IVV vs NATO
iShares Core S&P 500 ETF vs Themes Transatlantic Defense ETF
Quick Verdict
IVV has a lower expense ratio. IVV delivered stronger 1-year returns. IVV offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | IVV | NATO | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.35% | |
| AUM | $865.2B | $103M | |
| Dividend Yield | 1.09% | 0.42% | |
| Holdings | 508 | 90 | |
| YTD Return | +14.50% | +10.67% | |
| 1Y Return | +22.02% | +19.45% | |
| 3Y Return (annualized) | +21.80% | - | |
| 5Y Return (annualized) | +13.37% | - | |
| Volatility (annualized) | 15.1% | 18.4% | |
| Max Drawdown | -56.5% | -16.0% | |
| Fund Family | iShares by BlackRock (US) | Themes ETFs | |
| Category | Equity | Equity | |
| Inception | May 15, 2000 | Oct 10, 2024 |
IVV vs NATO Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and Themes Transatlantic Defense ETF (NATO) is a ETF from Themes ETFs. Over the past year IVV returned +22.02% while NATO returned +19.45%. Year to date, IVV is up 14.50% versus a gain of 10.67% for NATO.
Risk: Volatility and Drawdowns
NATO has been the more volatile fund, with annualized monthly volatility of 18.4% compared with 15.1% for IVV. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -56.5% for IVV and -16.0% for NATO. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.48. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IVV charges 0.03% per year while NATO charges 0.35%. On a $10,000 position that is $3 vs $35 annually, a gap of $32 per year that compounds over a long holding period. On income, IVV currently yields 1.09% against 0.42% for NATO.
Holdings Overlap
IVV and NATO share 15 holdings out of 573 unique holdings combined, representing a 2.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IVV or NATO?
IVV has an expense ratio of 0.03% while NATO charges 0.35%. IVV is the cheaper option. On a $10,000 investment, that is $32 per year of difference.
Which performed better, IVV or NATO?
Over the past year IVV returned +22.02% vs +19.45% for NATO, so IVV leads on 1-year performance. Over the longest common window we track (2 years), IVV annualized +7.07% vs +34.01% for NATO. Past performance does not guarantee future results.
Which is riskier, IVV or NATO?
NATO has been the more volatile fund at 18.4% annualized versus 15.1% for IVV. Worst drawdown: IVV -56.5% vs NATO -16.0%.
Should I hold both IVV and NATO?
IVV and NATO have a monthly-return correlation of 0.48, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and NATO?
IVV and NATO share 15 common holdings with a 2.2% weight overlap. Combined, they hold 573 unique securities.
Which pays a higher dividend, IVV or NATO?
IVV yields 1.09% while NATO yields 0.42%, so IVV currently pays the higher dividend yield.
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