MSFT vs. ITA
MSFT (Microsoft 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, MSFT returned 24.39%/yr vs 15.34%/yr for ITA. At a 0.47 correlation, their price movements are largely independent.
Performance
MSFT vs. ITA - Performance Comparison
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Returns By Period
In the year-to-date period, MSFT achieves a -18.85% return, which is significantly lower than ITA's 8.97% return. Over the past 10 years, MSFT has outperformed ITA with an annualized return of 24.39%, while ITA has yielded a comparatively lower 15.34% annualized return.
MSFT
- 1D
- 0.10%
- 1M
- -7.19%
- YTD
- -18.85%
- 6M
- -17.98%
- 1Y
- -17.07%
- 3Y*
- 6.16%
- 5Y*
- 9.56%
- 10Y*
- 24.39%
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%
MSFT vs. ITA - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
MSFT Microsoft Corporation | -18.85% | 15.58% | 12.93% | 58.19% | -28.02% | 52.48% | 42.53% | 57.56% | 20.80% | 40.73% |
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 MSFT and ITA is 0.20, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.20 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.24 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.34 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.37 |
Correlation (All Time) Calculated using the full available price history since May 5, 2006 | 0.47 |
Over the past year, the correlation between MSFT and ITA has dropped to 0.20 - well below their long-term average of 0.47, suggesting their price drivers have been diverging.
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Return for Risk
MSFT vs. ITA — Risk / Return Rank
MSFT
ITA
MSFT vs. ITA - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Microsoft Corporation (MSFT) 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.
| MSFT | ITA | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -2.13 | ||
| Sortino ratioReturn per unit of downside risk | -2.95 | ||
| Omega ratioGain probability vs. loss probability | 0.89 | 1.25 | -0.36 |
| Calmar ratioReturn relative to maximum drawdown | -0.53 | 1.97 | -2.49 |
| Martin ratioReturn relative to average drawdown | -1.08 | 5.20 | -6.28 |
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Drawdowns
MSFT vs. ITA - Drawdown Comparison
The maximum MSFT drawdown since its inception was -69.38%, which is greater than ITA's maximum drawdown of -59.72%. Use the drawdown chart below to compare losses from any high point for MSFT and ITA.
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Drawdown Indicators
| MSFT | ITA | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -69.38% | -59.72% | -9.66% |
Max Drawdown (1Y)Largest decline over 1 year | -33.91% | -15.82% | -18.09% |
Max Drawdown (3Y)Largest decline over 3 years | -33.91% | -15.82% | -18.09% |
Max Drawdown (5Y)Largest decline over 5 years | -37.15% | -18.72% | -18.43% |
Max Drawdown (10Y)Largest decline over 10 years | -37.15% | -51.00% | +13.85% |
Current DrawdownCurrent decline from peak | -27.46% | -6.64% | -20.82% |
Average DrawdownAverage peak-to-trough decline | -21.78% | -9.45% | -12.33% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 16.48% | 5.97% | +10.51% |
Volatility
MSFT vs. ITA - Volatility Comparison
Microsoft Corporation (MSFT) has a higher volatility of 10.52% compared to iShares U.S. Aerospace & Defense ETF (ITA) at 9.07%. This indicates that MSFT's price experiences larger fluctuations and is considered to be riskier 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
| MSFT | ITA | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 10.52% | 9.07% | +1.45% |
Volatility (6M)Calculated over the trailing 6-month period | 22.31% | 18.47% | +3.84% |
Volatility (1Y)Calculated over the trailing 1-year period | 25.42% | 21.74% | +3.68% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 26.66% | 20.21% | +6.45% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 27.06% | 23.22% | +3.84% |
Dividends
MSFT vs. ITA - Dividend Comparison
MSFT's dividend yield for the trailing twelve months is around 0.91%, 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% |
MSFT Microsoft Corporation | 0.91% | 0.70% | 0.73% | 0.74% | 1.06% | 0.68% | 0.94% | 1.20% | 1.69% | 1.86% | 2.37% | 2.33% |
Frequently Asked Questions
MSFT and ITA have a correlation of 0.20, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
MSFT has higher volatility (10.52%) compared to ITA (9.07%). In terms of maximum drawdown, MSFT dropped -69.38% vs ITA's -59.72%.
ITA currently has the higher Sharpe Ratio (1.43 vs -0.70), 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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