NATO vs VOO
Themes Transatlantic Defense ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 509 holdings.
Side-by-Side Comparison
| Metric | NATO | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.03% | |
| AUM | $103M | $979.0B | |
| Dividend Yield | 0.42% | 1.09% | |
| Holdings | 90 | 509 | |
| YTD Return | +10.67% | +14.48% | |
| 1Y Return | +19.45% | +22.02% | |
| 3Y Return (annualized) | - | +21.80% | |
| 5Y Return (annualized) | - | +13.36% | |
| Volatility (annualized) | 18.4% | 14.2% | |
| Max Drawdown | -16.0% | -34.3% | |
| Fund Family | Themes ETFs | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 10, 2024 | Sep 7, 2010 |
NATO vs VOO Performance
Themes Transatlantic Defense ETF (NATO) is a ETF from Themes ETFs and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year NATO returned +19.45% while VOO returned +22.02%. Year to date, NATO is up 10.67% versus a gain of 14.48% for VOO.
Risk: Volatility and Drawdowns
NATO has been the more volatile fund, with annualized monthly volatility of 18.4% compared with 14.2% for VOO. 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 -34.3% for VOO. 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
NATO charges 0.35% per year while VOO charges 0.03%. On a $10,000 position that is $35 vs $3 annually, a gap of $32 per year that compounds over a long holding period. On income, NATO currently yields 0.42% against 1.09% for VOO.
Holdings Overlap
NATO and VOO share 15 holdings out of 573 unique holdings combined, representing a 2.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, NATO or VOO?
NATO has an expense ratio of 0.35% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $32 per year of difference.
Which performed better, NATO or VOO?
Over the past year NATO returned +19.45% vs +22.02% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (2 years), NATO annualized +34.01% vs +13.61% for VOO. Past performance does not guarantee future results.
Which is riskier, NATO or VOO?
NATO has been the more volatile fund at 18.4% annualized versus 14.2% for VOO. Worst drawdown: NATO -16.0% vs VOO -34.3%.
Should I hold both NATO and VOO?
NATO and VOO 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 NATO and VOO?
NATO and VOO share 15 common holdings with a 2.3% weight overlap. Combined, they hold 573 unique securities.
Which pays a higher dividend, NATO or VOO?
NATO yields 0.42% while VOO yields 1.09%, so VOO currently pays the higher dividend yield.
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