ITA vs. XEG.TO

Last updated Jun 16, 2026

ITA (iShares U.S. Aerospace & Defense ETF) and XEG.TO (iShares S&P/TSX Capped Energy Index ETF) are both exchange-traded funds - ITA is a Aerospace & Defense fund tracking the Dow Jones U.S. Select Aerospace & Defense Index, while XEG.TO is a Energy Equities fund tracking the S&P/TSX Capped Energy Index. Both are passively managed. Over the past 10 years, ITA returned 15.54%/yr vs 10.51%/yr for XEG.TO. At a 0.41 correlation, their price movements are largely independent. ITA charges 0.38%/yr vs 0.60%/yr for XEG.TO.

Performance

ITA vs. XEG.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 S&P/TSX Capped Energy Index ETF (XEG.TO). The values are adjusted to include any dividend payments, if applicable.

Different Trading Currencies

ITA is traded in USD, while XEG.TO is traded in CAD. To make them comparable, the XEG.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 lower than XEG.TO's 32.24% return. Over the past 10 years, ITA has outperformed XEG.TO with an annualized return of 15.54%, while XEG.TO has yielded a comparatively lower 10.51% 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%

XEG.TO

• 1D: -2.60%
• 1M: -9.82%
• YTD: 32.24%
• 6M: 33.71%
• 1Y: 43.23%
• 3Y*: 23.37%
• 5Y*: 23.70%
• 10Y*: 10.51%

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

ITA vs. XEG.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%
XEG.TO iShares S&P/TSX Capped Energy Index ETF	32.32%	22.31%	5.14%	6.07%	44.12%	83.80%	-32.85%	13.73%	-32.71%	-4.72%

Correlation

The correlation between ITA and XEG.TO is -0.07, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.07
Correlation (3Y) Calculated over the trailing 3-year period	0.14
Correlation (5Y) Calculated over the trailing 5-year period	0.29
Correlation (10Y) Calculated over the trailing 10-year period	0.35
Correlation (All Time) Calculated using the full available price history since Jul 13, 2006	0.41

The correlation between ITA and XEG.TO shifts across timeframes, from -0.07 (1 year) to 0.41 (all time), reflecting how their relationship changes across market environments.

ITA vs. XEG.TO - Sectors Allocation Comparison

Sectors	ITA	XEG.TO
Industrials	99.8%	-
Technology	0.1%	-
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	100.0%
Financial Services	-	-
Healthcare	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

ITA vs. XEG.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

XEG.TO

XEG.TO Risk / Return Rank: 69
XEG.TO Sharpe Ratio Rank: 70
XEG.TO Sortino Ratio Rank: 59
XEG.TO Omega Ratio Rank: 61
XEG.TO Calmar Ratio Rank: 85
XEG.TO Martin Ratio Rank: 71

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. XEG.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 S&P/TSX Capped Energy Index ETF (XEG.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	XEG.TO	Difference
Sharpe ratio: Return per unit of total volatility	1.50	1.82	-0.32
Sortino ratio: Return per unit of downside risk	2.19	2.31	-0.12
Omega ratio: Gain probability vs. loss probability	1.26	1.30	-0.04
Calmar ratio: Return relative to maximum drawdown	2.06	3.69	-1.63
Martin ratio: Return relative to average drawdown	5.46	10.20	-4.74

ITA vs. XEG.TO - Sharpe Ratio Comparison

The current ITA Sharpe Ratio is 1.50, which is comparable to the XEG.TO Sharpe Ratio of 1.82. The chart below compares the historical Sharpe Ratios of ITA and XEG.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. XEG.TO - Drawdown Comparison

The maximum ITA drawdown since its inception was -59.72%, smaller than the maximum XEG.TO drawdown of -91.23%. Use the drawdown chart below to compare losses from any high point for ITA and XEG.TO.

Drawdown Indicators

	ITA	XEG.TO	Difference
Max Drawdown Largest peak-to-trough decline	-59.72%	-91.23%	+31.51%
Max Drawdown (1Y) Largest decline over 1 year	-15.82%	-11.77%	-4.05%
Max Drawdown (3Y) Largest decline over 3 years	-15.82%	-29.14%	+13.32%
Max Drawdown (5Y) Largest decline over 5 years	-18.72%	-33.93%	+15.21%
Max Drawdown (10Y) Largest decline over 10 years	-51.00%	-81.25%	+30.25%
Current Drawdown Current decline from peak	-5.13%	-11.77%	+6.64%
Average Drawdown Average peak-to-trough decline	-9.45%	-43.49%	+34.04%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.98%	4.25%	+1.73%

Volatility

ITA vs. XEG.TO - Volatility Comparison

iShares U.S. Aerospace & Defense ETF (ITA) and iShares S&P/TSX Capped Energy Index ETF (XEG.TO) have volatilities of 9.14% and 9.18%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ITA	XEG.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.14%	9.18%	-0.04%
Volatility (6M) Calculated over the trailing 6-month period	18.45%	19.89%	-1.44%
Volatility (1Y) Calculated over the trailing 1-year period	21.82%	23.86%	-2.04%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.23%	29.54%	-9.31%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.24%	34.29%	-11.05%

ITA vs. XEG.TO - Expense Ratio Comparison

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

Dividends

ITA vs. XEG.TO - Dividend Comparison

ITA's dividend yield for the trailing twelve months is around 0.52%, less than XEG.TO's 2.84% 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%
XEG.TO iShares S&P/TSX Capped Energy Index ETF	2.84%	3.63%	3.46%	4.26%	3.31%	1.64%	2.96%	2.70%	2.25%	1.41%	1.40%	3.58%

Frequently Asked Questions

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

ITA and XEG.TO have a correlation of -0.07, 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 XEG.TO?

On fees, ITA is cheaper at 0.38% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, ITA or XEG.TO?

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

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

ITA is categorized as Aerospace & Defense, while XEG.TO is Energy Equities. ITA tracks Dow Jones U.S. Select Aerospace & Defense Index, while XEG.TO tracks S&P/TSX Capped Energy Index. Their fees differ too: 0.38% for ITA and 0.60% for XEG.TO.