NATO vs VTI
Themes Transatlantic Defense ETF vs Vanguard Morningstar Total Stock Market ETF
Which is better, NATO or VTI?
Each has led over a different period.
VTI has a lower expense ratio. NATO led over the full window, VTI over 1Y. VTI is less concentrated, with 33.3% of the fund in its ten largest positions against 61.7%.
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 | VTI |
|---|---|---|
| Expense Ratio | 0.35% | 0.03%Best |
| AUM | $93M | $690.1B |
| Dividend Yield | 0.43% | 1.03% |
| Holdings | 190 | 3,524 |
| YTD Return | -5.80% | +14.14%Best |
| 1Y Return | -5.90% | +16.22%Best |
| 3Y Return (annualized) | - | +22.93% |
| 5Y Return (annualized) | - | +12.76% |
| Volatility (annualized) | 19.6% | 12.9%Best |
| Max Drawdown | -16.9%Best | -19.3% |
| $10,000 over 2 years | $14,624Best | $13,661 |
| Top 10 Weight | 61.7% | 33.3%Best |
| Fund Family | Themes ETFs | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Oct 10, 2024 | May 24, 2001 |
Volatility and max drawdown, and the $10,000 over 2 years row, are measured over the window both funds cover: Oct 11, 2024 to Oct 5, 2026 (2 years).
NATO vs VTI 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 2 years both funds cover.
NATO vs VTI Performance
Themes Transatlantic Defense ETF (NATO) is an ETF from Themes ETFs and Vanguard Morningstar Total Stock Market ETF (VTI) is an ETF from Vanguard (US). Over the past year NATO returned -5.90% while VTI returned +16.22%. Year to date, NATO is down 5.80% versus a gain of 14.14% for VTI.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
NATO has been the more volatile fund, with annualized monthly volatility of 19.6% compared with 12.9% for VTI. 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 -16.9% for NATO and -19.3% for VTI. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.46. They move together some of the time, and apart the rest.
Fees and Cost Over Time
NATO charges 0.35% per year while VTI 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 0.43% against 1.03% for VTI.
Holdings Overlap
64.1% of NATO's money is in holdings VTI also owns. 2.5% of VTI's money is in holdings NATO also owns.
The two portfolios partly overlap.
The two holdings books were reported 46 days apart, NATO as of Sep 15, 2026 and VTI as of Jul 31, 2026, so some of the difference between them is the time between the two reports rather than the funds.
55 positions in common, counted across the 89 positions we hold weights for in NATO and 3,463 in VTI, against full books of 190 and 3,524.
What only one of them owns
Our book lists 1,121 positions for VTI that do not appear in our book for NATO (95.0% of the fund), and 5 for NATO that do not appear in VTI (0.5%).
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 VTI | Difference |
|---|---|---|---|
| RTXRaytheon Co. | 8.56% | 0.40% | 8.16% |
| GEGeneral Electric Co. | 7.62% | 0.52% | 7.10% |
| BABoeing Co | 7.84% | 0.24% | 7.60% |
| LMTLockheed Martin Corp | 4.82% | 0.19% | 4.63% |
| GDGeneral Dynamics Corp. | 4.05% | 0.14% | 3.91% |
| HWMHowmet Aerospace Inc. | 4.02% | 0.16% | 3.86% |
| NOCNorthrop Grumman Corp. | 3.81% | 0.11% | 3.70% |
| HONHoneywell International Inc | 3.25% | 0.11% | 3.14% |
| TDGTransdigm Group Inc. | 3.10% | 0.10% | 3.00% |
| LHXL3Harris Technologies Inc. | 2.35% | 0.07% | 2.28% |
64.1% of NATO is already inside VTI.
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 VTI?
NATO has an expense ratio of 0.35% while VTI charges 0.03%. VTI is the cheaper option, by $32 a year on a $10,000 investment.
Which performed better, NATO or VTI?
Over the past year NATO returned -5.90% vs +16.22% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (2 years), NATO annualized +20.93% vs +16.88% for VTI. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, NATO or VTI?
NATO has been the more volatile fund at 19.6% annualized versus 12.9% for VTI. Worst drawdown: NATO -16.9% vs VTI -19.3%.
Should I hold both NATO and VTI?
NATO and VTI have a monthly-return correlation of 0.46, 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 VTI?
64.1% of NATO's money is in holdings VTI also owns. 2.5% of VTI's is in holdings NATO also owns. They hold 55 positions in common, counted across the 89 positions we hold weights for in NATO and 3,463 in VTI.
Which pays a higher dividend, NATO or VTI?
NATO yields 0.43% while VTI yields 1.03%, so VTI currently pays the higher dividend yield.
Is VTI better than NATO?
VTI has a lower expense ratio. NATO led over the full window, VTI over 1Y. VTI is less concentrated, with 33.3% of the fund in its ten largest positions against 61.7%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.