XDEF vs. ITA

Last updated Jun 23, 2026

XDEF (Xtrackers Europe Defense Technologies ETF) and ITA (iShares U.S. Aerospace & Defense ETF) are both Aerospace & Defense funds - XDEF tracks the STOXX Europe Total Market Defence, Space and Cybersecurity Innovation 50-25 Index while ITA tracks the Dow Jones U.S. Select Aerospace & Defense Index. Both are passively managed. A 0.68 correlation means they provide meaningful diversification when combined. XDEF charges 0.35%/yr vs 0.38%/yr for ITA.

Performance

XDEF vs. ITA - Performance Comparison

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

Returns By Period

XDEF

• 1D: -1.15%
• 1M: -2.17%
• YTD: —
• 6M: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

ITA

• 1D: -1.46%
• 1M: 4.57%
• YTD: 9.85%
• 6M: 7.51%
• 1Y: 31.18%
• 3Y*: 28.43%
• 5Y*: 17.33%
• 10Y*: 15.64%

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

XDEF vs. ITA - Yearly Performance Comparison

	2026 (YTD)
XDEF Xtrackers Europe Defense Technologies ETF	-99.16%
ITA iShares U.S. Aerospace & Defense ETF	9.85%

Correlation

The correlation between XDEF and ITA is 0.68, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (All Time) Calculated using the full available price history since Jan 2, 2026	0.68

Return for Risk

XDEF vs. ITA — Risk / Return Rank

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

XDEF

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

ITA

ITA Risk / Return Rank: 39
ITA Sharpe Ratio Rank: 42
ITA Sortino Ratio Rank: 42
ITA Omega Ratio Rank: 38
ITA Calmar Ratio Rank: 41
ITA Martin Ratio Rank: 35

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.

XDEF vs. ITA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Xtrackers Europe Defense Technologies ETF (XDEF) 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.

	XDEF	ITA	Difference
Sharpe ratio: Return per unit of total volatility	—	1.43	—
Sortino ratio: Return per unit of downside risk	—	2.10	—
Omega ratio: Gain probability vs. loss probability	—	1.25	—
Calmar ratio: Return relative to maximum drawdown	—	1.98	—
Martin ratio: Return relative to average drawdown	—	5.21	—

Drawdowns

XDEF vs. ITA - Drawdown Comparison

The maximum XDEF drawdown since its inception was -99.30%, which is greater than ITA's maximum drawdown of -59.72%. Use the drawdown chart below to compare losses from any high point for XDEF and ITA.

Drawdown Indicators

	XDEF	ITA	Difference
Max Drawdown Largest peak-to-trough decline	-99.30%	-59.72%	-39.58%
Max Drawdown (1Y) Largest decline over 1 year	—	-15.82%	—
Max Drawdown (3Y) Largest decline over 3 years	—	-15.82%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-18.72%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-51.00%	—
Current Drawdown Current decline from peak	-99.26%	-5.89%	-93.37%
Average Drawdown Average peak-to-trough decline	-72.80%	-9.45%	-63.35%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	6.00%	—

Volatility

Volatility by Period

	XDEF	ITA	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	8.50%	—
Volatility (6M) Calculated over the trailing 6-month period	—	18.55%	—
Volatility (1Y) Calculated over the trailing 1-year period	148.83%	21.95%	+126.88%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	148.83%	20.23%	+128.60%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	148.83%	23.26%	+125.57%

XDEF vs. ITA - Expense Ratio Comparison

XDEF has a 0.35% expense ratio, which is lower than ITA's 0.38% expense ratio.

Dividends

XDEF vs. ITA - Dividend Comparison

XDEF's dividend yield for the trailing twelve months is around 1.51%, more than ITA's 0.45% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ITA iShares U.S. Aerospace & Defense ETF	0.45%	0.55%	0.85%	0.93%	0.95%	0.82%	1.07%	1.54%	1.13%	0.91%	1.07%	1.04%
XDEF Xtrackers Europe Defense Technologies ETF	1.51%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both XDEF and ITA in my portfolio?

XDEF and ITA have a correlation of 0.68, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, XDEF or ITA?

On fees, XDEF is cheaper at 0.35% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, XDEF or ITA?

XDEF is cheaper with a 0.35% expense ratio, compared with 0.38% for ITA.

Which ETF pays a higher dividend yield, XDEF or ITA?

XDEF has the higher dividend yield at 1.51%, compared with 0.45% for ITA.

What is the main difference between XDEF and ITA?

XDEF tracks STOXX Europe Total Market Defence, Space and Cybersecurity Innovation 50-25 Index, while ITA tracks Dow Jones U.S. Select Aerospace & Defense Index. They also come from different issuers: Xtrackers and iShares. Their fees differ too: 0.35% for XDEF and 0.38% for ITA.