ITA vs. XEF.TO

Last updated Jun 16, 2026

ITA (iShares U.S. Aerospace & Defense ETF) and XEF.TO (iShares Core MSCI EAFE IMI Index ETF) are both exchange-traded funds - ITA is a Aerospace & Defense fund tracking the Dow Jones U.S. Select Aerospace & Defense Index, while XEF.TO is a Foreign Large Cap Equities fund tracking the MSCI EAFE Investable Market Index (CAD). Both are passively managed. Over the past 10 years, ITA returned 15.54%/yr vs 9.59%/yr for XEF.TO. At a 0.45 correlation, their price movements are largely independent. ITA charges 0.38%/yr vs 0.23%/yr for XEF.TO.

Performance

ITA vs. XEF.TO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares U.S. Aerospace & Defense ETF (ITA) and iShares Core MSCI EAFE IMI Index ETF (XEF.TO). The values are adjusted to include any dividend payments, if applicable.

Different Trading Currencies

ITA is traded in USD, while XEF.TO is traded in CAD. To make them comparable, the XEF.TO values have been converted to USD using the latest available exchange rates.

Returns By Period

In the year-to-date period, ITA achieves a 10.73% return, which is significantly higher than XEF.TO's 10.08% return. Over the past 10 years, ITA has outperformed XEF.TO with an annualized return of 15.54%, while XEF.TO has yielded a comparatively lower 9.59% annualized return.

ITA

• 1D: 1.62%
• 1M: 9.34%
• YTD: 10.73%
• 6M: 13.39%
• 1Y: 32.52%
• 3Y*: 27.94%
• 5Y*: 17.41%
• 10Y*: 15.54%

XEF.TO

• 1D: 0.72%
• 1M: 3.50%
• YTD: 10.08%
• 6M: 11.25%
• 1Y: 23.19%
• 3Y*: 16.08%
• 5Y*: 8.05%
• 10Y*: 9.59%

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

ITA vs. XEF.TO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ITA iShares U.S. Aerospace & Defense ETF	10.73%	48.64%	15.81%	14.33%	9.96%	9.39%	-13.57%	30.51%	-7.22%	35.24%
XEF.TO iShares Core MSCI EAFE IMI Index ETF	10.08%	31.70%	3.30%	18.02%	-14.92%	10.41%	8.71%	20.83%	-13.90%	26.79%

Correlation

The correlation between ITA and XEF.TO is 0.39, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.39
Correlation (3Y) Calculated over the trailing 3-year period	0.36
Correlation (5Y) Calculated over the trailing 5-year period	0.40
Correlation (10Y) Calculated over the trailing 10-year period	0.43
Correlation (All Time) Calculated using the full available price history since Apr 15, 2013	0.45

ITA vs. XEF.TO - Sectors Allocation Comparison

Sectors	ITA	XEF.TO
Industrials	99.8%	20.5%
Technology	0.1%	10.2%
Basic Materials	-	6.6%
Communication Services	-	4.4%
Consumer Cyclical	-	8.2%
Consumer Defensive	-	6.4%
Energy	-	4.0%
Financial Services	-	22.9%
Healthcare	-	9.8%
Real Estate	-	3.1%
Utilities	-	3.8%

Return for Risk

ITA vs. XEF.TO — Risk / Return Rank

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

ITA

ITA Risk / Return Rank: 45
ITA Sharpe Ratio Rank: 48
ITA Sortino Ratio Rank: 49
ITA Omega Ratio Rank: 44
ITA Calmar Ratio Rank: 46
ITA Martin Ratio Rank: 38

XEF.TO

XEF.TO Risk / Return Rank: 60
XEF.TO Sharpe Ratio Rank: 62
XEF.TO Sortino Ratio Rank: 64
XEF.TO Omega Ratio Rank: 64
XEF.TO Calmar Ratio Rank: 52
XEF.TO Martin Ratio Rank: 58

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. XEF.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Aerospace & Defense ETF (ITA) and iShares Core MSCI EAFE IMI Index ETF (XEF.TO). 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	XEF.TO	Difference
Sharpe ratio: Return per unit of total volatility	1.50	1.54	-0.04
Sortino ratio: Return per unit of downside risk	2.19	2.24	-0.04
Omega ratio: Gain probability vs. loss probability	1.26	1.28	-0.03
Calmar ratio: Return relative to maximum drawdown	2.06	2.01	+0.05
Martin ratio: Return relative to average drawdown	5.46	7.79	-2.33

ITA vs. XEF.TO - Sharpe Ratio Comparison

The current ITA Sharpe Ratio is 1.50, which is comparable to the XEF.TO Sharpe Ratio of 1.54. The chart below compares the historical Sharpe Ratios of ITA and XEF.TO, 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. XEF.TO - Drawdown Comparison

The maximum ITA drawdown since its inception was -59.72%, which is greater than XEF.TO's maximum drawdown of -34.33%. Use the drawdown chart below to compare losses from any high point for ITA and XEF.TO.

Drawdown Indicators

	ITA	XEF.TO	Difference
Max Drawdown Largest peak-to-trough decline	-59.72%	-34.33%	-25.39%
Max Drawdown (1Y) Largest decline over 1 year	-15.82%	-11.58%	-4.24%
Max Drawdown (3Y) Largest decline over 3 years	-15.82%	-13.93%	-1.89%
Max Drawdown (5Y) Largest decline over 5 years	-18.72%	-31.05%	+12.33%
Max Drawdown (10Y) Largest decline over 10 years	-51.00%	-34.33%	-16.67%
Current Drawdown Current decline from peak	-5.13%	-0.20%	-4.93%
Average Drawdown Average peak-to-trough decline	-9.45%	-7.13%	-2.32%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.98%	2.99%	+2.99%

Volatility

ITA vs. XEF.TO - Volatility Comparison

iShares U.S. Aerospace & Defense ETF (ITA) has a higher volatility of 9.14% compared to iShares Core MSCI EAFE IMI Index ETF (XEF.TO) at 5.36%. This indicates that ITA's price experiences larger fluctuations and is considered to be riskier than XEF.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ITA	XEF.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.14%	5.36%	+3.78%
Volatility (6M) Calculated over the trailing 6-month period	18.45%	12.59%	+5.86%
Volatility (1Y) Calculated over the trailing 1-year period	21.82%	15.19%	+6.63%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.23%	15.05%	+5.18%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.24%	16.22%	+7.02%

ITA vs. XEF.TO - Expense Ratio Comparison

ITA has a 0.38% expense ratio, which is higher than XEF.TO's 0.23% expense ratio.

Dividends

ITA vs. XEF.TO - Dividend Comparison

ITA's dividend yield for the trailing twelve months is around 0.52%, less than XEF.TO's 2.17% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ITA iShares U.S. Aerospace & Defense ETF	0.52%	0.55%	0.85%	0.93%	0.95%	0.82%	1.07%	1.54%	1.13%	0.91%	1.07%	1.04%
XEF.TO iShares Core MSCI EAFE IMI Index ETF	2.17%	2.43%	2.76%	2.75%	2.93%	2.42%	1.93%	2.71%	2.75%	2.11%	2.45%	2.42%

Frequently Asked Questions

Can I hold both ITA and XEF.TO in my portfolio?

ITA and XEF.TO have a correlation of 0.39, 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 XEF.TO?

On fees, XEF.TO is cheaper at 0.23% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, ITA or XEF.TO?

XEF.TO is cheaper with a 0.23% expense ratio, compared with 0.38% for ITA.

What is the main difference between ITA and XEF.TO?

ITA is categorized as Aerospace & Defense, while XEF.TO is Foreign Large Cap Equities. ITA tracks Dow Jones U.S. Select Aerospace & Defense Index, while XEF.TO tracks MSCI EAFE Investable Market Index (CAD). Their fees differ too: 0.38% for ITA and 0.23% for XEF.TO.