NATO vs VTI
Themes Transatlantic Defense ETF vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | NATO | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.03% | |
| AUM | $108M | $666.9B | |
| Dividend Yield | 0.42% | 1.07% | |
| Holdings | 90 | 3,543 | |
| YTD Return | +6.03% | +13.14% | |
| 1Y Return | +15.77% | +22.35% | |
| 3Y Return (annualized) | - | +21.83% | |
| 5Y Return (annualized) | - | +12.01% | |
| Volatility (annualized) | 18.5% | 15.3% | |
| Max Drawdown | -16.0% | -56.6% | |
| Fund Family | Themes ETFs | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 10, 2024 | May 24, 2001 |
NATO vs VTI Performance
Themes Transatlantic Defense ETF (NATO) is a ETF from Themes ETFs and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year NATO returned +15.77% while VTI returned +22.35%. Year to date, NATO is up 6.03% versus a gain of 13.14% for VTI.
Risk: Volatility and Drawdowns
NATO has been the more volatile fund, with annualized monthly volatility of 18.5% compared with 15.3% 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 -16.0% for NATO and -56.6% for VTI. 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 0.47. They move independently enough that combining them can meaningfully diversify a portfolio.
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 0.42% against 1.07% for VTI.
Holdings Overlap
NATO and VTI share 46 holdings out of 2825 unique holdings combined, representing a 2.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $32 per year of difference.
Which performed better, NATO or VTI?
Over the past year NATO returned +15.77% vs +22.35% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (2 years), NATO annualized +30.51% vs +8.09% for VTI. Past performance does not guarantee future results.
Which is riskier, NATO or VTI?
NATO has been the more volatile fund at 18.5% annualized versus 15.3% for VTI. Worst drawdown: NATO -16.0% vs VTI -56.6%.
Should I hold both NATO and VTI?
NATO and VTI have a monthly-return correlation of 0.47, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NATO and VTI?
NATO and VTI share 46 common holdings with a 2.4% weight overlap. Combined, they hold 2825 unique securities.
Which pays a higher dividend, NATO or VTI?
NATO yields 0.42% while VTI yields 1.07%, so VTI currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.