ITA vs SPY
iShares US Aerospace & Defense ETF vs State Street SPDR S&P 500 ETF Trust
Which is better, ITA or SPY?
Each has led over a different period.
SPY has a lower expense ratio. ITA led over 3Y, 5Y and the full window, SPY over 1Y. SPY is less concentrated, with 38.9% of the fund in its ten largest positions against 75.5%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | ITA | SPY |
|---|---|---|
| Expense Ratio | 0.37% | 0.09%Best |
| AUM | $11.6B | $777.9B |
| Dividend Yield | 0.26% | 1.00% |
| Holdings | 108 | 1,011 |
| YTD Return | -0.78% | +12.09%Best |
| 1Y Return | +4.64% | +12.45%Best |
| 3Y Return (annualized) | +24.90%Best | +21.45% |
| 5Y Return (annualized) | +16.46%Best | +11.87% |
| Volatility (annualized) | 20.1% | 15.2%Best |
| Max Drawdown | -59.7% | -56.5%Best |
| $10,000 over 5 years | $21,423Best | $17,521 |
| Top 10 Weight | 75.5% | 38.9%Best |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | May 1, 2006 | Jan 22, 1993 |
Volatility and max drawdown are measured over the window both funds cover: May 5, 2006 to Nov 11, 2026 (20.5 years).
ITA vs SPY growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 20.5 years both funds cover.
ITA vs SPY Performance
iShares US Aerospace & Defense ETF (ITA) is an ETF from iShares by BlackRock (US) and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year ITA returned +4.64% while SPY returned +12.45%. Year to date, ITA is down 0.78% versus a gain of 12.09% for SPY.
Over three years, ITA compounded at +24.90% per year against +21.45% for SPY; over five years the annualized figures are +16.46% and +11.87% respectively. Across the full 21-year window we track, ITA has the edge at +12.14% annualized vs +9.29%.
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 15.2% 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 what each fund did in the worst stretch of the window measured above.
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 0.26% against 1.00% for SPY.
Holdings Overlap
79.9% of ITA's money is in holdings SPY also owns. 1.9% of SPY's money is in holdings ITA also owns.
Most of ITA is already inside SPY. Owning both mostly buys the same companies twice.
13 positions in common, counted across the 51 positions we hold weights for in ITA and 504 in SPY, against full books of 108 and 1,011.
What only one of them owns
Our book lists 486 positions for SPY that do not appear in our book for ITA (97.8% of the fund), and 38 for ITA that do not appear in SPY (20.0%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in ITA | Weight in SPY | Difference |
|---|---|---|---|
| GEGeneral Electric Co. | 20.90% | 0.48% | 20.42% |
| RTXRtx Corp | 16.49% | 0.38% | 16.11% |
| BABoeing Co | 7.53% | 0.22% | 7.31% |
| LMTLockheed Martin | 4.78% | 0.16% | 4.62% |
| TDGTransdigm Group Inc. | 4.74% | 0.09% | 4.65% |
| NOCNorthrop Grumman Corp. | 4.62% | 0.10% | 4.52% |
| GDGeneral Dynamics Corp. | 4.56% | 0.13% | 4.43% |
| HWMHowmet Aerospace | 4.49% | 0.13% | 4.36% |
| HONAHoneywell Aerospace Inc | 3.91% | 0.07% | 3.84% |
| LHXL3Harris Technologies Inc. | 3.48% | 0.07% | 3.41% |
79.9% of ITA is already inside SPY.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
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, by $28 a year on a $10,000 investment.
Which performed better, ITA or SPY?
Over the past year ITA returned +4.64% vs +12.45% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (21 years), ITA annualized +12.14% vs +9.29% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, ITA or SPY?
ITA has been the more volatile fund at 20.1% annualized versus 15.2% 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 their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between ITA and SPY?
79.9% of ITA's money is in holdings SPY also owns. 1.9% of SPY's is in holdings ITA also owns. They hold 13 positions in common, counted across the 51 positions we hold weights for in ITA and 504 in SPY.
Which pays a higher dividend, ITA or SPY?
ITA yields 0.26% while SPY yields 1.00%, so SPY currently pays the higher dividend yield.
Is SPY better than ITA?
SPY has a lower expense ratio. ITA led over 3Y, 5Y and the full window, SPY over 1Y. SPY is less concentrated, with 38.9% of the fund in its ten largest positions against 75.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.