ITA vs VTI
iShares US Aerospace & Defense ETF vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | ITA | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.37% | 0.03% | |
| AUM | $14.9B | $666.9B | |
| Dividend Yield | 0.43% | 1.07% | |
| Holdings | 53 | 3,543 | |
| YTD Return | +5.13% | +12.79% | |
| 1Y Return | +19.92% | +20.47% | |
| 3Y Return (annualized) | +27.85% | +21.53% | |
| 5Y Return (annualized) | +17.98% | +11.84% | |
| Volatility (annualized) | 20.1% | 15.3% | |
| Max Drawdown | -59.7% | -56.6% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 1, 2006 | May 24, 2001 |
ITA vs VTI Performance
iShares US Aerospace & Defense ETF (ITA) is a ETF from iShares by BlackRock (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year ITA returned +19.92% while VTI returned +20.47%. Year to date, ITA is up 5.13% versus a gain of 12.79% for VTI.
Over three years, ITA compounded at +27.85% per year against +21.53% for VTI; over five years the annualized figures are +17.98% and +11.84% respectively. Across the full 20-year window we track, ITA has the edge at +12.60% annualized vs +8.07%. 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 VTI. 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 -56.6% for VTI. 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 0.80. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
ITA charges 0.37% per year while VTI 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 1.07% for VTI.
Holdings Overlap
ITA and VTI share 42 holdings out of 2795 unique holdings combined, representing a 2.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, ITA or VTI?
ITA has an expense ratio of 0.37% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $34 per year of difference.
Which performed better, ITA or VTI?
Over the past year ITA returned +19.92% vs +20.47% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (20 years), ITA annualized +12.60% vs +8.07% for VTI. Past performance does not guarantee future results.
Which is riskier, ITA or VTI?
ITA has been the more volatile fund at 20.1% annualized versus 15.3% for VTI. Worst drawdown: ITA -59.7% vs VTI -56.6%.
Should I hold both ITA and VTI?
ITA and VTI have a monthly-return correlation of 0.80, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ITA and VTI?
ITA and VTI share 42 common holdings with a 2.3% weight overlap. Combined, they hold 2795 unique securities.
Which pays a higher dividend, ITA or VTI?
ITA yields 0.43% while VTI yields 1.07%, so VTI currently pays the higher dividend yield.
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