PNNT vs. ITA

Last updated Jun 9, 2026

PNNT (PennantPark Investment 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, PNNT returned 6.83%/yr vs 14.86%/yr for ITA. At a 0.43 correlation, their price movements are largely independent.

Performance

PNNT vs. ITA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in PennantPark Investment Corporation (PNNT) 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, PNNT achieves a -30.57% return, which is significantly lower than ITA's 5.92% return. Over the past 10 years, PNNT has underperformed ITA with an annualized return of 6.83%, while ITA has yielded a comparatively higher 14.86% annualized return.

PNNT

• 1D: -1.30%
• 1M: -15.02%
• YTD: -30.57%
• 6M: -29.01%
• 1Y: -33.64%
• 3Y*: 0.71%
• 5Y*: 0.56%
• 10Y*: 6.83%

ITA

• 1D: -0.95%
• 1M: 1.69%
• YTD: 5.92%
• 6M: 11.28%
• 1Y: 25.56%
• 3Y*: 26.35%
• 5Y*: 16.26%
• 10Y*: 14.86%

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

PNNT vs. ITA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PNNT PennantPark Investment Corporation	-30.57%	-2.96%	16.56%	37.25%	-8.90%	61.71%	-17.99%	14.30%	2.05%	-0.65%
ITA iShares U.S. Aerospace & Defense ETF	5.92%	48.64%	15.81%	14.33%	9.96%	9.39%	-13.57%	30.51%	-7.22%	35.24%

Correlation

The correlation between PNNT and ITA is 0.25, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.25
Correlation (3Y) Calculated over the trailing 3-year period	0.33
Correlation (5Y) Calculated over the trailing 5-year period	0.38
Correlation (10Y) Calculated over the trailing 10-year period	0.36
Correlation (All Time) Calculated using the full available price history since Apr 19, 2007	0.43

The correlation between PNNT and ITA shifts across timeframes, from 0.25 (1 year) to 0.43 (all time), reflecting how their relationship changes across market environments.

Return for Risk

PNNT vs. ITA — Risk / Return Rank

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

PNNT

PNNT Risk / Return Rank: 5
PNNT Sharpe Ratio Rank: 2
PNNT Sortino Ratio Rank: 4
PNNT Omega Ratio Rank: 5
PNNT Calmar Ratio Rank: 12
PNNT Martin Ratio Rank: 3

ITA

ITA Risk / Return Rank: 36
ITA Sharpe Ratio Rank: 38
ITA Sortino Ratio Rank: 38
ITA Omega Ratio Rank: 35
ITA Calmar Ratio Rank: 36
ITA Martin Ratio Rank: 32

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.

PNNT vs. ITA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for PennantPark Investment Corporation (PNNT) 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.

	PNNT	ITA	Difference
Sharpe ratio: Return per unit of total volatility	-1.25	1.22	-2.46
Sortino ratio: Return per unit of downside risk	-1.69	1.81	-3.50
Omega ratio: Gain probability vs. loss probability	0.78	1.21	-0.43
Calmar ratio: Return relative to maximum drawdown	-0.79	1.62	-2.41
Martin ratio: Return relative to average drawdown	-1.69	4.35	-6.04
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PNNT vs. ITA - Sharpe Ratio Comparison

The current PNNT Sharpe Ratio is -1.25, which is lower than the ITA Sharpe Ratio of 1.22. The chart below compares the historical Sharpe Ratios of PNNT 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.

Sharpe Ratios by Period

	PNNT	ITA	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-1.25	1.22	-2.46
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.02	0.81	-0.79
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.21	0.64	-0.43
Sharpe Ratio (All Time) Calculated using the full available price history	0.13	0.51	-0.38

Drawdowns

PNNT vs. ITA - Drawdown Comparison

The maximum PNNT drawdown since its inception was -82.16%, which is greater than ITA's maximum drawdown of -59.72%. Use the drawdown chart below to compare losses from any high point for PNNT and ITA.

Drawdown Indicators

	PNNT	ITA	Difference
Max Drawdown Largest peak-to-trough decline	-82.16%	-59.72%	-22.44%
Max Drawdown (1Y) Largest decline over 1 year	-42.61%	-15.82%	-26.79%
Max Drawdown (3Y) Largest decline over 3 years	-42.61%	-15.82%	-26.79%
Max Drawdown (5Y) Largest decline over 5 years	-42.61%	-18.72%	-23.89%
Max Drawdown (10Y) Largest decline over 10 years	-69.14%	-51.00%	-18.14%
Current Drawdown Current decline from peak	-40.90%	-9.25%	-31.65%
Average Drawdown Average peak-to-trough decline	-15.28%	-9.46%	-5.82%
Ulcer Index Depth and duration of drawdowns from previous peaks	19.92%	5.89%	+14.03%

Volatility

PNNT vs. ITA - Volatility Comparison

PennantPark Investment Corporation (PNNT) has a higher volatility of 14.65% compared to iShares U.S. Aerospace & Defense ETF (ITA) at 7.09%. This indicates that PNNT'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.

Volatility by Period

	PNNT	ITA	Difference
Volatility (1M) Calculated over the trailing 1-month period	14.65%	7.09%	+7.56%
Volatility (6M) Calculated over the trailing 6-month period	23.99%	17.68%	+6.31%
Volatility (1Y) Calculated over the trailing 1-year period	27.16%	21.12%	+6.04%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.80%	20.07%	+3.73%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	32.77%	23.17%	+9.60%

Dividends

PNNT vs. ITA - Dividend Comparison

PNNT's dividend yield for the trailing twelve months is around 25.20%, more than ITA's 0.47% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ITA iShares U.S. Aerospace & Defense ETF	0.47%	0.55%	0.85%	0.93%	0.95%	0.82%	1.07%	1.54%	1.13%	0.91%	1.07%	1.04%
PNNT PennantPark Investment Corporation	25.20%	16.11%	12.85%	11.65%	10.43%	6.93%	11.71%	11.03%	11.30%	10.42%	14.62%	18.12%

Frequently Asked Questions

Can I hold both PNNT and ITA in my portfolio?

PNNT and ITA have a correlation of 0.25, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PNNT or ITA?

PNNT has higher volatility (14.65%) compared to ITA (7.09%). In terms of maximum drawdown, PNNT dropped -82.16% vs ITA's -59.72%.

Which has better risk-adjusted returns?

ITA currently has the higher Sharpe Ratio (1.22 vs -1.25), 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.