ITA vs. PHO

Last updated Jun 13, 2026

ITA (iShares U.S. Aerospace & Defense ETF) and PHO (Invesco Water Resources ETF) are both exchange-traded funds - ITA is a Aerospace & Defense fund tracking the Dow Jones U.S. Select Aerospace & Defense Index, while PHO is a Water Equities fund tracking the NASDAQ OMX US Water Index. Both are passively managed. Over the past 10 years, ITA returned 15.34%/yr vs 11.71%/yr for PHO. A 0.72 correlation means they provide meaningful diversification when combined. ITA charges 0.38%/yr vs 0.60%/yr for PHO.

Performance

ITA vs. PHO - Performance Comparison

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

Returns By Period

In the year-to-date period, ITA achieves a 8.97% return, which is significantly higher than PHO's -4.97% return. Over the past 10 years, ITA has outperformed PHO with an annualized return of 15.34%, while PHO has yielded a comparatively lower 11.71% 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%

PHO

• 1D: 0.63%
• 1M: 2.30%
• YTD: -4.97%
• 6M: -6.44%
• 1Y: -1.80%
• 3Y*: 7.13%
• 5Y*: 5.17%
• 10Y*: 11.71%

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

ITA vs. PHO - 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%
PHO Invesco Water Resources ETF	-4.97%	7.62%	8.59%	18.85%	-14.86%	31.28%	20.83%	37.57%	-6.40%	23.55%

Correlation

The correlation between ITA and PHO is 0.46, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.46
Correlation (3Y) Calculated over the trailing 3-year period	0.54
Correlation (5Y) Calculated over the trailing 5-year period	0.60
Correlation (10Y) Calculated over the trailing 10-year period	0.65
Correlation (All Time) Calculated using the full available price history since May 5, 2006	0.72

Over the past year, the correlation between ITA and PHO has dropped to 0.46 - well below their long-term average of 0.72, suggesting their price drivers have been diverging.

ITA vs. PHO - Sectors Allocation Comparison

Sectors	ITA	PHO
Industrials	99.8%	56.3%
Technology	0.1%	13.1%
Basic Materials	-	8.4%
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	0.0%
Healthcare	-	8.2%
Real Estate	-	-
Utilities	-	14.1%

Return for Risk

ITA vs. PHO — Risk / Return Rank

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

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

PHO

PHO Risk / Return Rank: 7
PHO Sharpe Ratio Rank: 7
PHO Sortino Ratio Rank: 7
PHO Omega Ratio Rank: 7
PHO Calmar Ratio Rank: 7
PHO Martin Ratio Rank: 7

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.

ITA vs. PHO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Aerospace & Defense ETF (ITA) and Invesco Water Resources ETF (PHO). 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	PHO	Difference
Sharpe ratio: Return per unit of total volatility	1.43	-0.21	+1.65
Sortino ratio: Return per unit of downside risk	2.11	-0.20	+2.30
Omega ratio: Gain probability vs. loss probability	1.25	0.98	+0.27
Calmar ratio: Return relative to maximum drawdown	1.97	-0.23	+2.20
Martin ratio: Return relative to average drawdown	5.20	-0.58	+5.78

ITA vs. PHO - Sharpe Ratio Comparison

The current ITA Sharpe Ratio is 1.43, which is higher than the PHO Sharpe Ratio of -0.21. The chart below compares the historical Sharpe Ratios of ITA and PHO, 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

ITA vs. PHO - Drawdown Comparison

The maximum ITA drawdown since its inception was -59.72%, which is greater than PHO's maximum drawdown of -55.62%. Use the drawdown chart below to compare losses from any high point for ITA and PHO.

Drawdown Indicators

	ITA	PHO	Difference
Max Drawdown Largest peak-to-trough decline	-59.72%	-55.62%	-4.10%
Max Drawdown (1Y) Largest decline over 1 year	-15.82%	-13.78%	-2.04%
Max Drawdown (3Y) Largest decline over 3 years	-15.82%	-19.19%	+3.37%
Max Drawdown (5Y) Largest decline over 5 years	-18.72%	-28.60%	+9.88%
Max Drawdown (10Y) Largest decline over 10 years	-51.00%	-34.92%	-16.08%
Current Drawdown Current decline from peak	-6.64%	-10.21%	+3.57%
Average Drawdown Average peak-to-trough decline	-9.45%	-10.18%	+0.73%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.97%	5.59%	+0.38%

Volatility

ITA vs. PHO - Volatility Comparison

iShares U.S. Aerospace & Defense ETF (ITA) has a higher volatility of 9.07% compared to Invesco Water Resources ETF (PHO) at 4.41%. This indicates that ITA's price experiences larger fluctuations and is considered to be riskier than PHO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ITA	PHO	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.07%	4.41%	+4.66%
Volatility (6M) Calculated over the trailing 6-month period	18.47%	11.15%	+7.32%
Volatility (1Y) Calculated over the trailing 1-year period	21.74%	15.12%	+6.62%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.21%	18.40%	+1.81%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.22%	19.46%	+3.76%

ITA vs. PHO - Expense Ratio Comparison

ITA has a 0.38% expense ratio, which is lower than PHO's 0.60% expense ratio.

Dividends

ITA vs. PHO - Dividend Comparison

ITA's dividend yield for the trailing twelve months is around 0.46%, less than PHO's 0.58% 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%
PHO Invesco Water Resources ETF	0.58%	0.54%	0.45%	0.59%	0.49%	0.20%	0.39%	0.43%	0.46%	0.34%	0.47%	0.75%

Frequently Asked Questions

Can I hold both ITA and PHO in my portfolio?

ITA and PHO have a correlation of 0.46, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ITA or PHO?

ITA has higher volatility (9.07%) compared to PHO (4.41%). In terms of maximum drawdown, ITA dropped -59.72% vs PHO's -55.62%.

Which ETF is better, ITA or PHO?

On 10-year performance, ITA leads with 15.34% vs 11.71% for PHO. On fees, ITA is cheaper at 0.38% per year. On volatility, PHO has been the lower-risk option at 4.41%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ITA or PHO?

Over the 10-year period, ITA has performed better with a 15.34% return vs 11.71%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ITA or PHO?

ITA is cheaper with a 0.38% expense ratio, compared with 0.60% for PHO.

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

PHO has the higher dividend yield at 0.58%, compared with 0.46% for ITA.

What is the main difference between ITA and PHO?

ITA is categorized as Aerospace & Defense, while PHO is Water Equities. ITA tracks Dow Jones U.S. Select Aerospace & Defense Index, while PHO tracks NASDAQ OMX US Water Index. They also come from different issuers: iShares and Invesco. Their fees differ too: 0.38% for ITA and 0.60% for PHO.

Which has better risk-adjusted returns?

ITA currently has the higher Sharpe Ratio (1.43 vs -0.21), 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.