GARP vs. SHLD

Last updated Jun 14, 2026

GARP (iShares MSCI USA Quality GARP ETF) and SHLD (Global X Defense Tech ETF) are both exchange-traded funds - GARP is a Large Cap Growth Equities fund tracking the MSCI USA Quality GARP Select Index, while SHLD is a Aerospace & Defense fund tracking the Global X Defense Tech Index. Both are passively managed. Over the past year, GARP returned 38.39% vs 8.26% for SHLD. At a 0.42 correlation, their price movements are largely independent. GARP charges 0.15%/yr vs 0.50%/yr for SHLD.

Performance

GARP vs. SHLD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI USA Quality GARP ETF (GARP) and Global X Defense Tech ETF (SHLD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, GARP achieves a 16.96% return, which is significantly higher than SHLD's -1.50% return.

GARP

• 1D: 0.21%
• 1M: 3.69%
• YTD: 16.96%
• 6M: 17.70%
• 1Y: 38.39%
• 3Y*: 31.05%
• 5Y*: 18.96%
• 10Y*: —

SHLD

• 1D: -2.04%
• 1M: 2.37%
• YTD: -1.50%
• 6M: -1.03%
• 1Y: 8.26%
• 3Y*: —
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

GARP vs. SHLD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
GARP iShares MSCI USA Quality GARP ETF	16.96%	21.49%	37.42%	11.73%
SHLD Global X Defense Tech ETF	-1.50%	74.16%	35.03%	12.89%

Correlation

The correlation between GARP and SHLD is 0.41, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.41
Correlation (All Time) Calculated using the full available price history since Sep 13, 2023	0.42

GARP vs. SHLD - Sectors Allocation Comparison

Sectors	GARP	SHLD
Technology	55.2%	12.2%
Communication Services	11.9%	-
Consumer Cyclical	8.5%	-
Financial Services	7.2%	-
Industrials	6.6%	87.8%
Healthcare	5.3%	-
Energy	2.9%	-
Utilities	1.2%	-
Basic Materials	1.1%	-
Real Estate	0.4%	-
Consumer Defensive	-	-

Return for Risk

GARP vs. SHLD — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

GARP

GARP Risk / Return Rank: 64
GARP Sharpe Ratio Rank: 69
GARP Sortino Ratio Rank: 63
GARP Omega Ratio Rank: 63
GARP Calmar Ratio Rank: 61
GARP Martin Ratio Rank: 65

SHLD

SHLD Risk / Return Rank: 16
SHLD Sharpe Ratio Rank: 17
SHLD Sortino Ratio Rank: 17
SHLD Omega Ratio Rank: 16
SHLD Calmar Ratio Rank: 16
SHLD Martin Ratio Rank: 16

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

GARP vs. SHLD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI USA Quality GARP ETF (GARP) and Global X Defense Tech ETF (SHLD). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	GARP	SHLD	Difference
Sharpe ratio: Return per unit of total volatility	1.93	0.43	+1.50
Sortino ratio: Return per unit of downside risk	2.53	0.78	+1.75
Omega ratio: Gain probability vs. loss probability	1.33	1.09	+0.24
Calmar ratio: Return relative to maximum drawdown	2.65	0.52	+2.13
Martin ratio: Return relative to average drawdown	10.37	1.28	+9.08

GARP vs. SHLD - Sharpe Ratio Comparison

The current GARP Sharpe Ratio is 1.93, which is higher than the SHLD Sharpe Ratio of 0.43. The chart below compares the historical Sharpe Ratios of GARP and SHLD, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

GARP vs. SHLD - Drawdown Comparison

The maximum GARP drawdown since its inception was -31.34%, which is greater than SHLD's maximum drawdown of -20.10%. Use the drawdown chart below to compare losses from any high point for GARP and SHLD.

Drawdown Indicators

	GARP	SHLD	Difference
Max Drawdown Largest peak-to-trough decline	-31.34%	-20.10%	-11.24%
Max Drawdown (1Y) Largest decline over 1 year	-13.69%	-20.10%	+6.41%
Max Drawdown (3Y) Largest decline over 3 years	-23.73%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-30.61%	—	—
Current Drawdown Current decline from peak	-4.27%	-18.20%	+13.93%
Average Drawdown Average peak-to-trough decline	-7.35%	-3.34%	-4.01%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.49%	8.12%	-4.63%

Volatility

GARP vs. SHLD - Volatility Comparison

The current volatility for iShares MSCI USA Quality GARP ETF (GARP) is 7.61%, while Global X Defense Tech ETF (SHLD) has a volatility of 9.05%. This indicates that GARP experiences smaller price fluctuations and is considered to be less risky than SHLD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	GARP	SHLD	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.61%	9.05%	-1.44%
Volatility (6M) Calculated over the trailing 6-month period	15.12%	19.94%	-4.82%
Volatility (1Y) Calculated over the trailing 1-year period	18.79%	24.55%	-5.76%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.11%	21.29%	+0.82%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.95%	21.29%	+2.66%

GARP vs. SHLD - Expense Ratio Comparison

GARP has a 0.15% expense ratio, which is lower than SHLD's 0.50% expense ratio.

Dividends

GARP vs. SHLD - Dividend Comparison

GARP's dividend yield for the trailing twelve months is around 0.26%, less than SHLD's 0.56% yield.

Position	TTM	2025	2024	2023	2022	2021	2020
GARP iShares MSCI USA Quality GARP ETF	0.26%	0.31%	0.38%	0.75%	1.85%	0.67%	0.75%
SHLD Global X Defense Tech ETF	0.56%	0.55%	0.53%	0.26%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both GARP and SHLD in my portfolio?

GARP and SHLD have a correlation of 0.41, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, GARP or SHLD?

SHLD has higher volatility (9.05%) compared to GARP (7.61%). In terms of maximum drawdown, GARP dropped -31.34% vs SHLD's -20.10%.

Which ETF is better, GARP or SHLD?

On 1-year performance, GARP leads with 38.39% vs 8.26% for SHLD. On fees, GARP is cheaper at 0.15% per year. On volatility, GARP has been the lower-risk option at 7.61%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, GARP or SHLD?

Over the 1-year period, GARP has performed better with a 38.39% return vs 8.26%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, GARP or SHLD?

GARP is cheaper with a 0.15% expense ratio, compared with 0.50% for SHLD.

Which ETF pays a higher dividend yield, GARP or SHLD?

SHLD has the higher dividend yield at 0.56%, compared with 0.26% for GARP.

What is the main difference between GARP and SHLD?

GARP is categorized as Large Cap Growth Equities, while SHLD is Aerospace & Defense. GARP tracks MSCI USA Quality GARP Select Index, while SHLD tracks Global X Defense Tech Index. They also come from different issuers: iShares and Global X. Their fees differ too: 0.15% for GARP and 0.50% for SHLD.

Which has better risk-adjusted returns?

GARP currently has the higher Sharpe Ratio (1.93 vs 0.43), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.