LMT vs. ITA
LMT (Lockheed Martin Corporation) is a stock, while ITA (iShares U.S. Aerospace & Defense ETF) is Aerospace & Defense fund tracking the Dow Jones U.S. Select Aerospace & Defense Index. Over the past 10 years, LMT returned 11.37%/yr vs 15.34%/yr for ITA. A 0.66 correlation means they provide meaningful diversification when combined.
Performance
LMT vs. ITA - Performance Comparison
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Returns By Period
In the year-to-date period, LMT achieves a 13.04% return, which is significantly higher than ITA's 8.97% return. Over the past 10 years, LMT has underperformed ITA with an annualized return of 11.37%, while ITA has yielded a comparatively higher 15.34% annualized return.
LMT
- 1D
- -1.52%
- 1M
- 5.40%
- YTD
- 13.04%
- 6M
- 13.84%
- 1Y
- 14.07%
- 3Y*
- 8.98%
- 5Y*
- 9.78%
- 10Y*
- 11.37%
ITA
- 1D
- -0.95%
- 1M
- 4.16%
- YTD
- 8.97%
- 6M
- 11.71%
- 1Y
- 30.42%
- 3Y*
- 27.30%
- 5Y*
- 16.86%
- 10Y*
- 15.34%
LMT vs. ITA - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
LMT Lockheed Martin Corporation | 13.04% | 2.47% | 10.02% | -4.31% | 40.48% | 3.15% | -6.49% | 52.55% | -16.35% | 31.77% |
ITA iShares U.S. Aerospace & Defense ETF | 8.97% | 48.64% | 15.81% | 14.33% | 9.96% | 9.39% | -13.57% | 30.51% | -7.22% | 35.24% |
Correlation
The correlation between LMT and ITA is 0.51, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.51 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.47 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.53 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.61 |
Correlation (All Time) Calculated using the full available price history since May 5, 2006 | 0.66 |
The correlation between LMT and ITA shifts across timeframes, from 0.47 (3 years) to 0.66 (all time), reflecting how their relationship changes across market environments.
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Return for Risk
LMT vs. ITA — Risk / Return Rank
LMT
ITA
LMT vs. ITA - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Lockheed Martin Corporation (LMT) and iShares U.S. Aerospace & Defense ETF (ITA). 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.
| LMT | ITA | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.74 | ||
| Sortino ratioReturn per unit of downside risk | -1.05 | ||
| Omega ratioGain probability vs. loss probability | 1.14 | 1.25 | -0.10 |
| Calmar ratioReturn relative to maximum drawdown | 0.73 | 1.97 | -1.24 |
| Martin ratioReturn relative to average drawdown | 1.69 | 5.20 | -3.51 |
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Drawdowns
LMT vs. ITA - Drawdown Comparison
The maximum LMT drawdown since its inception was -79.29%, which is greater than ITA's maximum drawdown of -59.72%. Use the drawdown chart below to compare losses from any high point for LMT and ITA.
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Drawdown Indicators
| LMT | ITA | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -79.29% | -59.72% | -19.57% |
Max Drawdown (1Y)Largest decline over 1 year | -25.15% | -15.82% | -9.33% |
Max Drawdown (3Y)Largest decline over 3 years | -31.79% | -15.82% | -15.97% |
Max Drawdown (5Y)Largest decline over 5 years | -31.79% | -18.72% | -13.07% |
Max Drawdown (10Y)Largest decline over 10 years | -36.67% | -51.00% | +14.33% |
Current DrawdownCurrent decline from peak | -19.63% | -6.64% | -12.99% |
Average DrawdownAverage peak-to-trough decline | -26.83% | -9.45% | -17.38% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 10.81% | 5.97% | +4.84% |
Volatility
LMT vs. ITA - Volatility Comparison
The current volatility for Lockheed Martin Corporation (LMT) is 7.02%, while iShares U.S. Aerospace & Defense ETF (ITA) has a volatility of 9.07%. This indicates that LMT experiences smaller price fluctuations and is considered to be less risky than ITA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| LMT | ITA | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 7.02% | 9.07% | -2.05% |
Volatility (6M)Calculated over the trailing 6-month period | 20.04% | 18.47% | +1.57% |
Volatility (1Y)Calculated over the trailing 1-year period | 26.71% | 21.74% | +4.97% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 22.99% | 20.21% | +2.78% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 23.76% | 23.22% | +0.54% |
Dividends
LMT vs. ITA - Dividend Comparison
LMT's dividend yield for the trailing twelve months is around 2.53%, more than ITA's 0.46% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ITA iShares U.S. Aerospace & Defense ETF | 0.46% | 0.55% | 0.85% | 0.93% | 0.95% | 0.82% | 1.07% | 1.54% | 1.13% | 0.91% | 1.07% | 1.04% |
LMT Lockheed Martin Corporation | 2.53% | 2.76% | 2.62% | 2.68% | 2.34% | 2.98% | 2.76% | 2.31% | 3.13% | 2.32% | 2.71% | 2.83% |
Frequently Asked Questions
LMT and ITA have a correlation of 0.51, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
ITA has higher volatility (9.07%) compared to LMT (7.02%). In terms of maximum drawdown, LMT dropped -79.29% vs ITA's -59.72%.
ITA currently has the higher Sharpe Ratio (1.43 vs 0.69), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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