IEO vs. ITA

Last updated Jun 13, 2026

IEO (iShares U.S. Oil & Gas Exploration & Production ETF) and ITA (iShares U.S. Aerospace & Defense ETF) are both exchange-traded funds - IEO is a Energy Equities fund tracking the Dow Jones U.S. Select Oil Exploration & Production Index, while ITA is a Aerospace & Defense fund tracking the Dow Jones U.S. Select Aerospace & Defense Index. Both are passively managed. Over the past 10 years, IEO returned 10.15%/yr vs 15.34%/yr for ITA. A 0.52 correlation means they provide meaningful diversification when combined. IEO charges 0.42%/yr vs 0.38%/yr for ITA.

Performance

IEO vs. ITA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares U.S. Oil & Gas Exploration & Production ETF (IEO) and iShares U.S. Aerospace & Defense ETF (ITA). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IEO achieves a 30.41% return, which is significantly higher than ITA's 8.97% return. Over the past 10 years, IEO has underperformed ITA with an annualized return of 10.15%, while ITA has yielded a comparatively higher 15.34% annualized return.

IEO

• 1D: 1.19%
• 1M: -0.42%
• YTD: 30.41%
• 6M: 25.27%
• 1Y: 30.21%
• 3Y*: 14.23%
• 5Y*: 18.26%
• 10Y*: 10.15%

ITA

• 1D: -0.95%
• 1M: 3.58%
• YTD: 8.97%
• 6M: 11.71%
• 1Y: 30.96%
• 3Y*: 27.30%
• 5Y*: 16.86%
• 10Y*: 15.34%

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

IEO vs. ITA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IEO iShares U.S. Oil & Gas Exploration & Production ETF	30.41%	2.15%	-1.45%	3.57%	57.82%	75.57%	-32.77%	9.63%	-19.44%	0.33%
ITA iShares U.S. Aerospace & Defense ETF	8.97%	48.64%	15.81%	14.33%	9.96%	9.39%	-13.57%	30.51%	-7.22%	35.24%

Correlation

The correlation between IEO and ITA is -0.09, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.09
Correlation (3Y) Calculated over the trailing 3-year period	0.20
Correlation (5Y) Calculated over the trailing 5-year period	0.37
Correlation (10Y) Calculated over the trailing 10-year period	0.45
Correlation (All Time) Calculated using the full available price history since May 5, 2006	0.52

The correlation between IEO and ITA shifts across timeframes, from -0.09 (1 year) to 0.52 (all time), reflecting how their relationship changes across market environments.

IEO vs. ITA - Sectors Allocation Comparison

Sectors	IEO	ITA
Energy	99.3%	-
Basic Materials	0.7%	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Financial Services	-	-
Healthcare	-	-
Industrials	-	99.8%
Real Estate	-	-
Technology	-	0.1%
Utilities	-	-

Return for Risk

IEO vs. ITA — Risk / Return Rank

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

IEO

IEO Risk / Return Rank: 39
IEO Sharpe Ratio Rank: 38
IEO Sortino Ratio Rank: 35
IEO Omega Ratio Rank: 34
IEO Calmar Ratio Rank: 49
IEO Martin Ratio Rank: 39

ITA

ITA Risk / Return Rank: 44
ITA Sharpe Ratio Rank: 47
ITA Sortino Ratio Rank: 48
ITA Omega Ratio Rank: 43
ITA Calmar Ratio Rank: 45
ITA Martin Ratio Rank: 38

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.

IEO vs. ITA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Oil & Gas Exploration & Production ETF (IEO) and iShares U.S. Aerospace & Defense ETF (ITA). 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.

	IEO	ITA	Difference
Sharpe ratio: Return per unit of total volatility	1.20	1.43	-0.23
Sortino ratio: Return per unit of downside risk	1.66	2.11	-0.44
Omega ratio: Gain probability vs. loss probability	1.20	1.25	-0.04
Calmar ratio: Return relative to maximum drawdown	2.12	1.97	+0.16
Martin ratio: Return relative to average drawdown	5.49	5.20	+0.29

IEO vs. ITA - Sharpe Ratio Comparison

The current IEO Sharpe Ratio is 1.20, which is comparable to the ITA Sharpe Ratio of 1.43. The chart below compares the historical Sharpe Ratios of IEO and ITA, 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

IEO vs. ITA - Drawdown Comparison

The maximum IEO drawdown since its inception was -79.17%, which is greater than ITA's maximum drawdown of -59.72%. Use the drawdown chart below to compare losses from any high point for IEO and ITA.

Drawdown Indicators

	IEO	ITA	Difference
Max Drawdown Largest peak-to-trough decline	-79.17%	-59.72%	-19.45%
Max Drawdown (1Y) Largest decline over 1 year	-14.30%	-15.82%	+1.52%
Max Drawdown (3Y) Largest decline over 3 years	-31.46%	-15.82%	-15.64%
Max Drawdown (5Y) Largest decline over 5 years	-31.46%	-18.72%	-12.74%
Max Drawdown (10Y) Largest decline over 10 years	-75.00%	-51.00%	-24.00%
Current Drawdown Current decline from peak	-10.18%	-6.64%	-3.54%
Average Drawdown Average peak-to-trough decline	-26.24%	-9.45%	-16.79%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.52%	5.97%	-0.45%

Volatility

IEO vs. ITA - Volatility Comparison

iShares U.S. Oil & Gas Exploration & Production ETF (IEO) and iShares U.S. Aerospace & Defense ETF (ITA) have volatilities of 8.62% and 9.07%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IEO	ITA	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.62%	9.07%	-0.45%
Volatility (6M) Calculated over the trailing 6-month period	20.33%	18.47%	+1.86%
Volatility (1Y) Calculated over the trailing 1-year period	25.36%	21.74%	+3.62%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	30.61%	20.21%	+10.40%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	34.99%	23.22%	+11.77%

IEO vs. ITA - Expense Ratio Comparison

IEO has a 0.42% expense ratio, which is higher than ITA's 0.38% expense ratio.

Dividends

IEO vs. ITA - Dividend Comparison

IEO's dividend yield for the trailing twelve months is around 2.03%, more than ITA's 0.46% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IEO iShares U.S. Oil & Gas Exploration & Production ETF	2.03%	2.61%	2.63%	3.00%	3.77%	2.62%	3.17%	1.85%	1.67%	0.94%	0.98%	2.03%
ITA iShares U.S. Aerospace & Defense ETF	0.46%	0.55%	0.85%	0.93%	0.95%	0.82%	1.07%	1.54%	1.13%	0.91%	1.07%	1.04%

Frequently Asked Questions

Can I hold both IEO and ITA in my portfolio?

IEO and ITA have a correlation of -0.09, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IEO or ITA?

ITA has higher volatility (9.07%) compared to IEO (8.62%). In terms of maximum drawdown, IEO dropped -79.17% vs ITA's -59.72%.

Which ETF is better, IEO or ITA?

On 10-year performance, ITA leads with 15.34% vs 10.15% for IEO. On fees, ITA is cheaper at 0.38% per year. On volatility, IEO has been the lower-risk option at 8.62%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IEO or ITA?

Over the 10-year period, ITA has performed better with a 15.34% return vs 10.15%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IEO or ITA?

ITA is cheaper with a 0.38% expense ratio, compared with 0.42% for IEO.

Which ETF pays a higher dividend yield, IEO or ITA?

IEO has the higher dividend yield at 2.03%, compared with 0.46% for ITA.

What is the main difference between IEO and ITA?

IEO is categorized as Energy Equities, while ITA is Aerospace & Defense. IEO tracks Dow Jones U.S. Select Oil Exploration & Production Index, while ITA tracks Dow Jones U.S. Select Aerospace & Defense Index. Their fees differ too: 0.42% for IEO and 0.38% for ITA.

Which has better risk-adjusted returns?

ITA currently has the higher Sharpe Ratio (1.43 vs 1.20), 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.