WDAF vs. NATO

Last updated Aug 2, 2026

WDAF (WisdomTree Asia Defense Fund) and NATO (Themes Transatlantic Defense ETF) are both Aerospace & Defense funds - WDAF tracks the WisdomTree Asia Defense Index while NATO tracks the Solactive Transatlantic Aerospace and Defense Index. Both are passively managed. Their 0.47 correlation means their historical movements had little consistent relationship. WDAF charges 0.45%/yr vs 0.35%/yr for NATO.

Performance

WDAF vs. NATO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in WisdomTree Asia Defense Fund (WDAF) 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, WDAF achieves a -0.06% return, which is significantly lower than NATO's 11.23% return.

WDAF

• 1D: -0.96%
• 1M: -9.68%
• 6M: -15.34%
• YTD: -0.06%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: —

NATO

• 1D: 2.40%
• 1M: 0.81%
• 6M: 1.90%
• YTD: 11.23%
• 1Y: 19.00%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 33.53%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
NATO Themes Transatlantic Defense ETF	$882.24K	$720.46K	$1.15M
WDAF WisdomTree Asia Defense Fund	$206.13K	$199.18K	$502.59K

WDAF vs. NATO - Yearly Performance Comparison

	2026 (YTD)	2025
WDAF WisdomTree Asia Defense Fund	-0.06%	-7.71%
NATO Themes Transatlantic Defense ETF	11.23%	2.75%

Correlation

The correlation between WDAF and NATO is 0.47, which is low. Their historical price movements had little consistent relationship.

	Correlation
Correlation (All Time) Calculated using the full available price history since Sep 12, 2025	0.47

Return for Risk

WDAF vs. NATO — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

WDAF

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

NATO

NATO Risk / Return Rank: 33
NATO Sharpe Ratio Rank: 34
NATO Sortino Ratio Rank: 36
NATO Omega Ratio Rank: 33
NATO Calmar Ratio Rank: 34
NATO Martin Ratio Rank: 30

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

WDAF vs. NATO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for WisdomTree Asia Defense Fund (WDAF) 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.

	WDAF	NATO	Difference
Sharpe ratio: Return per unit of total volatility	—	0.86	—
Sortino ratio: Return per unit of downside risk	—	1.37	—
Omega ratio: Gain probability vs. loss probability	—	1.16	—
Calmar ratio: Return relative to maximum drawdown	—	1.19	—
Martin ratio: Return relative to average drawdown	—	2.67	—

Drawdowns

WDAF vs. NATO - Drawdown Comparison

The maximum WDAF drawdown since its inception was -28.19%, which is greater than NATO's maximum drawdown of -15.99%. Use the drawdown chart below to compare losses from any high point for WDAF and NATO.

Drawdown Indicators

	WDAF	NATO	Difference
Max Drawdown Largest peak-to-trough decline	-28.19%	-15.99%	-12.20%
Max Drawdown (1Y) Largest decline over 1 year	—	-15.99%	—
Current Drawdown Current decline from peak	-25.01%	-3.80%	-21.21%
Average Drawdown Average peak-to-trough decline	-8.46%	-4.16%	-4.30%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	7.13%	—

Volatility

Volatility by Period

	WDAF	NATO	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	6.62%	—
Volatility (6M) Calculated over the trailing 6-month period	—	18.63%	—
Volatility (1Y) Calculated over the trailing 1-year period	33.47%	22.11%	+11.36%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	33.47%	22.67%	+10.80%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	33.47%	22.67%	+10.80%

WDAF vs. NATO - Expense Ratio Comparison

WDAF has a 0.45% expense ratio, which is higher than NATO's 0.35% expense ratio.

Dividends

WDAF vs. NATO - Dividend Comparison

WDAF's dividend yield for the trailing twelve months is around 0.13%, less than NATO's 0.41% yield.

Position	TTM	2025	2024
NATO Themes Transatlantic Defense ETF	0.41%	0.45%	0.08%
WDAF WisdomTree Asia Defense Fund	0.13%	0.13%	0.00%

Frequently Asked Questions

Can I hold both WDAF and NATO in my portfolio?

WDAF and NATO have a correlation of 0.47, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, WDAF 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, WDAF or NATO?

NATO is cheaper with a 0.35% expense ratio, compared with 0.45% for WDAF.

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

NATO has the higher dividend yield at 0.41%, compared with 0.13% for WDAF.

What is the main difference between WDAF and NATO?

WDAF tracks WisdomTree Asia Defense Index, while NATO tracks Solactive Transatlantic Aerospace and Defense Index. They also come from different issuers: WisdomTree and Themes. Their fees differ too: 0.45% for WDAF and 0.35% for NATO.