ITA vs. SPY

Last updated Jun 14, 2026

ITA (iShares U.S. Aerospace & Defense ETF) and SPY (State Street SPDR S&P 500 ETF) are both exchange-traded funds - ITA is a Aerospace & Defense fund tracking the Dow Jones U.S. Select Aerospace & Defense Index, while SPY is a S&P 500 fund tracking the S&P 500 Index. Both are passively managed. Over the past 10 years, ITA returned 15.34%/yr vs 15.42%/yr for SPY. A 0.75 correlation means they provide meaningful diversification when combined. ITA charges 0.38%/yr vs 0.09%/yr for SPY.

Performance

ITA vs. SPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares U.S. Aerospace & Defense ETF (ITA) and State Street SPDR S&P 500 ETF (SPY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with ITA having a 8.97% return and SPY slightly higher at 9.07%. Both investments have delivered pretty close results over the past 10 years, with ITA having a 15.34% annualized return and SPY not far ahead at 15.42%.

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%

SPY

• 1D: 0.54%
• 1M: -0.86%
• YTD: 9.07%
• 6M: 9.42%
• 1Y: 25.67%
• 3Y*: 20.86%
• 5Y*: 13.36%
• 10Y*: 15.42%

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

ITA vs. SPY - 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%
SPY State Street SPDR S&P 500 ETF	9.07%	17.72%	24.89%	26.18%	-18.18%	28.73%	18.33%	31.22%	-4.57%	21.71%

Correlation

The correlation between ITA and SPY is 0.54, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.54
Correlation (3Y) Calculated over the trailing 3-year period	0.55
Correlation (5Y) Calculated over the trailing 5-year period	0.64
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	0.75

Over the past year, the correlation between ITA and SPY has dropped to 0.54 - well below their long-term average of 0.75, suggesting their price drivers have been diverging.

ITA vs. SPY - Sectors Allocation Comparison

Sectors	ITA	SPY
Industrials	99.8%	7.8%
Technology	0.1%	39.0%
Basic Materials	-	1.7%
Communication Services	-	10.6%
Consumer Cyclical	-	9.9%
Consumer Defensive	-	4.5%
Energy	-	3.1%
Financial Services	-	11.1%
Healthcare	-	8.3%
Real Estate	-	1.8%
Utilities	-	2.1%

Return for Risk

ITA vs. SPY — 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

SPY

SPY Risk / Return Rank: 70
SPY Sharpe Ratio Rank: 71
SPY Sortino Ratio Rank: 69
SPY Omega Ratio Rank: 71
SPY Calmar Ratio Rank: 63
SPY Martin Ratio Rank: 76

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. SPY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Aerospace & Defense ETF (ITA) and State Street SPDR S&P 500 ETF (SPY). 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	SPY	Difference
Sharpe ratio: Return per unit of total volatility	1.43	1.98	-0.55
Sortino ratio: Return per unit of downside risk	2.11	2.68	-0.58
Omega ratio: Gain probability vs. loss probability	1.25	1.36	-0.11
Calmar ratio: Return relative to maximum drawdown	1.97	2.74	-0.78
Martin ratio: Return relative to average drawdown	5.20	12.39	-7.19

ITA vs. SPY - Sharpe Ratio Comparison

The current ITA Sharpe Ratio is 1.43, which is comparable to the SPY Sharpe Ratio of 1.98. The chart below compares the historical Sharpe Ratios of ITA and SPY, 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. SPY - Drawdown Comparison

The maximum ITA drawdown since its inception was -59.72%, which is greater than SPY's maximum drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for ITA and SPY.

Drawdown Indicators

	ITA	SPY	Difference
Max Drawdown Largest peak-to-trough decline	-59.72%	-55.19%	-4.53%
Max Drawdown (1Y) Largest decline over 1 year	-15.82%	-8.88%	-6.94%
Max Drawdown (3Y) Largest decline over 3 years	-15.82%	-18.76%	+2.94%
Max Drawdown (5Y) Largest decline over 5 years	-18.72%	-24.50%	+5.78%
Max Drawdown (10Y) Largest decline over 10 years	-51.00%	-33.72%	-17.28%
Current Drawdown Current decline from peak	-6.64%	-2.35%	-4.29%
Average Drawdown Average peak-to-trough decline	-9.45%	-9.04%	-0.41%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.97%	1.97%	+4.00%

Volatility

ITA vs. SPY - Volatility Comparison

iShares U.S. Aerospace & Defense ETF (ITA) has a higher volatility of 9.07% compared to State Street SPDR S&P 500 ETF (SPY) at 4.34%. This indicates that ITA's price experiences larger fluctuations and is considered to be riskier than SPY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ITA	SPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.07%	4.34%	+4.73%
Volatility (6M) Calculated over the trailing 6-month period	18.47%	9.58%	+8.89%
Volatility (1Y) Calculated over the trailing 1-year period	21.74%	12.29%	+9.45%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.21%	17.12%	+3.09%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.22%	17.96%	+5.26%

ITA vs. SPY - Expense Ratio Comparison

ITA has a 0.38% expense ratio, which is higher than SPY's 0.09% expense ratio.

Dividends

ITA vs. SPY - Dividend Comparison

ITA's dividend yield for the trailing twelve months is around 0.46%, less than SPY's 1.00% 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%
SPY State Street SPDR S&P 500 ETF	1.00%	1.07%	1.21%	1.40%	1.65%	1.20%	1.52%	1.75%	2.04%	1.80%	2.03%	2.06%

Frequently Asked Questions

Can I hold both ITA and SPY in my portfolio?

ITA and SPY have a correlation of 0.54, 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 SPY?

ITA has higher volatility (9.07%) compared to SPY (4.34%). In terms of maximum drawdown, ITA dropped -59.72% vs SPY's -55.19%.

Which ETF is better, ITA or SPY?

On 10-year performance, SPY leads with 15.42% vs 15.34% for ITA. On fees, SPY is cheaper at 0.09% per year. On volatility, SPY has been the lower-risk option at 4.34%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ITA or SPY?

Over the 10-year period, SPY has performed better with a 15.42% return vs 15.34%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ITA or SPY?

SPY is cheaper with a 0.09% expense ratio, compared with 0.38% for ITA.

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

SPY has the higher dividend yield at 1.00%, compared with 0.46% for ITA.

What is the main difference between ITA and SPY?

ITA is categorized as Aerospace & Defense, while SPY is S&P 500. ITA tracks Dow Jones U.S. Select Aerospace & Defense Index, while SPY tracks S&P 500 Index. They also come from different issuers: iShares and State Street. Their fees differ too: 0.38% for ITA and 0.09% for SPY.

Which has better risk-adjusted returns?

SPY currently has the higher Sharpe Ratio (1.98 vs 1.43), 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.