ITA vs. XDEF

Last updated Jun 24, 2026

ITA (iShares U.S. Aerospace & Defense ETF) and XDEF (Xtrackers Europe Defense Technologies ETF) are both Aerospace & Defense funds - ITA tracks the Dow Jones U.S. Select Aerospace & Defense Index while XDEF tracks the STOXX Europe Total Market Defence, Space and Cybersecurity Innovation 50-25 Index. Both are passively managed. A 0.68 correlation means they provide meaningful diversification when combined. ITA charges 0.38%/yr vs 0.35%/yr for XDEF.

Performance

ITA vs. XDEF - Performance Comparison

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

Returns By Period

ITA

• 1D: 0.18%
• 1M: 4.76%
• YTD: 10.04%
• 6M: 7.54%
• 1Y: 29.57%
• 3Y*: 28.50%
• 5Y*: 17.14%
• 10Y*: 15.66%

XDEF

• 1D: -0.23%
• 1M: -2.40%
• YTD: —
• 6M: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

ITA vs. XDEF - Yearly Performance Comparison

	2026 (YTD)
ITA iShares U.S. Aerospace & Defense ETF	10.04%
XDEF Xtrackers Europe Defense Technologies ETF	-99.17%

Correlation

The correlation between ITA and XDEF is 0.68, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (All Time) Calculated using the full available price history since Jan 2, 2026	0.68

Return for Risk

ITA vs. XDEF — Risk / Return Rank

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

ITA

ITA Risk / Return Rank: 38
ITA Sharpe Ratio Rank: 40
ITA Sortino Ratio Rank: 41
ITA Omega Ratio Rank: 37
ITA Calmar Ratio Rank: 39
ITA Martin Ratio Rank: 34

XDEF

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

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. XDEF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Aerospace & Defense ETF (ITA) and Xtrackers Europe Defense Technologies ETF (XDEF). 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	XDEF	Difference
Sharpe ratio: Return per unit of total volatility	1.36	—	—
Sortino ratio: Return per unit of downside risk	2.01	—	—
Omega ratio: Gain probability vs. loss probability	1.24	—	—
Calmar ratio: Return relative to maximum drawdown	1.88	—	—
Martin ratio: Return relative to average drawdown	4.93	—	—

Drawdowns

ITA vs. XDEF - Drawdown Comparison

The maximum ITA drawdown since its inception was -59.72%, smaller than the maximum XDEF drawdown of -99.30%. Use the drawdown chart below to compare losses from any high point for ITA and XDEF.

Drawdown Indicators

	ITA	XDEF	Difference
Max Drawdown Largest peak-to-trough decline	-59.72%	-99.30%	+39.58%
Max Drawdown (1Y) Largest decline over 1 year	-15.82%	—	—
Max Drawdown (3Y) Largest decline over 3 years	-15.82%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-18.72%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-51.00%	—	—
Current Drawdown Current decline from peak	-5.72%	-99.26%	+93.54%
Average Drawdown Average peak-to-trough decline	-9.45%	-73.02%	+63.57%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.01%	—	—

Volatility

Volatility by Period

	ITA	XDEF	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.49%	—	—
Volatility (6M) Calculated over the trailing 6-month period	18.48%	—	—
Volatility (1Y) Calculated over the trailing 1-year period	21.90%	148.20%	-126.30%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.23%	148.20%	-127.97%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.23%	148.20%	-124.97%

ITA vs. XDEF - Expense Ratio Comparison

ITA has a 0.38% expense ratio, which is higher than XDEF's 0.35% expense ratio.

Dividends

ITA vs. XDEF - Dividend Comparison

ITA's dividend yield for the trailing twelve months is around 0.45%, less than XDEF's 1.52% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ITA iShares U.S. Aerospace & Defense ETF	0.45%	0.55%	0.85%	0.93%	0.95%	0.82%	1.07%	1.54%	1.13%	0.91%	1.07%	1.04%
XDEF Xtrackers Europe Defense Technologies ETF	1.52%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both ITA and XDEF in my portfolio?

ITA and XDEF have a correlation of 0.68, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, ITA or XDEF?

On fees, XDEF is cheaper at 0.35% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, ITA or XDEF?

XDEF is cheaper with a 0.35% expense ratio, compared with 0.38% for ITA.

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

XDEF has the higher dividend yield at 1.52%, compared with 0.45% for ITA.

What is the main difference between ITA and XDEF?

ITA tracks Dow Jones U.S. Select Aerospace & Defense Index, while XDEF tracks STOXX Europe Total Market Defence, Space and Cybersecurity Innovation 50-25 Index. They also come from different issuers: iShares and Xtrackers. Their fees differ too: 0.38% for ITA and 0.35% for XDEF.