ITA vs. XQQ.TO

Last updated Jun 16, 2026

ITA (iShares U.S. Aerospace & Defense ETF) and XQQ.TO (iShares NASDAQ 100 Index ETF (CAD-Hedged)) are both exchange-traded funds - ITA is a Aerospace & Defense fund tracking the Dow Jones U.S. Select Aerospace & Defense Index, while XQQ.TO is a Nasdaq-100 fund tracking the Morningstar US Market TR CAD. Both are passively managed. Over the past 10 years, ITA returned 15.54%/yr vs 19.25%/yr for XQQ.TO. At a 0.46 correlation, their price movements are largely independent. ITA charges 0.38%/yr vs 0.39%/yr for XQQ.TO.

Performance

ITA vs. XQQ.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 NASDAQ 100 Index ETF (CAD-Hedged) (XQQ.TO). The values are adjusted to include any dividend payments, if applicable.

Different Trading Currencies

ITA is traded in USD, while XQQ.TO is traded in CAD. To make them comparable, the XQQ.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 XQQ.TO's 17.28% return. Over the past 10 years, ITA has underperformed XQQ.TO with an annualized return of 15.54%, while XQQ.TO has yielded a comparatively higher 19.25% 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%

XQQ.TO

• 1D: 3.11%
• 1M: 3.00%
• YTD: 17.28%
• 6M: 16.08%
• 1Y: 32.00%
• 3Y*: 22.21%
• 5Y*: 11.82%
• 10Y*: 19.25%

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

ITA vs. XQQ.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%
XQQ.TO iShares NASDAQ 100 Index ETF (CAD-Hedged)	17.28%	21.31%	14.96%	56.99%	-37.11%	22.83%	49.67%	44.89%	-8.97%	43.10%

Correlation

The correlation between ITA and XQQ.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	0.37
Correlation (5Y) Calculated over the trailing 5-year period	0.46
Correlation (10Y) Calculated over the trailing 10-year period	0.44
Correlation (All Time) Calculated using the full available price history since May 10, 2011	0.46

ITA vs. XQQ.TO - Sectors Allocation Comparison

Sectors	ITA	XQQ.TO
Industrials	99.8%	3.1%
Technology	0.1%	53.7%
Basic Materials	-	1.1%
Communication Services	-	15.8%
Consumer Cyclical	-	12.2%
Consumer Defensive	-	7.7%
Energy	-	0.6%
Financial Services	-	0.2%
Healthcare	-	4.2%
Real Estate	-	0.1%
Utilities	-	1.4%

Return for Risk

ITA vs. XQQ.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

XQQ.TO

XQQ.TO Risk / Return Rank: 62
XQQ.TO Sharpe Ratio Rank: 71
XQQ.TO Sortino Ratio Rank: 65
XQQ.TO Omega Ratio Rank: 68
XQQ.TO Calmar Ratio Rank: 54
XQQ.TO Martin Ratio Rank: 51

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. XQQ.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 NASDAQ 100 Index ETF (CAD-Hedged) (XQQ.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	XQQ.TO	Difference
Sharpe ratio: Return per unit of total volatility	1.50	1.76	-0.26
Sortino ratio: Return per unit of downside risk	2.19	2.32	-0.13
Omega ratio: Gain probability vs. loss probability	1.26	1.31	-0.05
Calmar ratio: Return relative to maximum drawdown	2.06	2.23	-0.16
Martin ratio: Return relative to average drawdown	5.46	8.14	-2.69

ITA vs. XQQ.TO - Sharpe Ratio Comparison

The current ITA Sharpe Ratio is 1.50, which is comparable to the XQQ.TO Sharpe Ratio of 1.76. The chart below compares the historical Sharpe Ratios of ITA and XQQ.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. XQQ.TO - Drawdown Comparison

The maximum ITA drawdown since its inception was -59.72%, which is greater than XQQ.TO's maximum drawdown of -43.53%. Use the drawdown chart below to compare losses from any high point for ITA and XQQ.TO.

Drawdown Indicators

	ITA	XQQ.TO	Difference
Max Drawdown Largest peak-to-trough decline	-59.72%	-43.53%	-16.19%
Max Drawdown (1Y) Largest decline over 1 year	-15.82%	-14.43%	-1.39%
Max Drawdown (3Y) Largest decline over 3 years	-15.82%	-22.99%	+7.17%
Max Drawdown (5Y) Largest decline over 5 years	-18.72%	-43.53%	+24.81%
Max Drawdown (10Y) Largest decline over 10 years	-51.00%	-43.53%	-7.47%
Current Drawdown Current decline from peak	-5.13%	-1.34%	-3.79%
Average Drawdown Average peak-to-trough decline	-9.45%	-7.79%	-1.66%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.98%	3.94%	+2.04%

Volatility

ITA vs. XQQ.TO - Volatility Comparison

iShares U.S. Aerospace & Defense ETF (ITA) has a higher volatility of 9.14% compared to iShares NASDAQ 100 Index ETF (CAD-Hedged) (XQQ.TO) at 8.07%. This indicates that ITA's price experiences larger fluctuations and is considered to be riskier than XQQ.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ITA	XQQ.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.14%	8.07%	+1.07%
Volatility (6M) Calculated over the trailing 6-month period	18.45%	14.68%	+3.77%
Volatility (1Y) Calculated over the trailing 1-year period	21.82%	18.33%	+3.49%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.23%	23.54%	-3.31%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.24%	23.42%	-0.18%

ITA vs. XQQ.TO - Expense Ratio Comparison

ITA has a 0.38% expense ratio, which is lower than XQQ.TO's 0.39% expense ratio.

Dividends

ITA vs. XQQ.TO - Dividend Comparison

ITA's dividend yield for the trailing twelve months is around 0.52%, more than XQQ.TO's 0.21% 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%
XQQ.TO iShares NASDAQ 100 Index ETF (CAD-Hedged)	0.21%	0.25%	0.67%	0.93%	1.27%	0.52%	0.80%	1.44%	1.61%	1.64%	2.35%	1.93%

Frequently Asked Questions

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

ITA and XQQ.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 XQQ.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 XQQ.TO?

ITA is cheaper with a 0.38% expense ratio, compared with 0.39% for XQQ.TO.

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

ITA is categorized as Aerospace & Defense, while XQQ.TO is Nasdaq-100. ITA tracks Dow Jones U.S. Select Aerospace & Defense Index, while XQQ.TO tracks Morningstar US Market TR CAD. Their fees differ too: 0.38% for ITA and 0.39% for XQQ.TO.