IEO vs. XAR

Last updated Apr 2, 2026

Compare and contrast key facts about iShares U.S. Oil & Gas Exploration & Production ETF (IEO) and SPDR S&P Aerospace & Defense ETF (XAR).

IEO and XAR are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. IEO is a passively managed fund by iShares that tracks the performance of the Dow Jones U.S. Select Oil Exploration & Production Index. It was launched on May 5, 2006. XAR is a passively managed fund by State Street that tracks the performance of the S&P Aerospace & Defense Select Industry. It was launched on Sep 28, 2011. Both IEO and XAR are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.

Performance

IEO vs. XAR - 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 SPDR S&P Aerospace & Defense ETF (XAR). The values are adjusted to include any dividend payments, if applicable.

IEO vs. XAR - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IEO iShares U.S. Oil & Gas Exploration & Production ETF	35.85%	2.15%	-1.45%	3.57%	57.82%	75.57%	-32.77%	9.63%	-19.44%	0.33%
XAR SPDR S&P Aerospace & Defense ETF	7.80%	46.15%	23.32%	23.79%	-5.02%	2.31%	6.18%	39.33%	-4.58%	33.00%

Returns By Period

In the year-to-date period, IEO achieves a 35.85% return, which is significantly higher than XAR's 7.80% return. Over the past 10 years, IEO has underperformed XAR with an annualized return of 11.67%, while XAR has yielded a comparatively higher 18.34% annualized return.

IEO

• 1D: -3.37%
• 1M: 7.98%
• YTD: 35.85%
• 6M: 30.59%
• 1Y: 29.93%
• 3Y*: 14.93%
• 5Y*: 22.54%
• 10Y*: 11.67%

XAR

• 1D: 2.35%
• 1M: -10.28%
• YTD: 7.80%
• 6M: 10.02%
• 1Y: 61.14%
• 3Y*: 31.26%
• 5Y*: 16.10%
• 10Y*: 18.34%

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

IEO vs. XAR - Expense Ratio Comparison

IEO has a 0.42% expense ratio, which is higher than XAR's 0.35% expense ratio.

IEO

iShares U.S. Oil & Gas Exploration & Production ETF

XAR

SPDR S&P Aerospace & Defense ETF

Return for Risk

IEO vs. XAR — Risk / Return Rank

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

IEO

IEO Risk / Return Rank: 49
IEO Sharpe Ratio Rank: 52
IEO Sortino Ratio Rank: 49
IEO Omega Ratio Rank: 50
IEO Calmar Ratio Rank: 52
IEO Martin Ratio Rank: 44

XAR

XAR Risk / Return Rank: 91
XAR Sharpe Ratio Rank: 92
XAR Sortino Ratio Rank: 93
XAR Omega Ratio Rank: 87
XAR Calmar Ratio Rank: 93
XAR Martin Ratio Rank: 91

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. XAR - 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 SPDR S&P Aerospace & Defense ETF (XAR). 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.

	IEO	XAR	Difference
Sharpe ratio Return per unit of total volatility	0.98	2.17	-1.19
Sortino ratio Return per unit of downside risk	1.39	2.84	-1.45
Omega ratio Gain probability vs. loss probability	1.20	1.36	-0.16
Calmar ratio Return relative to maximum drawdown	1.40	3.62	-2.22
Martin ratio Return relative to average drawdown	4.35	12.65	-8.30
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IEO vs. XAR - Sharpe Ratio Comparison

The current IEO Sharpe Ratio is 0.98, which is lower than the XAR Sharpe Ratio of 2.17. The chart below compares the historical Sharpe Ratios of IEO and XAR, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.

Sharpe Ratios by Period

	IEO	XAR	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.98	2.17	-1.19
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.74	0.71	+0.03
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.33	0.76	-0.42
Sharpe Ratio (All Time) Calculated using the full available price history	0.17	0.84	-0.67

Correlation

The correlation between IEO and XAR is 0.46, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.

Dividends

IEO vs. XAR - Dividend Comparison

IEO's dividend yield for the trailing twelve months is around 1.95%, more than XAR's 0.34% yield.

	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IEO iShares U.S. Oil & Gas Exploration & Production ETF	1.95%	2.61%	2.63%	3.00%	3.77%	2.62%	3.17%	1.85%	1.67%	0.94%	0.98%	2.03%
XAR SPDR S&P Aerospace & Defense ETF	0.34%	0.40%	0.66%	0.54%	0.50%	0.83%	0.63%	0.75%	1.19%	0.76%	1.09%	2.31%

Drawdowns

IEO vs. XAR - Drawdown Comparison

The maximum IEO drawdown since its inception was -79.17%, which is greater than XAR's maximum drawdown of -46.37%. Use the drawdown chart below to compare losses from any high point for IEO and XAR.

Drawdown Indicators

	IEO	XAR	Difference
Max Drawdown Largest peak-to-trough decline	-79.17%	-46.37%	-32.80%
Max Drawdown (1Y) Largest decline over 1 year	-21.95%	-17.22%	-4.73%
Max Drawdown (5Y) Largest decline over 5 years	-31.46%	-32.40%	+0.94%
Max Drawdown (10Y) Largest decline over 10 years	-75.00%	-46.37%	-28.63%
Current Drawdown Current decline from peak	-6.43%	-11.16%	+4.73%
Average Drawdown Average peak-to-trough decline	-26.42%	-6.76%	-19.66%
Ulcer Index Depth and duration of drawdowns from previous peaks	7.07%	4.93%	+2.14%

Volatility

IEO vs. XAR - Volatility Comparison

The current volatility for iShares U.S. Oil & Gas Exploration & Production ETF (IEO) is 7.35%, while SPDR S&P Aerospace & Defense ETF (XAR) has a volatility of 10.57%. This indicates that IEO experiences smaller price fluctuations and is considered to be less risky than XAR based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IEO	XAR	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.35%	10.57%	-3.22%
Volatility (6M) Calculated over the trailing 6-month period	17.66%	21.39%	-3.73%
Volatility (1Y) Calculated over the trailing 1-year period	30.67%	28.34%	+2.33%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	30.64%	22.93%	+7.71%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	34.94%	24.35%	+10.59%