NATO: THEMES TRANSATLANTIC DEFENSE ETF
What this ETF is trying to do
The THEMES Transatlantic Defense ETF (ticker: NATO) is an exchange-traded fund designed to invest in companies related to transatlantic defense. It holds a variety of stocks, including many large aerospace and defense corporations.
What the numbers show
As of October 9, 2026, the current price of NATO is $36.14. Looking at historical performance, we can see how the share price has moved:
• Year-to-Date (YTD) Price Return: The share price has declined by approximately 5.51% since the start of the year.
• One-Year Price Return: Over the last 12 months, the share price has decreased by approximately 7.12%.
• Estimated Price Comparison: The current price of $36.14 is lower than the estimated price from roughly one year ago, which was approximately $38.91.
It is important to distinguish between price return and total return. Price return only tracks the change in the share price. Total return includes both the price change and any distributions paid out. For NATO, the one-year total return was approximately -6.69%, which is different from the one-year price return of -7.12%.
Income and distribution explanation
NATO provides a distribution yield of approximately 0.48%. This represents the cash distributions relative to the ETF's price. The trailing distributions were $0.1725.
The data shows that the distribution frequency is "irregular" or "less frequent," with only one payout recorded in the last 12 months. Because these payments do not happen on a regular schedule, this ETF may not be a consistent source of cash income.
NAV erosion explanation
The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.
However, we can look at the "erosion-risk score," which is 75. This is labeled as "mild price erosion." This means the fund has shown some mild decline in its market price, but it has not triggered a "severe erosion-risk flag."
Top Holdings
The following are the top holdings in the portfolio (note that this is a partial list):
• RTX CORP: 8.30%
• ROLLS-ROYCE HOLDINGS PLC: 8.11%
• GE AEROSPACE: 7.67%
• BOEING CO: 7.31%
• SAFRAN SA: 6.54%
• AIRBUS SE: 6.32%
• LOCKHEED MARTIN CORP: 4.80%
• HOWMET AEROSPACE INC: 4.23%
• BAE SYSTEMS PLC: 3.89%
• GENERAL DYNAMICS CORP: 3.88%
Please remember that holdings can change over time.
Pros
• Provides exposure to a specific sector (transatlantic defense).
• Includes large, well-known companies in the aerospace and defense industry.
Cons
• The share price has shown a decline over the last year and year-to-date.
• Distributions are irregular and infrequent.
• The fund shows signs of mild price erosion.
Beginner takeaway
When looking at NATO, it is important to notice that the share price has been falling recently. While the fund pays a distribution, the yield is relatively low and the payments do not happen regularly. Investors should look at both the price return and the total return to get a full picture of how the fund has performed.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | RTX CORP | RTX | 8.30% |
| 2 | ROLLS-ROYCE HOLDINGS PLC | n/a | 8.11% |
| 3 | GE AEROSPACE | GE | 7.67% |
| 4 | BOEING CO | BA | 7.31% |
| 5 | SAFRAN SA | n/a | 6.54% |
| 6 | AIRBUS SE | n/a | 6.32% |
| 7 | LOCKHEED MARTIN CORP | LMT | 4.80% |
| 8 | HOWMET AEROSPACE INC | HWM | 4.23% |
| 9 | BAE SYSTEMS PLC | n/a | 3.89% |
| 10 | GENERAL DYNAMICS CORP | GD | 3.88% |