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iShares Defense Industrials Active ETF (IDEF) Sharpe Ratio: 0.73

ETF · Currency in USD · Last updated Jun 24, 2026

The iShares Defense Industrials Active ETF aims to maximize total return by investing in companies positioned to benefit from increased global defense and security spending, utilizing an active approach to gain global exposure across aerospace, defense, infrastructure, and cybersecurity sectors.

IDEF's Sharpe Ratio of 0.73 indicates that for each unit of volatility, it generates 0.73 units of excess return above the risk-free rate. The ratio is calculated using historical daily returns over the past 12 months (as of Jun 24, 2026).

Sharpe uses total volatility (standard deviation) which includes both upside and downside price movements, making it useful for comparing risk-adjusted returns across different assets. For how to read this number and when it can mislead, see Sharpe Ratio Explained.

IDEF Sharpe Ratio Rank

IDEF Sharpe Ratio Rank: 21.822
Below Average

IDEF ranks above 21.8% of all investments in our database based on Sharpe Ratio over the past 12 months, indicating below-average returns relative to volatility. Securities are ranked from 0 (worst) to 100 (best).

What moves the rank

  • Strong returns with low total volatility → Higher rank
  • High volatility (both upside and downside) → Lower rank
  • Consistent returns → Higher rank than volatile returns of same magnitude
  • Sharp drawdowns increase volatility → Lower rank

What you can do with this information

  • Returns may not adequately compensate for volatility taken
  • Consider smaller allocation given below-average risk-adjusted profile
  • Explore higher-ranked investments with better consistency
  • Assess whether the volatility profile aligns with your portfolio goals

IDEF Sharpe Ratio Market Positioning

The chart shows IDEF's Sharpe Ratio relative to all ETFs on our platform, with color zones indicating percentile rankings. Higher ratios indicate better risk-adjusted returns.

  • Red zone (bottom 25%): 0.83 or lower
  • Yellow zone (middle 50%): 0.83 to 2.16
  • Green zone (top 25%): 2.16 or higher
  • Top 1%: 7.04+
  • Median: 1.57 — half of all investments score higher

How it compares to other similar ETFs

The table compares iShares Defense Industrials Active ETF's Sharpe Ratio with other ETFs in the Aerospace & Defense category across multiple time periods, showing how IDEF's risk-adjusted performance compares to similar funds.

Data shows 1-, 5-, and 10-year periods, plus each fund's all-time average, as of Jun 24, 2026.

SymbolName1Y Sharpe Ratio5Y Sharpe Ratio10Y Sharpe RatioAll Time Sharpe Ratio
UFOProcure Space ETF1.89
GCADGabelli Commercial Aerospace & Defense ETF1.83
ARKXARK Space Exploration & Innovation ETF1.38
ITAiShares U.S. Aerospace & Defense ETF1.36
XARSPDR S&P Aerospace & Defense ETF1.34
PPAInvesco Aerospace & Defense ETF1.30
FOWFPacer Solactive Whitney Future of Warfare ETF1.29
DFENDirexion Daily Aerospace & Defense Bull 3X Shares1.08
NATOThemes Transatlantic Defense ETF0.81
IDEFiShares Defense Industrials Active ETF0.73

S&P 500 Index

How to choose period

Historical Sharpe Ratio

The chart shows IDEF's rolling Sharpe ratio over time compared to your chosen benchmark. Rising trends indicate improving returns relative to total volatility, while declining trends may signal deteriorating risk-adjusted performance or increased volatility. Use multiple timeframes to distinguish short-term fluctuations from long-term patterns.

Identify market cycles by observing when IDEF consistently outperforms (line above benchmark), underperforms (below benchmark), or aligns with the benchmark.

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Sharpe Ratio Calculator

How does IDEF fit in your portfolio?

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