WAR vs. NATO

Last updated Jun 3, 2026

WAR (U.S. Global Technology and Aerospace & Defense ETF) and NATO (Themes Transatlantic Defense ETF) are both Aerospace & Defense funds. WAR is actively managed, while NATO is passively managed. At a 0.30 correlation, their price movements are largely independent. WAR charges 0.60%/yr vs 0.35%/yr for NATO.

Performance

WAR vs. NATO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in U.S. Global Technology and Aerospace & Defense ETF (WAR) and Themes Transatlantic Defense ETF (NATO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

WAR

• 1D: 2.80%
• 1M: —
• YTD: —
• 6M: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

NATO

• 1D: -0.79%
• 1M: 2.75%
• YTD: 3.33%
• 6M: 11.18%
• 1Y: 16.17%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

WAR vs. NATO - Yearly Performance Comparison

	2026 (YTD)
WAR U.S. Global Technology and Aerospace & Defense ETF	4.68%
NATO Themes Transatlantic Defense ETF	-1.08%

Correlation

The correlation between WAR and NATO is 0.30, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (All Time) Calculated using the full available price history since May 27, 2026	0.30

Return for Risk

WAR vs. NATO — Risk / Return Rank

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

NATO

NATO Risk / Return Rank: 23
NATO Sharpe Ratio Rank: 23
NATO Sortino Ratio Rank: 23
NATO Omega Ratio Rank: 23
NATO Calmar Ratio Rank: 23
NATO Martin Ratio Rank: 23

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.

WAR vs. NATO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for U.S. Global Technology and Aerospace & Defense ETF (WAR) 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.

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

Sharpe Ratios by Period

	WAR	NATO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	—	0.79	—
Sharpe Ratio (All Time) Calculated using the full available price history	23.32	1.41	+21.91

Drawdowns

WAR vs. NATO - Drawdown Comparison

The maximum WAR drawdown since its inception was -1.63%, smaller than the maximum NATO drawdown of -15.99%. Use the drawdown chart below to compare losses from any high point for WAR and NATO.

Drawdown Indicators

	WAR	NATO	Difference
Max Drawdown Largest peak-to-trough decline	-1.63%	-15.99%	+14.36%
Max Drawdown (1Y) Largest decline over 1 year	—	-15.99%	—
Current Drawdown Current decline from peak	0.00%	-10.63%	+10.63%
Average Drawdown Average peak-to-trough decline	-0.67%	-3.69%	+3.02%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	6.12%	—

Volatility

Volatility by Period

	WAR	NATO	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	7.82%	—
Volatility (6M) Calculated over the trailing 6-month period	—	17.74%	—
Volatility (1Y) Calculated over the trailing 1-year period	43.24%	20.66%	+22.58%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	43.24%	22.59%	+20.65%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	43.24%	22.59%	+20.65%

WAR vs. NATO - Expense Ratio Comparison

WAR has a 0.60% expense ratio, which is higher than NATO's 0.35% expense ratio.

Dividends

WAR vs. NATO - Dividend Comparison

WAR has not paid dividends to shareholders, while NATO's dividend yield for the trailing twelve months is around 0.44%.

Position	TTM	2025	2024
NATO Themes Transatlantic Defense ETF	0.44%	0.45%	0.08%
WAR U.S. Global Technology and Aerospace & Defense ETF	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both WAR and NATO in my portfolio?

WAR and NATO have a correlation of 0.30, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, WAR or NATO?

On fees, NATO is cheaper at 0.35% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, WAR or NATO?

NATO is cheaper with a 0.35% expense ratio, compared with 0.60% for WAR.

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

NATO has the higher dividend yield at 0.44%, compared with 0.00% for WAR.

What is the main difference between WAR and NATO?

They also come from different issuers: US Global and Themes. Their fees differ too: 0.60% for WAR and 0.35% for NATO.