USNZ vs. XDEF

Last updated Jun 24, 2026

USNZ (Xtrackers Net Zero Pathway Paris Aligned US Equity ETF) and XDEF (Xtrackers Europe Defense Technologies ETF) are both exchange-traded funds - USNZ is a Large Cap Blend Equities fund tracking the Solactive ISS ESG United States Net Zero Pathway Enhanced Index - Benchmark TR Net, while XDEF is a Aerospace & Defense fund tracking the STOXX Europe Total Market Defence, Space and Cybersecurity Innovation 50-25 Index. Both are passively managed. A 0.52 correlation means they provide meaningful diversification when combined. USNZ charges 0.10%/yr vs 0.35%/yr for XDEF.

Performance

USNZ vs. XDEF - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Xtrackers Net Zero Pathway Paris Aligned US Equity ETF (USNZ) and Xtrackers Europe Defense Technologies ETF (XDEF). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

USNZ

• 1D: -1.42%
• 1M: -1.23%
• YTD: 7.73%
• 6M: 6.91%
• 1Y: 24.01%
• 3Y*: 19.54%
• 5Y*: —
• 10Y*: —

XDEF

• 1D: -0.23%
• 1M: -2.40%
• YTD: —
• 6M: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

USNZ vs. XDEF - Yearly Performance Comparison

	2026 (YTD)
USNZ Xtrackers Net Zero Pathway Paris Aligned US Equity ETF	7.73%
XDEF Xtrackers Europe Defense Technologies ETF	-99.17%

Correlation

The correlation between USNZ and XDEF is 0.52, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (All Time) Calculated using the full available price history since Jan 2, 2026	0.52

Return for Risk

USNZ vs. XDEF — Risk / Return Rank

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

USNZ

USNZ Risk / Return Rank: 54
USNZ Sharpe Ratio Rank: 57
USNZ Sortino Ratio Rank: 56
USNZ Omega Ratio Rank: 55
USNZ Calmar Ratio Rank: 48
USNZ Martin Ratio Rank: 57

XDEF

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

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.

USNZ vs. XDEF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Xtrackers Net Zero Pathway Paris Aligned US Equity ETF (USNZ) and Xtrackers Europe Defense Technologies ETF (XDEF). 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.

	USNZ	XDEF	Difference
Sharpe ratio: Return per unit of total volatility	1.76	—	—
Sortino ratio: Return per unit of downside risk	2.45	—	—
Omega ratio: Gain probability vs. loss probability	1.31	—	—
Calmar ratio: Return relative to maximum drawdown	2.18	—	—
Martin ratio: Return relative to average drawdown	9.31	—	—

Drawdowns

USNZ vs. XDEF - Drawdown Comparison

The maximum USNZ drawdown since its inception was -19.16%, smaller than the maximum XDEF drawdown of -99.30%. Use the drawdown chart below to compare losses from any high point for USNZ and XDEF.

Drawdown Indicators

	USNZ	XDEF	Difference
Max Drawdown Largest peak-to-trough decline	-19.16%	-99.30%	+80.14%
Max Drawdown (1Y) Largest decline over 1 year	-11.07%	—	—
Max Drawdown (3Y) Largest decline over 3 years	-19.16%	—	—
Current Drawdown Current decline from peak	-3.54%	-99.26%	+95.72%
Average Drawdown Average peak-to-trough decline	-3.30%	-73.02%	+69.72%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.58%	—	—

Volatility

Volatility by Period

	USNZ	XDEF	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.26%	—	—
Volatility (6M) Calculated over the trailing 6-month period	11.08%	—	—
Volatility (1Y) Calculated over the trailing 1-year period	13.72%	148.20%	-134.48%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.70%	148.20%	-131.50%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.70%	148.20%	-131.50%

USNZ vs. XDEF - Expense Ratio Comparison

USNZ has a 0.10% expense ratio, which is lower than XDEF's 0.35% expense ratio.

Dividends

USNZ vs. XDEF - Dividend Comparison

USNZ's dividend yield for the trailing twelve months is around 0.98%, less than XDEF's 1.52% yield.

Position	TTM	2025	2024	2023	2022
USNZ Xtrackers Net Zero Pathway Paris Aligned US Equity ETF	0.98%	1.02%	1.14%	1.19%	0.80%
XDEF Xtrackers Europe Defense Technologies ETF	1.52%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both USNZ and XDEF in my portfolio?

USNZ and XDEF have a correlation of 0.52, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, USNZ or XDEF?

On fees, USNZ is cheaper at 0.10% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, USNZ or XDEF?

USNZ is cheaper with a 0.10% expense ratio, compared with 0.35% for XDEF.

Which ETF pays a higher dividend yield, USNZ or XDEF?

XDEF has the higher dividend yield at 1.52%, compared with 0.98% for USNZ.

What is the main difference between USNZ and XDEF?

USNZ is categorized as Large Cap Blend Equities, while XDEF is Aerospace & Defense. USNZ tracks Solactive ISS ESG United States Net Zero Pathway Enhanced Index - Benchmark TR Net, while XDEF tracks STOXX Europe Total Market Defence, Space and Cybersecurity Innovation 50-25 Index. Their fees differ too: 0.10% for USNZ and 0.35% for XDEF.