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. SMCF is a passively managed fund by Themes that tracks the performance of the Solactive US Small Cap Cash Flow Champions Index - Benchmark TR Gross. It was launched on Dec 12, 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 SMCF 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

SMCF vs. NATO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Themes US Small Cap Cash Flow Champions ETF (SMCF) and Themes Transatlantic Defense ETF (NATO). The values are adjusted to include any dividend payments, if applicable.

SMCF vs. NATO - Yearly Performance Comparison

	2026 (YTD)	2025	2024
SMCF Themes US Small Cap Cash Flow Champions ETF	6.42%	9.56%	-1.11%
NATO Themes Transatlantic Defense ETF	0.78%	50.95%	0.35%

Returns By Period

In the year-to-date period, SMCF achieves a 6.42% return, which is significantly higher than NATO's 0.78% return.

SMCF

• 1D: 1.46%
• 1M: -0.04%
• YTD: 6.42%
• 6M: 8.57%
• 1Y: 25.49%
• 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)

SMCF vs. NATO - Expense Ratio Comparison

SMCF has a 0.29% expense ratio, which is lower than NATO's 0.35% expense ratio.

NATO

Themes Transatlantic Defense ETF

SMCF

Themes US Small Cap Cash Flow Champions ETF

Return for Risk

SMCF vs. NATO — Risk / Return Rank

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

SMCF

SMCF Risk / Return Rank: 63
SMCF Sharpe Ratio Rank: 63
SMCF Sortino Ratio Rank: 62
SMCF Omega Ratio Rank: 64
SMCF Calmar Ratio Rank: 62
SMCF Martin Ratio Rank: 62

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.

SMCF vs. NATO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Themes US Small Cap Cash Flow Champions ETF (SMCF) 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.

	SMCF	NATO	Difference
Sharpe ratio Return per unit of total volatility	1.09	1.53	-0.44
Sortino ratio Return per unit of downside risk	1.58	2.14	-0.56
Omega ratio Gain probability vs. loss probability	1.23	1.30	-0.06
Calmar ratio Return relative to maximum drawdown	1.55	2.15	-0.60
Martin ratio Return relative to average drawdown	6.16	8.09	-1.92
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SMCF vs. NATO - Sharpe Ratio Comparison

The current SMCF Sharpe Ratio is 1.09, which is comparable to the NATO Sharpe Ratio of 1.53. The chart below compares the historical Sharpe Ratios of SMCF 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

	SMCF	NATO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.09	1.53	-0.44
Sharpe Ratio (All Time) Calculated using the full available price history	0.79	1.56	-0.76

Correlation

The correlation between SMCF and NATO is 0.46, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.

Dividends

SMCF vs. NATO - Dividend Comparison

SMCF's dividend yield for the trailing twelve months is around 3.68%, more than NATO's 0.45% yield.

	TTM	2025	2024
SMCF Themes US Small Cap Cash Flow Champions ETF	3.68%	3.91%	0.61%
NATO Themes Transatlantic Defense ETF	0.45%	0.45%	0.08%

Drawdowns

SMCF vs. NATO - Drawdown Comparison

The maximum SMCF drawdown since its inception was -28.48%, which is greater than NATO's maximum drawdown of -15.99%. Use the drawdown chart below to compare losses from any high point for SMCF and NATO.

Drawdown Indicators

	SMCF	NATO	Difference
Max Drawdown Largest peak-to-trough decline	-28.48%	-15.99%	-12.49%
Max Drawdown (1Y) Largest decline over 1 year	-16.56%	-15.99%	-0.57%
Current Drawdown Current decline from peak	-3.37%	-12.83%	+9.46%
Average Drawdown Average peak-to-trough decline	-5.61%	-2.86%	-2.75%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.17%	4.26%	-0.09%

Volatility

SMCF vs. NATO - Volatility Comparison

The current volatility for Themes US Small Cap Cash Flow Champions ETF (SMCF) is 4.02%, while Themes Transatlantic Defense ETF (NATO) has a volatility of 8.45%. This indicates that SMCF 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

	SMCF	NATO	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.02%	8.45%	-4.43%
Volatility (6M) Calculated over the trailing 6-month period	11.96%	15.04%	-3.08%
Volatility (1Y) Calculated over the trailing 1-year period	23.41%	22.63%	+0.78%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.84%	21.75%	-0.91%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.84%	21.75%	-0.91%