ITA vs VYM
iShares US Aerospace & Defense ETF vs Vanguard High Dividend Yield ETF
Which is better, ITA or VYM?
Large Cap Blend against Large Cap Value.
VYM has a lower expense ratio. ITA led over 3Y, 5Y and the full window, VYM over 1Y. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 77.3%.
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 | VYM |
|---|---|---|
| Expense Ratio | 0.37% | 0.04%Best |
| AUM | $13.5B | $81.6B |
| Dividend Yield | 0.47% | 2.22% |
| Holdings | 53 | 613 |
| YTD Return | -1.35% | +13.91%Best |
| 1Y Return | +9.87% | +17.57%Best |
| 3Y Return (annualized) | +26.72%Best | +18.12% |
| 5Y Return (annualized) | +17.09%Best | +12.17% |
| Volatility (annualized) | 20.3% | 14.5%Best |
| Max Drawdown | -59.7% | -58.8%Best |
| $10,000 over 5 years | $22,009Best | $17,758 |
| Top 10 Weight | 77.3% | 25.9%Best |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | May 1, 2006 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Nov 16, 2006 to Sep 11, 2026 (19.8 years).
ITA vs VYM 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 19.8 years both funds cover.
ITA vs VYM Performance
iShares US Aerospace & Defense ETF (ITA) is an ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year ITA returned +9.87% while VYM returned +17.57%. Year to date, ITA is down 1.35% versus a gain of 13.91% for VYM.
Over three years, ITA compounded at +26.72% per year against +18.12% for VYM; over five years the annualized figures are +17.09% and +12.17% respectively. Across the full 20-year window we track, ITA has the edge at +12.43% annualized vs +6.95%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ITA has been the more volatile fund, with annualized monthly volatility of 20.3% compared with 14.5% for VYM. 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 -58.8% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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 VYM charges 0.04%. On a $10,000 position that is $37 vs $4 annually, a gap of $33 per year that compounds over a long holding period. On income, ITA currently yields 0.47% against 2.22% for VYM.
Holdings Overlap
17.5% of ITA's money is in holdings VYM also owns. 1.4% of VYM's money is in holdings ITA also owns.
ITA and VYM share little of their money.
5 positions in common, counted across the 50 positions we hold weights for in ITA and 603 in VYM, against full books of 53 and 613.
What only one of them owns
Measured across the 50 and 603 positions we hold weights for.
VYM holds 563 positions ITA does not, 96.1% of the fund.
Largest: AVGO 7.29%, JPM 3.38%, JNJ 2.54%, XOM 2.36%, CAT 2.01%
You are not choosing between two funds in isolation.
Whichever of ITA and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, ITA or VYM?
ITA has an expense ratio of 0.37% while VYM charges 0.04%. VYM is the cheaper option, by $33 a year on a $10,000 investment.
Which performed better, ITA or VYM?
Over the past year ITA returned +9.87% vs +17.57% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), ITA annualized +12.43% vs +6.95% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, ITA or VYM?
ITA has been the more volatile fund at 20.3% annualized versus 14.5% for VYM. Worst drawdown: ITA -59.7% vs VYM -58.8%.
Should I hold both ITA and VYM?
ITA and VYM have a monthly-return correlation of 0.80, 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 VYM?
17.5% of ITA's money is in holdings VYM also owns. 1.4% of VYM's is in holdings ITA also owns. They hold 5 positions in common, counted across the 50 positions we hold weights for in ITA and 603 in VYM.
Which pays a higher dividend, ITA or VYM?
ITA yields 0.47% while VYM yields 2.22%, so VYM currently pays the higher dividend yield.
Is VYM better than ITA?
VYM has a lower expense ratio. ITA led over 3Y, 5Y and the full window, VYM over 1Y. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 77.3%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.