ITA vs. MSFT
ITA (iShares U.S. Aerospace & Defense ETF) is Aerospace & Defense fund tracking the Dow Jones U.S. Select Aerospace & Defense Index, while MSFT (Microsoft Corporation) is a stock. Over the past 10 years, ITA returned 15.34%/yr vs 24.39%/yr for MSFT. At a 0.47 correlation, their price movements are largely independent.
Performance
ITA vs. MSFT - Performance Comparison
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Returns By Period
In the year-to-date period, ITA achieves a 8.97% return, which is significantly higher than MSFT's -18.85% return. Over the past 10 years, ITA has underperformed MSFT with an annualized return of 15.34%, while MSFT has yielded a comparatively higher 24.39% annualized return.
ITA
- 1D
- -0.95%
- 1M
- 4.16%
- YTD
- 8.97%
- 6M
- 11.71%
- 1Y
- 30.42%
- 3Y*
- 27.30%
- 5Y*
- 16.86%
- 10Y*
- 15.34%
MSFT
- 1D
- 0.10%
- 1M
- -7.19%
- YTD
- -18.85%
- 6M
- -17.98%
- 1Y
- -17.07%
- 3Y*
- 6.16%
- 5Y*
- 9.56%
- 10Y*
- 24.39%
ITA vs. MSFT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
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% |
MSFT Microsoft Corporation | -18.85% | 15.58% | 12.93% | 58.19% | -28.02% | 52.48% | 42.53% | 57.56% | 20.80% | 40.73% |
Correlation
The correlation between ITA and MSFT is 0.20, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.20 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.24 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.34 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.37 |
Correlation (All Time) Calculated using the full available price history since May 5, 2006 | 0.47 |
Over the past year, the correlation between ITA and MSFT has dropped to 0.20 - well below their long-term average of 0.47, suggesting their price drivers have been diverging.
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Return for Risk
ITA vs. MSFT — Risk / Return Rank
ITA
MSFT
ITA vs. MSFT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Aerospace & Defense ETF (ITA) and Microsoft Corporation (MSFT). 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.
| ITA | MSFT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +2.13 | ||
| Sortino ratioReturn per unit of downside risk | +2.95 | ||
| Omega ratioGain probability vs. loss probability | 1.25 | 0.89 | +0.36 |
| Calmar ratioReturn relative to maximum drawdown | 1.97 | -0.53 | +2.49 |
| Martin ratioReturn relative to average drawdown | 5.20 | -1.08 | +6.28 |
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Drawdowns
ITA vs. MSFT - Drawdown Comparison
The maximum ITA drawdown since its inception was -59.72%, smaller than the maximum MSFT drawdown of -69.38%. Use the drawdown chart below to compare losses from any high point for ITA and MSFT.
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Drawdown Indicators
| ITA | MSFT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -59.72% | -69.38% | +9.66% |
Max Drawdown (1Y)Largest decline over 1 year | -15.82% | -33.91% | +18.09% |
Max Drawdown (3Y)Largest decline over 3 years | -15.82% | -33.91% | +18.09% |
Max Drawdown (5Y)Largest decline over 5 years | -18.72% | -37.15% | +18.43% |
Max Drawdown (10Y)Largest decline over 10 years | -51.00% | -37.15% | -13.85% |
Current DrawdownCurrent decline from peak | -6.64% | -27.46% | +20.82% |
Average DrawdownAverage peak-to-trough decline | -9.45% | -21.78% | +12.33% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 5.97% | 16.48% | -10.51% |
Volatility
ITA vs. MSFT - Volatility Comparison
The current volatility for iShares U.S. Aerospace & Defense ETF (ITA) is 9.07%, while Microsoft Corporation (MSFT) has a volatility of 10.52%. This indicates that ITA experiences smaller price fluctuations and is considered to be less risky than MSFT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| ITA | MSFT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 9.07% | 10.52% | -1.45% |
Volatility (6M)Calculated over the trailing 6-month period | 18.47% | 22.31% | -3.84% |
Volatility (1Y)Calculated over the trailing 1-year period | 21.74% | 25.42% | -3.68% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 20.21% | 26.66% | -6.45% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 23.22% | 27.06% | -3.84% |
Dividends
ITA vs. MSFT - Dividend Comparison
ITA's dividend yield for the trailing twelve months is around 0.46%, less than MSFT's 0.91% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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% |
MSFT Microsoft Corporation | 0.91% | 0.70% | 0.73% | 0.74% | 1.06% | 0.68% | 0.94% | 1.20% | 1.69% | 1.86% | 2.37% | 2.33% |
Frequently Asked Questions
ITA and MSFT have a correlation of 0.20, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
MSFT has higher volatility (10.52%) compared to ITA (9.07%). In terms of maximum drawdown, ITA dropped -59.72% vs MSFT's -69.38%.
ITA currently has the higher Sharpe Ratio (1.43 vs -0.70), 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.
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