WISE vs. NATO

Last updated Jun 24, 2026

WISE (Themes Generative Artificial Intelligence ETF) and NATO (Themes Transatlantic Defense ETF) are both exchange-traded funds - WISE is a Technology Equities fund tracking the Solactive Generative Artificial Intelligence Index - Benchmark TR Gross, while NATO is a Aerospace & Defense fund tracking the Solactive Transatlantic Aerospace and Defense Index. Both are passively managed. Over the past year, WISE returned 17.25% vs 17.37% for NATO. At a 0.45 correlation, their price movements are largely independent. Both charge a 0.35% expense ratio.

Performance

WISE vs. NATO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Themes Generative Artificial Intelligence ETF (WISE) 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, WISE achieves a -2.18% return, which is significantly lower than NATO's 4.58% return.

WISE

• 1D: -3.61%
• 1M: -5.13%
• YTD: -2.18%
• 6M: -3.57%
• 1Y: 17.25%
• 3Y*: —
• 5Y*: —
• 10Y*: —

NATO

• 1D: -0.10%
• 1M: 1.72%
• YTD: 4.58%
• 6M: 4.25%
• 1Y: 17.37%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

WISE vs. NATO - Yearly Performance Comparison

	2026 (YTD)	2025	2024
WISE Themes Generative Artificial Intelligence ETF	-2.18%	5.88%	23.77%
NATO Themes Transatlantic Defense ETF	4.58%	50.95%	0.51%

Correlation

The correlation between WISE and NATO is 0.51, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.51
Correlation (All Time) Calculated using the full available price history since Oct 11, 2024	0.45

The correlation between WISE and NATO has been stable across timeframes, ranging from 0.45 to 0.51 - a consistent structural relationship.

Return for Risk

WISE vs. NATO — Risk / Return Rank

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

WISE

WISE Risk / Return Rank: 16
WISE Sharpe Ratio Rank: 17
WISE Sortino Ratio Rank: 17
WISE Omega Ratio Rank: 17
WISE Calmar Ratio Rank: 15
WISE Martin Ratio Rank: 14

NATO

NATO Risk / Return Rank: 23
NATO Sharpe Ratio Rank: 24
NATO Sortino Ratio Rank: 25
NATO Omega Ratio Rank: 23
NATO Calmar Ratio Rank: 24
NATO Martin Ratio Rank: 22

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.

WISE vs. NATO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Themes Generative Artificial Intelligence ETF (WISE) 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.

	WISE	NATO	Difference
Sharpe ratio: Return per unit of total volatility	0.52	0.81	-0.29
Sortino ratio: Return per unit of downside risk	0.91	1.31	-0.40
Omega ratio: Gain probability vs. loss probability	1.11	1.15	-0.04
Calmar ratio: Return relative to maximum drawdown	0.51	1.09	-0.58
Martin ratio: Return relative to average drawdown	1.20	2.65	-1.45

WISE vs. NATO - Sharpe Ratio Comparison

The current WISE Sharpe Ratio is 0.52, which is lower than the NATO Sharpe Ratio of 0.81. The chart below compares the historical Sharpe Ratios of WISE and NATO, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

WISE vs. NATO - Drawdown Comparison

The maximum WISE drawdown since its inception was -39.15%, which is greater than NATO's maximum drawdown of -15.99%. Use the drawdown chart below to compare losses from any high point for WISE and NATO.

Drawdown Indicators

	WISE	NATO	Difference
Max Drawdown Largest peak-to-trough decline	-39.15%	-15.99%	-23.16%
Max Drawdown (1Y) Largest decline over 1 year	-34.08%	-15.99%	-18.09%
Current Drawdown Current decline from peak	-16.72%	-9.55%	-7.17%
Average Drawdown Average peak-to-trough decline	-11.90%	-3.89%	-8.01%
Ulcer Index Depth and duration of drawdowns from previous peaks	14.44%	6.57%	+7.87%

Volatility

WISE vs. NATO - Volatility Comparison

Themes Generative Artificial Intelligence ETF (WISE) has a higher volatility of 13.48% compared to Themes Transatlantic Defense ETF (NATO) at 7.57%. This indicates that WISE's price experiences larger fluctuations and is considered to be riskier than NATO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	WISE	NATO	Difference
Volatility (1M) Calculated over the trailing 1-month period	13.48%	7.57%	+5.91%
Volatility (6M) Calculated over the trailing 6-month period	25.50%	18.35%	+7.15%
Volatility (1Y) Calculated over the trailing 1-year period	33.41%	21.46%	+11.95%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	33.85%	22.72%	+11.13%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	33.85%	22.72%	+11.13%

WISE vs. NATO - Expense Ratio Comparison

Both WISE and NATO have an expense ratio of 0.35%.

Dividends

WISE vs. NATO - Dividend Comparison

WISE's dividend yield for the trailing twelve months is around 4.22%, more than NATO's 0.43% yield.

Position	TTM	2025	2024
NATO Themes Transatlantic Defense ETF	0.43%	0.45%	0.08%
WISE Themes Generative Artificial Intelligence ETF	4.22%	4.12%	0.00%

Frequently Asked Questions

Can I hold both WISE and NATO in my portfolio?

WISE and NATO have a correlation of 0.51, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, WISE or NATO?

WISE has higher volatility (13.48%) compared to NATO (7.57%). In terms of maximum drawdown, WISE dropped -39.15% vs NATO's -15.99%.

Which ETF is better, WISE or NATO?

On 1-year performance, NATO leads with 17.37% vs 17.25% for WISE. Both ETFs have the same 0.35% expense ratio. On volatility, NATO has been the lower-risk option at 7.57%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, WISE or NATO?

Over the 1-year period, NATO has performed better with a 17.37% return vs 17.25%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, WISE or NATO?

WISE and NATO have the same expense ratio: 0.35% per year.

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

WISE has the higher dividend yield at 4.22%, compared with 0.43% for NATO.

What is the main difference between WISE and NATO?

WISE is categorized as Technology Equities, while NATO is Aerospace & Defense. WISE tracks Solactive Generative Artificial Intelligence Index - Benchmark TR Gross, while NATO tracks Solactive Transatlantic Aerospace and Defense Index.

Which has better risk-adjusted returns?

NATO currently has the higher Sharpe Ratio (0.81 vs 0.52), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.