NATO vs SCHD
Themes Transatlantic Defense ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 104 holdings.
Side-by-Side Comparison
| Metric | NATO | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.06% | |
| AUM | $103M | $103.7B | |
| Dividend Yield | 0.42% | 3.31% | |
| Holdings | 90 | 104 | |
| YTD Return | +10.67% | +26.21% | |
| 1Y Return | +19.45% | +29.99% | |
| 3Y Return (annualized) | - | +15.73% | |
| 5Y Return (annualized) | - | +9.67% | |
| Volatility (annualized) | 18.4% | 13.6% | |
| Max Drawdown | -16.0% | -33.4% | |
| Fund Family | Themes ETFs | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Oct 10, 2024 | Oct 20, 2011 |
NATO vs SCHD Performance
Themes Transatlantic Defense ETF (NATO) is a ETF from Themes ETFs and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year NATO returned +19.45% while SCHD returned +29.99%. Year to date, NATO is up 10.67% versus a gain of 26.21% for SCHD.
Risk: Volatility and Drawdowns
NATO has been the more volatile fund, with annualized monthly volatility of 18.4% compared with 13.6% for SCHD. 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 -16.0% for NATO and -33.4% for SCHD. 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 0.35. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
NATO charges 0.35% per year while SCHD charges 0.06%. On a $10,000 position that is $35 vs $6 annually, a gap of $29 per year that compounds over a long holding period. On income, NATO currently yields 0.42% against 3.31% for SCHD.
Holdings Overlap
NATO and SCHD share 1 holdings out of 182 unique holdings combined, representing a 2.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in NATO | Weight in SCHD | Difference |
|---|---|---|---|
| LMT | 5.77% | 2.66% | 3.11% |
Frequently Asked Questions
Which is cheaper, NATO or SCHD?
NATO has an expense ratio of 0.35% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $29 per year of difference.
Which performed better, NATO or SCHD?
Over the past year NATO returned +19.45% vs +29.99% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (2 years), NATO annualized +34.01% vs +11.50% for SCHD. Past performance does not guarantee future results.
Which is riskier, NATO or SCHD?
NATO has been the more volatile fund at 18.4% annualized versus 13.6% for SCHD. Worst drawdown: NATO -16.0% vs SCHD -33.4%.
Should I hold both NATO and SCHD?
NATO and SCHD have a monthly-return correlation of 0.35, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NATO and SCHD?
NATO and SCHD share 1 common holdings with a 2.7% weight overlap. Combined, they hold 182 unique securities.
Which pays a higher dividend, NATO or SCHD?
NATO yields 0.42% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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