XDEF vs. NATO

Last updated Apr 1, 2026

Compare and contrast key facts about Xtrackers Europe Defense Technologies ETF (XDEF) and Themes Transatlantic Defense ETF (NATO).

XDEF and NATO are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. XDEF is a passively managed fund by Xtrackers that tracks the performance of the STOXX Europe Total Market Defence, Space and Cybersecurity Innovation 50-25 Index. It was launched on Feb 19, 2026. 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 XDEF 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

XDEF vs. NATO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Xtrackers Europe Defense Technologies ETF (XDEF) and Themes Transatlantic Defense ETF (NATO). The values are adjusted to include any dividend payments, if applicable.

XDEF vs. NATO - Yearly Performance Comparison

	2026 (YTD)
XDEF Xtrackers Europe Defense Technologies ETF	-99.14%
NATO Themes Transatlantic Defense ETF	-1.25%

Returns By Period

XDEF

• 1D: 5.06%
• 1M: -8.83%
• YTD: —
• 6M: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

NATO

• 1D: 3.75%
• 1M: -11.24%
• YTD: 0.78%
• 6M: -1.05%
• 1Y: 34.54%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

XDEF vs. NATO - Expense Ratio Comparison

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

XDEF

Xtrackers Europe Defense Technologies ETF

NATO

Themes Transatlantic Defense ETF

Return for Risk

XDEF 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: 81
NATO Sharpe Ratio Rank: 82
NATO Sortino Ratio Rank: 84
NATO Omega Ratio Rank: 80
NATO Calmar Ratio Rank: 81
NATO Martin Ratio Rank: 79

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.

XDEF vs. NATO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Xtrackers Europe Defense Technologies ETF (XDEF) 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

	XDEF	NATO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	—	1.53	—
Sharpe Ratio (All Time) Calculated using the full available price history	-0.49	1.56	-2.05

Correlation

The correlation between XDEF 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

XDEF vs. NATO - Dividend Comparison

XDEF has not paid dividends to shareholders, while NATO's dividend yield for the trailing twelve months is around 0.45%.

	TTM	2025	2024
XDEF Xtrackers Europe Defense Technologies ETF	0.00%	0.00%	0.00%
NATO Themes Transatlantic Defense ETF	0.45%	0.45%	0.08%

Drawdowns

XDEF vs. NATO - Drawdown Comparison

The maximum XDEF drawdown since its inception was -99.27%, which is greater than NATO's maximum drawdown of -15.99%. Use the drawdown chart below to compare losses from any high point for XDEF and NATO.

Drawdown Indicators

	XDEF	NATO	Difference
Max Drawdown Largest peak-to-trough decline	-99.27%	-15.99%	-83.28%
Max Drawdown (1Y) Largest decline over 1 year	—	-15.99%	—
Current Drawdown Current decline from peak	-99.23%	-12.83%	-86.40%
Average Drawdown Average peak-to-trough decline	-49.34%	-2.86%	-46.48%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	4.26%	—

Volatility

Volatility by Period

	XDEF	NATO	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	8.45%	—
Volatility (6M) Calculated over the trailing 6-month period	—	15.04%	—
Volatility (1Y) Calculated over the trailing 1-year period	205.45%	22.63%	+182.82%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	205.45%	21.75%	+183.70%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	205.45%	21.75%	+183.70%