NATO vs SPY
Themes Transatlantic Defense ETF vs State Street SPDR S&P 500 ETF Trust
Which is better, NATO or SPY?
Each has led over a different period.
SPY has a lower expense ratio. NATO led over the full window, SPY over 1Y. SPY is less concentrated, with 38.0% of the fund in its ten largest positions against 60.8%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | NATO | SPY |
|---|---|---|
| Expense Ratio | 0.35% | 0.09%Best |
| AUM | $98M | $804.7B |
| Dividend Yield | 0.43% | 0.98% |
| Holdings | 94 | 505 |
| YTD Return | -2.45% | +11.52%Best |
| 1Y Return | +4.30% | +17.48%Best |
| 3Y Return (annualized) | - | +20.62% |
| 5Y Return (annualized) | - | +12.73% |
| Volatility (annualized) | 19.2% | 12.9%Best |
| Max Drawdown | -16.0%Best | -18.8% |
| $10,000 over 1.9 years | $15,049Best | $13,316 |
| Top 10 Weight | 60.8% | 38.0%Best |
| Fund Family | Themes ETFs | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Oct 10, 2024 | Jan 22, 1993 |
Volatility and max drawdown, and the $10,000 over 1.9 years row, are measured over the window both funds cover: Oct 11, 2024 to Sep 10, 2026 (1.9 years).
NATO vs SPY growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 1.9 years both funds cover.
NATO vs SPY Performance
Themes Transatlantic Defense ETF (NATO) is an ETF from Themes ETFs and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year NATO returned +4.30% while SPY returned +17.48%. Year to date, NATO is down 2.45% versus a gain of 11.52% for SPY.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
NATO has been the more volatile fund, with annualized monthly volatility of 19.2% compared with 12.9% for SPY. 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 -18.8% for SPY. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.47. They move together some of the time, and apart the rest.
Fees and Cost Over Time
NATO charges 0.35% per year while SPY charges 0.09%. On a $10,000 position that is $35 vs $9 annually, a gap of $26 per year that compounds over a long holding period. On income, NATO currently yields 0.43% against 0.98% for SPY.
Holdings Overlap
53.4% of NATO's money is in holdings SPY also owns. 2.4% of SPY's money is in holdings NATO also owns.
The two portfolios partly overlap.
14 positions in common, counted across the 89 positions we hold weights for in NATO and 504 in SPY, against full books of 94 and 505.
What only one of them owns
Our book lists 480 positions for SPY that do not appear in our book for NATO (97.1% of the fund), and 43 for NATO that do not appear in SPY (10.9%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in NATO | Weight in SPY | Difference |
|---|---|---|---|
| RTXRaytheon Technologies Corp | 8.49% | 0.44% | 8.05% |
| GEGeneral Electric Co. | 7.74% | 0.59% | 7.15% |
| BABoeing Co | 7.36% | 0.28% | 7.08% |
| LMTLockheed Martin Corp | 4.72% | 0.18% | 4.54% |
| HWMHowmet Aerospace Inc. | 4.46% | 0.17% | 4.29% |
| GDGeneral Dynamics Corp. | 3.87% | 0.15% | 3.72% |
| NOCNorthrop Grumman Corp. | 3.60% | 0.11% | 3.49% |
| HONHoneywell International Inc | 3.23% | 0.12% | 3.11% |
| TDGTransdigm Group Inc. | 3.01% | 0.11% | 2.90% |
| LHXL3Harris Technologies Inc. | 2.29% | 0.08% | 2.21% |
53.4% of NATO is already inside SPY.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, NATO or SPY?
NATO has an expense ratio of 0.35% while SPY charges 0.09%. SPY is the cheaper option, by $26 a year on a $10,000 investment.
Which performed better, NATO or SPY?
Over the past year NATO returned +4.30% vs +17.48% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (2 years), NATO annualized +24.00% vs +16.27% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, NATO or SPY?
NATO has been the more volatile fund at 19.2% annualized versus 12.9% for SPY. Worst drawdown: NATO -16.0% vs SPY -18.8%.
Should I hold both NATO and SPY?
NATO and SPY have a monthly-return correlation of 0.47, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between NATO and SPY?
53.4% of NATO's money is in holdings SPY also owns. 2.4% of SPY's is in holdings NATO also owns. They hold 14 positions in common, counted across the 89 positions we hold weights for in NATO and 504 in SPY.
Which pays a higher dividend, NATO or SPY?
NATO yields 0.43% while SPY yields 0.98%, so SPY currently pays the higher dividend yield.
Is SPY better than NATO?
SPY has a lower expense ratio. NATO led over the full window, SPY over 1Y. SPY is less concentrated, with 38.0% of the fund in its ten largest positions against 60.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.