ITA vs VOO
iShares US Aerospace & Defense ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. ITA delivered stronger 1-year returns. VOO offers more diversification with 509 holdings.
Side-by-Side Comparison
| Metric | ITA | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.37% | 0.03% | |
| AUM | $14.9B | $997.4B | |
| Dividend Yield | 0.43% | 1.08% | |
| Holdings | 53 | 509 | |
| YTD Return | +6.91% | +12.68% | |
| 1Y Return | +22.19% | +21.87% | |
| 3Y Return (annualized) | +28.16% | +22.06% | |
| 5Y Return (annualized) | +18.54% | +12.95% | |
| Volatility (annualized) | 20.1% | 14.1% | |
| Max Drawdown | -59.7% | -34.3% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 1, 2006 | Sep 7, 2010 |
ITA vs VOO Performance
iShares US Aerospace & Defense ETF (ITA) is a ETF from iShares by BlackRock (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year ITA returned +22.19% while VOO returned +21.87%. Year to date, ITA is up 6.91% versus a gain of 12.68% for VOO.
Over three years, ITA compounded at +28.16% per year against +22.06% for VOO; over five years the annualized figures are +18.54% and +12.95% respectively. Across the full 16-year window we track, VOO has the edge at +13.47% annualized vs +12.69%. 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 14.1% for VOO. 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 -34.3% for VOO. 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 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
ITA charges 0.37% per year while VOO charges 0.03%. On a $10,000 position that is $37 vs $3 annually, a gap of $34 per year that compounds over a long holding period. On income, ITA currently yields 0.43% against 1.08% for VOO.
Holdings Overlap
ITA and VOO share 12 holdings out of 543 unique holdings combined, representing a 2.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, ITA or VOO?
ITA has an expense ratio of 0.37% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $34 per year of difference.
Which performed better, ITA or VOO?
Over the past year ITA returned +22.19% vs +21.87% for VOO, so ITA leads on 1-year performance. Over the longest common window we track (16 years), ITA annualized +12.69% vs +13.47% for VOO. Past performance does not guarantee future results.
Which is riskier, ITA or VOO?
ITA has been the more volatile fund at 20.1% annualized versus 14.1% for VOO. Worst drawdown: ITA -59.7% vs VOO -34.3%.
Should I hold both ITA and VOO?
ITA and VOO have a monthly-return correlation of 0.74, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ITA and VOO?
ITA and VOO share 12 common holdings with a 2.1% weight overlap. Combined, they hold 543 unique securities.
Which pays a higher dividend, ITA or VOO?
ITA yields 0.43% while VOO yields 1.08%, so VOO currently pays the higher dividend yield.
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