ITA vs. VGT
Compare and contrast key facts about iShares U.S. Aerospace & Defense ETF (ITA) and Vanguard Information Technology ETF (VGT).
ITA and VGT are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. ITA is a passively managed fund by iShares that tracks the performance of the Dow Jones U.S. Select Aerospace & Defense Index. It was launched on May 5, 2006. VGT is a passively managed fund by Vanguard that tracks the performance of the MSCI US Investable Market Information Technology 25/50 Index. It was launched on Jan 26, 2004. Both ITA and VGT are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: ITA or VGT.
Key characteristics
| ITA | VGT | |
|---|---|---|
| YTD Return | 2.11% | 2.61% |
| 1Y Return | 16.41% | 33.75% |
| 3Y Return (Ann) | 7.76% | 9.36% |
| 5Y Return (Ann) | 5.50% | 19.53% |
| 10Y Return (Ann) | 10.47% | 19.98% |
| Sharpe Ratio | 1.01 | 1.96 |
| Daily Std Dev | 13.84% | 18.17% |
| Max Drawdown | -59.72% | -54.63% |
| Current Drawdown | -2.21% | -6.33% |
Correlation
The correlation between ITA and VGT is 0.66, 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.
Performance
ITA vs. VGT - Performance Comparison
In the year-to-date period, ITA achieves a 2.11% return, which is significantly lower than VGT's 2.61% return. Over the past 10 years, ITA has underperformed VGT with an annualized return of 10.47%, while VGT has yielded a comparatively higher 19.98% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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ITA vs. VGT - Expense Ratio Comparison
ITA has a 0.42% expense ratio, which is higher than VGT's 0.10% expense ratio.
Risk-Adjusted Performance
ITA vs. VGT - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Aerospace & Defense ETF (ITA) and Vanguard Information Technology ETF (VGT). 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.
Dividends
ITA vs. VGT - Dividend Comparison
ITA's dividend yield for the trailing twelve months is around 0.90%, more than VGT's 0.73% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ITA iShares U.S. Aerospace & Defense ETF | 0.90% | 0.93% | 0.95% | 0.82% | 1.07% | 1.53% | 1.13% | 0.91% | 1.07% | 1.03% | 1.20% | 1.13% |
VGT Vanguard Information Technology ETF | 0.73% | 0.65% | 0.91% | 0.64% | 0.82% | 1.11% | 1.29% | 0.99% | 1.31% | 1.28% | 1.12% | 1.05% |
Drawdowns
ITA vs. VGT - Drawdown Comparison
The maximum ITA drawdown since its inception was -59.72%, which is greater than VGT's maximum drawdown of -54.63%. Use the drawdown chart below to compare losses from any high point for ITA and VGT. For additional features, visit the drawdowns tool.
Volatility
ITA vs. VGT - Volatility Comparison
The current volatility for iShares U.S. Aerospace & Defense ETF (ITA) is 2.99%, while Vanguard Information Technology ETF (VGT) has a volatility of 5.65%. This indicates that ITA experiences smaller price fluctuations and is considered to be less risky than VGT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.