XAR vs. NATO
Compare and contrast key facts about SPDR S&P Aerospace & Defense ETF (XAR) and Themes Transatlantic Defense ETF (NATO).
XAR and NATO are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. XAR is a passively managed fund by State Street that tracks the performance of the S&P Aerospace & Defense Select Industry. It was launched on Sep 28, 2011. NATO is a passively managed fund by Themes that tracks the performance of the Solactive Transatlantic Aerospace and Defense Index. It was launched on Oct 10, 2024. Both XAR and NATO are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Performance
XAR vs. NATO - Performance Comparison
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XAR vs. NATO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | |
|---|---|---|---|
XAR SPDR S&P Aerospace & Defense ETF | 7.80% | 46.15% | 3.83% |
NATO Themes Transatlantic Defense ETF | 4.74% | 50.95% | 0.35% |
Returns By Period
In the year-to-date period, XAR achieves a 7.80% return, which is significantly higher than NATO's 4.74% return.
XAR
- 1D
- 2.35%
- 1M
- -10.28%
- YTD
- 7.80%
- 6M
- 10.02%
- 1Y
- 61.14%
- 3Y*
- 31.26%
- 5Y*
- 16.10%
- 10Y*
- 18.34%
NATO
- 1D
- 3.93%
- 1M
- -9.41%
- YTD
- 4.74%
- 6M
- 2.91%
- 1Y
- 38.60%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
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XAR vs. NATO - Expense Ratio Comparison
Both XAR and NATO have an expense ratio of 0.35%.
Return for Risk
XAR vs. NATO — Risk / Return Rank
XAR
NATO
XAR vs. NATO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for SPDR S&P Aerospace & Defense ETF (XAR) 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.
| XAR | NATO | Difference | |
|---|---|---|---|
Sharpe ratioReturn per unit of total volatility | 2.17 | 1.69 | +0.48 |
Sortino ratioReturn per unit of downside risk | 2.84 | 2.34 | +0.50 |
Omega ratioGain probability vs. loss probability | 1.36 | 1.33 | +0.04 |
Calmar ratioReturn relative to maximum drawdown | 3.62 | 2.49 | +1.13 |
Martin ratioReturn relative to average drawdown | 12.65 | 9.26 | +3.38 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| XAR | NATO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.17 | 1.69 | +0.48 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.71 | — | — |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.76 | — | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.84 | 1.70 | -0.86 |
Correlation
The correlation between XAR and NATO is 0.79, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Dividends
XAR vs. NATO - Dividend Comparison
XAR's dividend yield for the trailing twelve months is around 0.34%, less than NATO's 0.43% yield.
| TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XAR SPDR S&P Aerospace & Defense ETF | 0.34% | 0.40% | 0.66% | 0.54% | 0.50% | 0.83% | 0.63% | 0.75% | 1.19% | 0.76% | 1.09% | 2.31% |
NATO Themes Transatlantic Defense ETF | 0.43% | 0.45% | 0.08% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Drawdowns
XAR vs. NATO - Drawdown Comparison
The maximum XAR drawdown since its inception was -46.37%, which is greater than NATO's maximum drawdown of -15.99%. Use the drawdown chart below to compare losses from any high point for XAR and NATO.
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Drawdown Indicators
| XAR | NATO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -46.37% | -15.99% | -30.38% |
Max Drawdown (1Y)Largest decline over 1 year | -17.22% | -15.99% | -1.23% |
Max Drawdown (5Y)Largest decline over 5 years | -32.40% | — | — |
Max Drawdown (10Y)Largest decline over 10 years | -46.37% | — | — |
Current DrawdownCurrent decline from peak | -11.16% | -9.41% | -1.75% |
Average DrawdownAverage peak-to-trough decline | -6.76% | -2.88% | -3.88% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.93% | 4.30% | +0.63% |
Volatility
XAR vs. NATO - Volatility Comparison
SPDR S&P Aerospace & Defense ETF (XAR) has a higher volatility of 10.57% compared to Themes Transatlantic Defense ETF (NATO) at 9.42%. This indicates that XAR'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.
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Volatility by Period
| XAR | NATO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 10.57% | 9.42% | +1.15% |
Volatility (6M)Calculated over the trailing 6-month period | 21.39% | 15.43% | +5.96% |
Volatility (1Y)Calculated over the trailing 1-year period | 28.34% | 22.94% | +5.40% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 22.93% | 21.95% | +0.98% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 24.35% | 21.95% | +2.40% |