ITA vs. NLY
ITA (iShares U.S. Aerospace & Defense ETF) is Aerospace & Defense fund tracking the Dow Jones U.S. Select Aerospace & Defense Index, while NLY (Annaly Capital Management, Inc.) is a stock. Over the past 10 years, ITA returned 14.86%/yr vs 5.29%/yr for NLY. At a 0.36 correlation, their price movements are largely independent.
Performance
ITA vs. NLY - Performance Comparison
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Returns By Period
In the year-to-date period, ITA achieves a 5.92% return, which is significantly higher than NLY's -3.07% return. Over the past 10 years, ITA has outperformed NLY with an annualized return of 14.86%, while NLY has yielded a comparatively lower 5.29% annualized return.
ITA
- 1D
- -0.95%
- 1M
- 1.69%
- YTD
- 5.92%
- 6M
- 11.28%
- 1Y
- 25.56%
- 3Y*
- 26.35%
- 5Y*
- 16.26%
- 10Y*
- 14.86%
NLY
- 1D
- -1.23%
- 1M
- -7.30%
- YTD
- -3.07%
- 6M
- -1.18%
- 1Y
- 25.88%
- 3Y*
- 16.16%
- 5Y*
- 1.37%
- 10Y*
- 5.29%
ITA vs. NLY - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
ITA iShares U.S. Aerospace & Defense ETF | 5.92% | 48.64% | 15.81% | 14.33% | 9.96% | 9.39% | -13.57% | 30.51% | -7.22% | 35.24% |
NLY Annaly Capital Management, Inc. | -3.07% | 40.00% | 8.07% | 4.94% | -21.41% | 2.48% | 2.38% | 7.22% | -7.22% | 31.92% |
Correlation
The correlation between ITA and NLY is 0.22, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.22 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.31 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.41 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.39 |
Correlation (All Time) Calculated using the full available price history since May 5, 2006 | 0.36 |
The correlation between ITA and NLY shifts across timeframes, from 0.22 (1 year) to 0.41 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
ITA vs. NLY — Risk / Return Rank
ITA
NLY
ITA vs. NLY - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Aerospace & Defense ETF (ITA) and Annaly Capital Management, Inc. (NLY). 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.
| ITA | NLY | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.19 | ||
| Sortino ratioReturn per unit of downside risk | -0.16 | ||
| Omega ratioGain probability vs. loss probability | 1.21 | 1.24 | -0.03 |
| Calmar ratioReturn relative to maximum drawdown | 1.62 | 1.75 | -0.12 |
| Martin ratioReturn relative to average drawdown | 4.35 | 5.22 | -0.87 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| ITA | NLY | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.22 | 1.40 | -0.19 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.81 | 0.05 | +0.76 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.64 | 0.19 | +0.46 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.51 | 0.30 | +0.20 |
Drawdowns
ITA vs. NLY - Drawdown Comparison
The maximum ITA drawdown since its inception was -59.72%, roughly equal to the maximum NLY drawdown of -60.09%. Use the drawdown chart below to compare losses from any high point for ITA and NLY.
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Drawdown Indicators
| ITA | NLY | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -59.72% | -60.09% | +0.37% |
Max Drawdown (1Y)Largest decline over 1 year | -15.82% | -14.88% | -0.94% |
Max Drawdown (3Y)Largest decline over 3 years | -15.82% | -26.70% | +10.88% |
Max Drawdown (5Y)Largest decline over 5 years | -18.72% | -51.97% | +33.25% |
Max Drawdown (10Y)Largest decline over 10 years | -51.00% | -60.09% | +9.09% |
Current DrawdownCurrent decline from peak | -9.25% | -11.17% | +1.92% |
Average DrawdownAverage peak-to-trough decline | -9.46% | -13.75% | +4.29% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 5.89% | 4.97% | +0.92% |
Volatility
ITA vs. NLY - Volatility Comparison
iShares U.S. Aerospace & Defense ETF (ITA) has a higher volatility of 7.09% compared to Annaly Capital Management, Inc. (NLY) at 3.97%. This indicates that ITA's price experiences larger fluctuations and is considered to be riskier than NLY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| ITA | NLY | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 7.09% | 3.97% | +3.12% |
Volatility (6M)Calculated over the trailing 6-month period | 17.68% | 14.66% | +3.02% |
Volatility (1Y)Calculated over the trailing 1-year period | 21.12% | 18.56% | +2.56% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 20.07% | 25.54% | -5.47% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 23.17% | 28.12% | -4.95% |
Dividends
ITA vs. NLY - Dividend Comparison
ITA's dividend yield for the trailing twelve months is around 0.47%, less than NLY's 13.36% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ITA iShares U.S. Aerospace & Defense ETF | 0.47% | 0.55% | 0.85% | 0.93% | 0.95% | 0.82% | 1.07% | 1.54% | 1.13% | 0.91% | 1.07% | 1.04% |
NLY Annaly Capital Management, Inc. | 13.36% | 12.52% | 14.21% | 13.42% | 16.70% | 11.25% | 10.77% | 11.15% | 12.22% | 10.09% | 12.04% | 12.79% |
Frequently Asked Questions
ITA and NLY have a correlation of 0.22, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
ITA has higher volatility (7.09%) compared to NLY (3.97%). In terms of maximum drawdown, ITA dropped -59.72% vs NLY's -60.09%.
NLY currently has the higher Sharpe Ratio (1.40 vs 1.22), 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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