WDGF vs. NATO

Last updated Jun 3, 2026

WDGF (WisdomTree Global Defense Fund) and NATO (Themes Transatlantic Defense ETF) are both Aerospace & Defense funds - WDGF tracks the WisdomTree Global Defense Index while NATO tracks the Solactive Transatlantic Aerospace and Defense Index. Both are passively managed. Their correlation of 0.89 suggests significant overlap in exposure. WDGF charges 0.45%/yr vs 0.35%/yr for NATO.

Performance

WDGF vs. NATO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in WisdomTree Global Defense Fund (WDGF) 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, WDGF achieves a 4.55% return, which is significantly higher than NATO's 3.33% return.

WDGF

• 1D: -1.76%
• 1M: -2.27%
• YTD: 4.55%
• 6M: 11.25%
• 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)

WDGF vs. NATO - Yearly Performance Comparison

	2026 (YTD)	2025
WDGF WisdomTree Global Defense Fund	4.55%	-0.25%
NATO Themes Transatlantic Defense ETF	3.33%	2.86%

Correlation

The correlation between WDGF and NATO is 0.89, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (All Time) Calculated using the full available price history since Sep 15, 2025	0.89

Return for Risk

WDGF 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.

WDGF vs. NATO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for WisdomTree Global Defense Fund (WDGF) 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

	WDGF	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	0.27	1.41	-1.14

Drawdowns

WDGF vs. NATO - Drawdown Comparison

The maximum WDGF drawdown since its inception was -14.36%, smaller than the maximum NATO drawdown of -15.99%. Use the drawdown chart below to compare losses from any high point for WDGF and NATO.

Drawdown Indicators

	WDGF	NATO	Difference
Max Drawdown Largest peak-to-trough decline	-14.36%	-15.99%	+1.63%
Max Drawdown (1Y) Largest decline over 1 year	—	-15.99%	—
Current Drawdown Current decline from peak	-11.49%	-10.63%	-0.86%
Average Drawdown Average peak-to-trough decline	-5.42%	-3.69%	-1.73%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	6.12%	—

Volatility

Volatility by Period

	WDGF	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	22.40%	20.66%	+1.74%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.40%	22.59%	-0.19%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.40%	22.59%	-0.19%

WDGF vs. NATO - Expense Ratio Comparison

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

Dividends

WDGF vs. NATO - Dividend Comparison

WDGF's dividend yield for the trailing twelve months is around 0.05%, less than NATO's 0.44% yield.

Position	TTM	2025	2024
NATO Themes Transatlantic Defense ETF	0.44%	0.45%	0.08%
WDGF WisdomTree Global Defense Fund	0.05%	0.05%	0.00%

Frequently Asked Questions

Can I hold both WDGF and NATO in my portfolio?

WDGF and NATO have a correlation of 0.89, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, WDGF 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, WDGF or NATO?

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

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

NATO has the higher dividend yield at 0.44%, compared with 0.05% for WDGF.

What is the main difference between WDGF and NATO?

WDGF tracks WisdomTree Global 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 WDGF and 0.35% for NATO.