ITA vs SPY
iShares US Aerospace & Defense ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. ITA delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | ITA | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.37% | 0.09% | |
| AUM | $14.9B | $821.1B | |
| Dividend Yield | 0.43% | 1.01% | |
| Holdings | 53 | 505 | |
| YTD Return | +6.91% | +12.68% | |
| 1Y Return | +22.19% | +21.82% | |
| 3Y Return (annualized) | +28.16% | +21.98% | |
| 5Y Return (annualized) | +18.54% | +12.89% | |
| Volatility (annualized) | 20.1% | 15.3% | |
| Max Drawdown | -59.7% | -56.5% | |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | May 1, 2006 | Jan 22, 1993 |
ITA vs SPY Performance
iShares US Aerospace & Defense ETF (ITA) is a ETF from iShares by BlackRock (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year ITA returned +22.19% while SPY returned +21.82%. Year to date, ITA is up 6.91% versus a gain of 12.68% for SPY.
Over three years, ITA compounded at +28.16% per year against +21.98% for SPY; over five years the annualized figures are +18.54% and +12.89% respectively. Across the full 20-year window we track, ITA has the edge at +12.69% annualized vs +8.81%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ITA has been the more volatile fund, with annualized monthly volatility of 20.1% compared with 15.3% for SPY. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -59.7% for ITA and -56.5% for SPY. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.79. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
ITA charges 0.37% per year while SPY charges 0.09%. On a $10,000 position that is $37 vs $9 annually, a gap of $28 per year that compounds over a long holding period. On income, ITA currently yields 0.43% against 1.01% for SPY.
Holdings Overlap
ITA and SPY share 12 holdings out of 542 unique holdings combined, representing a 2.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, ITA or SPY?
ITA has an expense ratio of 0.37% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $28 per year of difference.
Which performed better, ITA or SPY?
Over the past year ITA returned +22.19% vs +21.82% for SPY, so ITA leads on 1-year performance. Over the longest common window we track (20 years), ITA annualized +12.69% vs +8.81% for SPY. Past performance does not guarantee future results.
Which is riskier, ITA or SPY?
ITA has been the more volatile fund at 20.1% annualized versus 15.3% for SPY. Worst drawdown: ITA -59.7% vs SPY -56.5%.
Should I hold both ITA and SPY?
ITA and SPY have a monthly-return correlation of 0.79, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ITA and SPY?
ITA and SPY share 12 common holdings with a 2.2% weight overlap. Combined, they hold 542 unique securities.
Which pays a higher dividend, ITA or SPY?
ITA yields 0.43% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.
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