NOC vs. ITA

Last updated Jun 13, 2026

NOC (Northrop Grumman 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, NOC returned 11.53%/yr vs 15.34%/yr for ITA. A 0.67 correlation means they provide meaningful diversification when combined.

Performance

NOC vs. ITA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Northrop Grumman Corporation (NOC) and iShares U.S. Aerospace & Defense ETF (ITA). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, NOC achieves a -2.75% return, which is significantly lower than ITA's 8.97% return. Over the past 10 years, NOC has underperformed ITA with an annualized return of 11.53%, while ITA has yielded a comparatively higher 15.34% annualized return.

NOC

• 1D: -0.40%
• 1M: 0.75%
• YTD: -2.75%
• 6M: -2.67%
• 1Y: 8.17%
• 3Y*: 8.64%
• 5Y*: 9.73%
• 10Y*: 11.53%

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%

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

NOC vs. ITA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
NOC Northrop Grumman Corporation	-2.75%	23.61%	1.93%	-12.79%	43.02%	29.29%	-9.92%	42.69%	-18.95%	33.88%
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 NOC and ITA is 0.53, 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	0.53
Correlation (3Y) Calculated over the trailing 3-year period	0.45
Correlation (5Y) Calculated over the trailing 5-year period	0.52
Correlation (10Y) Calculated over the trailing 10-year period	0.59
Correlation (All Time) Calculated using the full available price history since May 5, 2006	0.67

The correlation between NOC and ITA shifts across timeframes, from 0.45 (3 years) to 0.67 (all time), reflecting how their relationship changes across market environments.

Return for Risk

NOC vs. ITA — Risk / Return Rank

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

NOC

NOC Risk / Return Rank: 54
NOC Sharpe Ratio Rank: 59
NOC Sortino Ratio Rank: 53
NOC Omega Ratio Rank: 52
NOC Calmar Ratio Rank: 52
NOC Martin Ratio Rank: 54

ITA

ITA Risk / Return Rank: 44
ITA Sharpe Ratio Rank: 47
ITA Sortino Ratio Rank: 48
ITA Omega Ratio Rank: 43
ITA Calmar Ratio Rank: 45
ITA Martin Ratio Rank: 38

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.

NOC vs. ITA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Northrop Grumman Corporation (NOC) 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.

	NOC	ITA	Difference
Sharpe ratio: Return per unit of total volatility	0.47	1.43	-0.96
Sortino ratio: Return per unit of downside risk	0.87	2.11	-1.24
Omega ratio: Gain probability vs. loss probability	1.11	1.25	-0.14
Calmar ratio: Return relative to maximum drawdown	0.40	1.97	-1.57
Martin ratio: Return relative to average drawdown	1.02	5.20	-4.18

NOC vs. ITA - Sharpe Ratio Comparison

The current NOC Sharpe Ratio is 0.47, which is lower than the ITA Sharpe Ratio of 1.43. The chart below compares the historical Sharpe Ratios of NOC and ITA, 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

NOC vs. ITA - Drawdown Comparison

The maximum NOC drawdown since its inception was -71.12%, which is greater than ITA's maximum drawdown of -59.72%. Use the drawdown chart below to compare losses from any high point for NOC and ITA.

Drawdown Indicators

	NOC	ITA	Difference
Max Drawdown Largest peak-to-trough decline	-71.12%	-59.72%	-11.40%
Max Drawdown (1Y) Largest decline over 1 year	-31.20%	-15.82%	-15.38%
Max Drawdown (3Y) Largest decline over 3 years	-31.20%	-15.82%	-15.38%
Max Drawdown (5Y) Largest decline over 5 years	-31.20%	-18.72%	-12.48%
Max Drawdown (10Y) Largest decline over 10 years	-36.38%	-51.00%	+14.62%
Current Drawdown Current decline from peak	-28.03%	-6.64%	-21.39%
Average Drawdown Average peak-to-trough decline	-18.40%	-9.45%	-8.95%
Ulcer Index Depth and duration of drawdowns from previous peaks	12.25%	5.97%	+6.28%

Volatility

NOC vs. ITA - Volatility Comparison

The current volatility for Northrop Grumman Corporation (NOC) is 7.39%, while iShares U.S. Aerospace & Defense ETF (ITA) has a volatility of 9.07%. This indicates that NOC 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.

Volatility by Period

	NOC	ITA	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.39%	9.07%	-1.68%
Volatility (6M) Calculated over the trailing 6-month period	21.25%	18.47%	+2.78%
Volatility (1Y) Calculated over the trailing 1-year period	26.55%	21.74%	+4.81%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	25.28%	20.21%	+5.07%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	25.42%	23.22%	+2.20%

Dividends

NOC vs. ITA - Dividend Comparison

NOC's dividend yield for the trailing twelve months is around 1.71%, 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%
NOC Northrop Grumman Corporation	1.71%	1.58%	1.72%	1.57%	1.24%	1.59%	1.86%	1.50%	1.92%	1.27%	1.50%	1.64%

Frequently Asked Questions

Can I hold both NOC and ITA in my portfolio?

NOC and ITA have a correlation of 0.53, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, NOC or ITA?

ITA has higher volatility (9.07%) compared to NOC (7.39%). In terms of maximum drawdown, NOC dropped -71.12% vs ITA's -59.72%.

Which has better risk-adjusted returns?

ITA currently has the higher Sharpe Ratio (1.43 vs 0.47), 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.