NATO vs VXUS

NATO vs VXUS

Which is better, NATO or VXUS?

Each has led over a different period.

VXUS has a lower expense ratio. NATO led over the full window, VXUS over 1Y.

Lower Fees: VXUSHigher Returns: split

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

MetricNATOVXUS
Expense Ratio0.35%0.05%Best
AUM$98M$158.1B
Dividend Yield0.43%2.51%
Holdings948,747
YTD Return-2.72%+12.88%Best
1Y Return-0.20%+19.97%Best
3Y Return (annualized)-+20.14%
5Y Return (annualized)-+8.87%
Volatility (annualized)19.3%11.6%Best
Max Drawdown-16.0%-13.6%Best
$10,000 over 1.9 years$14,897Best$14,046
Fund FamilyThemes ETFsVanguard (US)
CategoryEquityEquity
StyleLarge Cap BlendLarge Cap Blend
InceptionOct 10, 2024Jan 26, 2011

Not shown on this pair: Top 10 Weight.

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 23, 2026 (1.9 years).

NATO vs VXUS 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 VXUS Performance

Themes Transatlantic Defense ETF (NATO) is an ETF from Themes ETFs and Vanguard Total International Stock ETF (VXUS) is an ETF from Vanguard (US). Over the past year NATO returned -0.20% while VXUS returned +19.97%. Year to date, NATO is down 2.72% versus a gain of 12.88% for VXUS.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

NATO has been the more volatile fund, with annualized monthly volatility of 19.3% compared with 11.6% for VXUS. 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 -13.6% for VXUS. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.66. They move together some of the time, and apart the rest.

Fees and Cost Over Time

NATO charges 0.35% per year while VXUS charges 0.05%. On a $10,000 position that is $35 vs $5 annually, a gap of $30 per year that compounds over a long holding period. On income, NATO currently yields 0.43% against 2.51% for VXUS.

Holdings Overlap

NATO already in VXUS25.6%

At least 25.6% of NATO's money is in holdings VXUS also owns.

Stated as a floor: for VXUS, our book for it covers 88.8% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.

NATO and VXUS share little of their money.

16 positions in common, counted across the 89 positions we hold weights for in NATO and 8,082 in VXUS, against full books of 94 and 8,747.

Top Shared Holdings

StockWeight in NATOWeight in VXUSDifference
RR:LNRolls-Royce Holdings PLC Ord Gbp0.207.92%0.38%7.54%
SAF:PASafran Sa6.33%0.30%6.03%
BAES:LNBae Systems Plc3.99%0.19%3.80%
RHMG:SGRheinmetall Ag2.92%0.14%2.78%
LDO:MILeonardo Spa1.18%0.06%1.12%
SAAB.B:STSaab Ab Npv B0.97%0.04%0.93%
BDRBF:CABombardier Inc0.91%0.05%0.86%
ASELS:TRAselsan Elektronik Sanayi Ve Ticaret As0.44%0.02%0.42%
HAG:DBHensoldt Ag0.28%0.01%0.27%
R3NK:SGRenk Group Ag0.20%0.01%0.19%

25.6% of NATO is already inside VXUS.

You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.

NATOVXUS

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Frequently Asked Questions

Which is cheaper, NATO or VXUS?

NATO has an expense ratio of 0.35% while VXUS charges 0.05%. VXUS is the cheaper option, by $30 a year on a $10,000 investment.

Which performed better, NATO or VXUS?

Over the past year NATO returned -0.20% vs +19.97% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (2 years), NATO annualized +23.34% vs +19.58% for VXUS. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, NATO or VXUS?

NATO has been the more volatile fund at 19.3% annualized versus 11.6% for VXUS. Worst drawdown: NATO -16.0% vs VXUS -13.6%.

Should I hold both NATO and VXUS?

NATO and VXUS have a monthly-return correlation of 0.66, 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 VXUS?

At least 25.6% of NATO's money is in holdings VXUS also owns. Our book for VXUS is partial, so the real figure is this or higher. They hold 16 positions in common, counted across the 89 positions we hold weights for in NATO and 8,082 in VXUS.

Which pays a higher dividend, NATO or VXUS?

NATO yields 0.43% while VXUS yields 2.51%, so VXUS currently pays the higher dividend yield.

Is VXUS better than NATO?

VXUS has a lower expense ratio. NATO led over the full window, VXUS over 1Y. Which one suits a particular account depends on what it is for. This is information, not a recommendation.