# How L3Harris Technologies (LHX) compares with the whole market and its popular alternatives

> Source: EasyCompare research, https://easycompare.io/research/lhx
> Data as of October 20, 2026. Total returns include reinvested dividends. Past performance does not predict future results; nothing here is investment advice.

Built by QuantCommons' quantitative engine, this page is about relative opportunity, not data on LHX alone. It places LHX (L3Harris Technologies, Inc.) against 20+ popular alternatives, its neighboring categories and the entire market of over 10,000 U.S.-listed stocks and ETFs, and surfaces what has done better on consistent outperformance, return for the risk taken, behavior in real market crashes and diversification. The result is a clearer view of where LHX stands in the market, and of the alternatives worth a closer look.

Period covered: LHX's full trading record, from October 1986 through September 2026. All returns include reinvested dividends. Data as of October 20, 2026.

## Key findings

- **Right now:** LHX has gone against the market, falling 28.0% over the past 6 months while the S&P 500 rose 9.1%. LHX is 33.5% below its high, bear-market territory, while the S&P 500 sits 1.3% below a record.
- **Stock or market?:** Not a move of its own: the aerospace & defense ETF ITA (iShares U.S. Aerospace & Defense ETF) fell 10.0% over the past 3 months, with BA (Boeing, down 9.1%) and GD (General Dynamics, down 6.6%), while the S&P 500 rose 3.9%. Its aerospace & defense peers did not move as one over the past 3 months: LMT (Lockheed Martin) rose 8.4%, while CW (Curtiss-Wright) fell 30.1%.
- **Past 1 to 3 years:** Over the past year, LHX fell 13.0% while the S&P 500 rose 15.8%. The same gap shows up over 3 years (49.6% against 89.3%).
- **Long term:** LHX turned $10,000 into $32,900 over the past decade, against $42,100 in the S&P 500.
- **In a crash:** In the 2015 China and oil sell-off, LHX fell 19.9%, against 12.8% for the S&P 500. That was more than RTX (15.4%) but less than BA (Boeing, 26.8%). LHX fell further than the S&P 500 in two of the last three sell-offs, including the 2015 China and oil sell-off (19.9% against 12.8%).
- **Diversification:** Against the S&P 500, LHX has a correlation of 0.32 over 5 years, less closely than 66% of stocks worth at least $300 million. Next to an index fund it is some diversification, but not a hedge. Over 10 years LHX gave up some upside in exchange for smaller losses: 72% of the S&P 500's gains in rising months and 65% of its losses in falling ones, with a beta of 0.70.
- **Better options**
  - **Nearby categories and themes:** CTAS (Cintas, business services) and ADP (Automatic Data Processing, business services) earned more than LHX with less volatility over the past 5 years. CTAS returned 16.5% a year at 23.1% volatility, against 2.5% a year at 24.9%.
  - **Whole market:** 788 of the 3,633 stocks and funds worth at least $500 million earned more than LHX with less volatility over the past 5 years, among them VTI (Vanguard Morningstar Total Stock Market ETF), VOO (Vanguard S&P 500 ETF) and BRK-B (Berkshire Hathaway).

## How much would $10,000 in LHX have grown?

This chart tracks a hypothetical $10,000 investment in LHX over the past 29 years, with dividends reinvested, alongside the same amount in the S&P 500, investments that ended ahead of LHX over the same span and LHX's popular alternatives, among those that traded for the entire period.

- $10,000 invested in LHX at the end of September 1997 would have grown to $250,828 by September 2026, more than the $132,907 it would have become in SPY, an S&P 500 fund.
- Five of the eight other investments on the chart ended ahead of LHX, and HEI finished highest, at $1,347,388.

## LHX at a glance

This section summarizes the key facts about the stock, its returns over periods from one to ten years and the risk it has carried, with dividends reinvested throughout.

- LHX is still 33.5% below its all-time high.
- LHX's deepest decline since it began trading in 1986 was 62.8%, from October 1989 to October 1990. It took 25 months from the low to climb back to its old high.
- Over 29 full calendar years, LHX's best was 2004, when it returned 64.1%, and its worst was 2008, when it lost 38.4%. It lost money in eight of those years.

- Type: Stock, Industrials (Aerospace & Defense)
- Trading since: October 17, 1986
- Market value: $46B
- Volatility (5 years): 24.9%; Sharpe ratio: 0.22
- Worst decline ever: −62.8%, from October 11, 1989 to October 26, 1990; back at its high by November 2, 1992

| Period | LHX total return |
| --- | --- |
| 1 month | +0.7% |
| 3 months | −10.9% |
| 6 months | −28.0% |
| year to date | −17.3% |
| 1 year | −13.0% |
| 3 years | +49.6% |
| 5 years | +13.0% |
| 10 years | +229% |

## LHX against the whole market

Where LHX ranks among every stock and fund, and what across the market has done better.

### How does LHX rank among all stocks?

This section ranks LHX on return, volatility, risk-adjusted return and worst decline against every stock worth at least $300 million with enough history.

- LHX's worst decline of the past 10 years ranks in the top 5% of the 2,187 stocks worth at least $300 million, where the top fell the least.

| Measure | LHX | Rank |
| --- | --- | --- |
| 1-year return | −13.0% | 2,438 of 3,287 (top 75%) |
| 3-year return | +49.6% | 1,545 of 3,017 (top 52%) |
| 5-year return | +13.0% | 1,555 of 2,893 (top 54%) |
| 10-year return | +229% | 771 of 2,202 (top 36%) |
| Volatility, 5 years | 24.9% | 312 of 2,893 (top 11%) |
| Sharpe ratio, 5 years | 0.22 | 1,786 of 2,893 (top 62%) |
| Worst decline, past 10 years | −38.2% | 109 of 2,187 (top 5%) |

### What has beaten LHX on both return and risk?

Each dot is an investment, placed by how much it earned a year over the past 5 years (higher is better) and how much its price swung, its volatility (further left is calmer).

- 133 stocks and 655 ETFs worth at least $500 million sit in the green region: each earned more than LHX over the past 5 years with smaller price swings. That is 22% of the 3,633 screened.
- Among those with at least half LHX's swings, DXJ has the best return for its risk: 26.6% a year at 19.1% volatility, 23% less than LHX's 24.9%, and a Sharpe ratio (return above cash per unit of volatility) of 1.34 against 0.22 for LHX.
- Among LHX's popular alternatives, GD is in the region. GD earned 12.9% a year against 2.5% a year for LHX, at 20.8% volatility, 16% less than LHX's 24.9%.

### Is there a better investment than LHX?

The table below lists investments that beat LHX over the past 5 years on at least one of these measures: a higher annual return with lower volatility, a higher annual return at similar volatility, a similar return with lower volatility, a higher Sharpe ratio with a smaller worst decline, a higher total return in most periods from 3 months to 10 years, or smaller losses in recent market crashes.

- Among LHX's popular alternatives, GD earned more than LHX with less volatility over the past 5 years: 12.9% a year at 20.8% volatility, against 2.5% a year at 24.9%.
- Looking beyond its popular alternatives, CTAS (business services) and ADP (business services) earned more than LHX with less volatility over the past 5 years. CTAS returned 16.5% a year at 23.1% volatility, against 2.5% a year at 24.9%.
- Across the whole market, 788 of the 3,633 stocks and funds worth at least $500 million earned more than LHX with less volatility over the past 5 years, among them VTI, VOO and BRK-B.

The 15 strongest of 788 investments that beat LHX over the past 5 years, out of 3,633 stocks and funds worth at least $500 million.

| Investment | Group | Annual return (5 years) | Volatility | Sharpe | Worst decline (10 years) | 10Y return | Correlation with LHX | Better on |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| LHX: L3Harris Technologies, Inc. (this page) |  | +2.5% | 24.9% | 0.22 | −38.2% | +229% |  |  |
| [VIG](https://easycompare.io/research/vig): Vanguard Dividend Appreciation ETF | US Dividend Equity | +10.4% | 14.1% | 0.78 | −31.7% | +258% | 0.39 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [WM](https://easycompare.io/research/wm): Waste Management, Inc. | Environmental Services | +9.3% | 19.2% | 0.56 | −30.1% | +344% | 0.21 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [WCN](https://easycompare.io/research/wcn): Waste Connections, Inc. | Environmental Services | +6.1% | 20.0% | 0.40 | −31.6% | +270% | 0.11 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [WMT](https://easycompare.io/research/wmt): Walmart Inc. | Discount Retail | +20.8% | 22.6% | 0.96 | −25.7% | +508% | 0.25 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [BRK-B](https://easycompare.io/research/brk-b): Berkshire Hathaway Inc. | Insurance | +13.4% | 17.1% | 0.82 | −29.6% | +274% | 0.18 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [JNJ](https://easycompare.io/research/jnj): Johnson & Johnson | Pharmaceuticals | +12.7% | 17.9% | 0.76 | −27.4% | +196% | 0.25 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| LVHI: Franklin International Low Volatility High Dividend Index ETF | International Equity | +17.0% | 11.1% | 1.48 | −32.4% | +194% | 0.34 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [COST](https://easycompare.io/research/cost): Costco Wholesale Corporation | Discount Retail | +17.4% | 22.9% | 0.82 | −31.4% | +685% | 0.32 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [NVS](https://easycompare.io/research/nvs): Novartis AG | Pharmaceuticals | +17.1% | 20.7% | 0.87 | −26.8% | +226% | 0.34 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [GLD](https://easycompare.io/research/gld): SPDR Gold Shares | Gold | +17.7% | 18.9% | 0.96 | −26.4% | +213% | 0.34 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [LIN](https://easycompare.io/research/lin): Linde plc | Chemicals | +11.5% | 20.9% | 0.63 | −32.6% | +394% | 0.30 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| PTNQ: Pacer Trendpilot 100 ETF | Technology | +9.7% | 14.1% | 0.73 | −28.1% | +305% | 0.02 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [COR](https://easycompare.io/research/cor): Cencora, Inc. | Health Care Distribution | +24.2% | 22.8% | 1.07 | −32.4% | +406% | 0.36 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [IWF](https://easycompare.io/research/iwf): iShares Russell 1000 Growth ETF | US Large-Cap Growth | +11.7% | 21.8% | 0.62 | −32.7% | +416% | 0.21 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [DFAC](https://easycompare.io/research/dfac): Dimensional - US Core Equity 2 ETF | US Total Market | +11.4% | 17.0% | 0.72 | −23.1% | — | 0.42 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |

## LHX against its popular alternatives

The investments people most often weigh against LHX, compared period by period and year by year.

### How do LHX's risk and return compare with its alternatives?

This map plots each investment's annual return over the past 5 years against its volatility, the size of its typical price swings.

- RTX, GD and LMT were both more rewarding and calmer than LHX over the past 5 years, earning a higher annual return with lower volatility.
- Over the past 5 years, LHX returned 2.5% a year, less than the S&P 500's 12.7%, with higher volatility (24.9% against 17.1%).

### Has LHX consistently beaten its popular alternatives?

This section compares LHX with the investments people most often weigh against it, checking each one over eight periods from one month to ten years.

- Ten of the 25 popular alternatives, led by TDG, ATI and HEI, outperformed LHX in at least 3 of 5 short-term and 2 of 3 long-term timeframes.
- TDG, ATI and HEI outperformed LHX in every long-term period and in all but one short-term period, the most consistent record in the group.
- LMT and NOC earned more for the risk they took than LHX (a higher Sharpe ratio) and fell less in their worst decline of the past 10 years.

| Investment | 1Y return | 3Y return | 5Y return | 10Y return | Periods ahead of LHX | Verdict | Sharpe |
| --- | --- | --- | --- | --- | --- | --- | --- |
| LHX: L3Harris Technologies, Inc. (this page) | −13.0% | +49.6% | +13.0% | +229% |  |  | 0.22 |
| [TDG](https://easycompare.io/research/tdg): TransDigm Group Incorporated | −12.2% | +62.5% | +114% | +543% | 5/5 short-term, 3/3 long-term | all-weather | 0.69 |
| ATI: ATI Inc. | +125% | +415% | +1,008% | +929% | 4/5 short-term, 3/3 long-term | all-weather | 1.34 |
| [HEI](https://easycompare.io/research/hei): HEICO Corporation | −2.4% | +93.4% | +122% | +809% | 4/5 short-term, 3/3 long-term | all-weather | 0.71 |
| CACI: CACI International Inc | +15.4% | +85.8% | +115% | +499% | 4/5 short-term, 3/3 long-term | all-weather | 0.66 |
| [RTX](https://easycompare.io/research/rtx): RTX Corporation | +22.1% | +183% | +135% | +317% | 4/5 short-term, 3/3 long-term | all-weather | 0.83 |
| [HWM](https://easycompare.io/research/hwm): Howmet Aerospace Inc. | +10.2% | +391% | +594% | +1,028% | 3/5 short-term, 3/3 long-term | consistent | 1.36 |
| [PLTR](https://easycompare.io/research/pltr): Palantir Technologies Inc. | +6.1% | +1,096% | +695% | — | 5/5 short-term, 2/3 long-term | consistent | 0.95 |
| [GD](https://easycompare.io/research/gd): General Dynamics Corporation | +4.0% | +55.4% | +83.3% | +184% | 4/5 short-term, 2/3 long-term | consistent | 0.69 |
| AIR: AAR Corp. | +18.8% | +71.7% | +196% | +224% | 3/5 short-term, 2/3 long-term | consistent | 0.78 |
| MRCY: Mercury Systems, Inc. | −3.3% | +100% | +40.9% | +212% | 3/5 short-term, 2/3 long-term | consistent | 0.38 |
| DRS: Leonardo DRS, Inc. | −14.2% | +82.9% | +228% | +3,294% | 2/5 short-term, 3/3 long-term |  | 0.77 |
| CW: Curtiss-Wright Corporation | −11.6% | +148% | +283% | +512% | 2/5 short-term, 3/3 long-term |  | 1.08 |
| KTOS: Kratos Defense & Security Solutions, Inc. | −55.0% | +127% | +71.3% | +515% | 0/5 short-term, 3/3 long-term |  | 0.47 |
| BWXT: BWX Technologies, Inc. | −35.0% | +79.8% | +145% | +289% | 0/5 short-term, 3/3 long-term |  | 0.70 |
| LDOS: Leidos Holdings, Inc. | −32.2% | +42.4% | +35.6% | +253% | 2/5 short-term, 2/3 long-term |  | 0.36 |
| AVAV: AeroVironment, Inc. | −67.7% | +0.7% | +27.1% | +426% | 0/5 short-term, 2/3 long-term |  | 0.37 |
| RKLB: Rocket Lab USA, Inc. | −24.4% | +1,144% | +300% | — | 0/5 short-term, 2/3 long-term |  | 0.74 |
| [LMT](https://easycompare.io/research/lmt): Lockheed Martin Corporation | +11.3% | +33.8% | +69.0% | +204% | 5/5 short-term, 1/3 long-term |  | 0.56 |
| [NOC](https://easycompare.io/research/noc): Northrop Grumman Corporation | −9.8% | +15.6% | +44.5% | +188% | 5/5 short-term, 1/3 long-term |  | 0.41 |
| SAIC: Science Applications International Corporation | +37.6% | +27.6% | +60.1% | +135% | 5/5 short-term, 1/3 long-term |  | 0.46 |
| VSAT: Viasat, Inc. | +62.2% | +185% | +8.6% | −17.6% | 3/5 short-term, 1/3 long-term |  | 0.40 |
| HII: Huntington Ingalls Industries, Inc. | −3.2% | +32.2% | +43.2% | +110% | 2/5 short-term, 1/3 long-term |  | 0.39 |
| [BA](https://easycompare.io/research/ba): The Boeing Company | −12.2% | +5.8% | −11.9% | +52.4% | 4/5 short-term, 0/3 long-term |  | 0.12 |
| BAH: Booz Allen Hamilton Holding Corporation | −23.5% | −34.5% | +2.0% | +197% | 3/5 short-term, 0/3 long-term |  | 0.18 |
| TXT: Textron Inc. | −6.3% | +1.9% | +4.1% | +97.9% | 3/5 short-term, 0/3 long-term |  | 0.17 |

### How did LHX do year by year?

This table shows each investment's total return in every full calendar year since 1997, along with where LHX ranked among its popular alternatives each year.

- Among its popular alternatives, RKLB came out ahead of LHX most often, in four of the five years both traded.
- Ranked against its popular alternatives each year, LHX finished in the top quarter in five of 29 years and in the bottom quarter in two. In 2025, it ranked 13 of 26.
- LHX finished ahead of the S&P 500 in 18 of its 29 full calendar years.

| Year | LHX | SPY |
| --- | --- | --- |
| 2025 | +42.3% | +17.7% |
| 2024 | +1.9% | +24.9% |
| 2023 | +3.7% | +26.2% |
| 2022 | −0.5% | −18.2% |
| 2021 | +15.0% | +28.7% |
| 2020 | −2.8% | +18.3% |
| 2019 | +49.2% | +31.2% |
| 2018 | −3.4% | −4.6% |
| 2017 | +40.8% | +21.7% |
| 2016 | +20.7% | +12.0% |

## Risk and diversification

How LHX has fallen, how it held up in crashes beside the S&P 500 and its popular alternatives, and what moves independently of it.

### What were LHX's worst declines?

A drawdown is the decline from a peak to the lowest point before a new high.

- In all three of LHX's worst declines, the S&P 500 held up better over the same dates.
- Not every decline was the market's doing: LHX fell 59.6% from March 1998 to November 1999, while the S&P 500 rose 25.3%.
- The slowest recovery came after LHX fell 57.1% from May 2008 to April 2009; it did not regain that peak until July 2013, four years later.

| Decline | Peak | Low | Back at the high | SPY over the same dates | Market event |
| --- | --- | --- | --- | --- | --- |
| −62.8% | October 11, 1989 | October 26, 1990 | November 2, 1992 | — |  |
| −59.6% | March 25, 1998 | November 1, 1999 | March 13, 2000 | +25.3% |  |
| −57.1% | May 30, 2008 | April 20, 2009 | July 30, 2013 | −39.0% | 2008 financial crisis |
| −45.2% | March 23, 2000 | April 3, 2001 | April 17, 2002 | −26.9% | dot-com bust |
| −44.9% | May 13, 1987 | December 4, 1987 | October 6, 1989 | — |  |

### How did LHX do in stock market crashes?

This section measures how far LHX, the S&P 500 and each alternative fell from peak to trough during every major market crash since 2000.

- Among its popular alternatives, LMT held up best, falling less than LHX in seven of the ten crashes they both traded through.
- LHX fell further than the S&P 500 in five of the ten crashes it has traded through. The clearest case was the 2015 China and oil sell-off, when LHX fell 19.9% and the S&P 500 fell 12.8%.

| Crash | Dates | LHX fall | SPY fall |
| --- | --- | --- | --- |
| Dot-com bust | March 10, 2000 to October 9, 2002 | −45.2% | −47.5% |
| Global financial crisis | October 9, 2007 to March 9, 2009 | −56.1% | −55.2% |
| Flash crash | May 6, 2010 to May 7, 2010 | −2.9% | −1.5% |
| Euro debt crisis | July 22, 2011 to October 3, 2011 | −22.8% | −17.9% |
| China devaluation & oil rout | August 10, 2015 to February 11, 2016 | −19.9% | −12.8% |
| Volmageddon | February 2, 2018 to February 9, 2018 | −4.9% | −6.5% |
| Q4 2018 selloff | September 21, 2018 to December 24, 2018 | −26.3% | −19.3% |
| COVID crash | February 19, 2020 to March 23, 2020 | −33.2% | −33.7% |
| 2022 bear market | January 4, 2022 to October 12, 2022 | −22.2% | −24.5% |
| SVB / regional bank stress | March 8, 2023 to March 13, 2023 | −2.6% | −3.4% |

### How closely does LHX move with the S&P 500?

Upside capture measures how much of the S&P 500's gains an investment kept in the months the market rose, and downside capture how much of its losses it took in the months the market fell.

- Over the past 10 years, LHX captured 72% of the S&P 500's gains in rising months and 65% of its losses in falling months, with a beta of 0.70. That is a defensive profile: it gave up some of the market's upside in exchange for smaller losses.
- DRS took just 4% of the S&P 500's losses, against 65% for LHX, while still keeping 125% of its gains.
- 11 of the 23 popular alternatives had a higher capture ratio (upside capture divided by downside capture) than LHX's 1.11, led by DRS, NOC and CACI.

Measured over the past 10 years of monthly returns against SPY.

| Investment | Upside capture | Downside capture | Beta |
| --- | --- | --- | --- |
| LHX: L3Harris Technologies, Inc. (this page) | 72.0% | 65.0% | 0.70 |
| [TDG](https://easycompare.io/research/tdg): TransDigm Group Incorporated | 112% | 97.0% | 1.25 |
| ATI: ATI Inc. | 141% | 116% | 1.37 |
| [HEI](https://easycompare.io/research/hei): HEICO Corporation | 118% | 85.0% | 1.15 |
| CACI: CACI International Inc | 94.0% | 62.0% | 0.79 |
| [RTX](https://easycompare.io/research/rtx): RTX Corporation | 94.0% | 91.0% | 0.89 |
| [HWM](https://easycompare.io/research/hwm): Howmet Aerospace Inc. | 142% | 115% | 1.41 |
| [GD](https://easycompare.io/research/gd): General Dynamics Corporation | 68.0% | 68.0% | 0.71 |
| AIR: AAR Corp. | 105% | 124% | 1.43 |
| MRCY: Mercury Systems, Inc. | 84.0% | 82.0% | 0.97 |
| DRS: Leonardo DRS, Inc. | 125% | 4.0% | 0.66 |
| CW: Curtiss-Wright Corporation | 103% | 77.0% | 1.20 |
| KTOS: Kratos Defense & Security Solutions, Inc. | 133% | 135% | 0.98 |
| BWXT: BWX Technologies, Inc. | 82.0% | 68.0% | 0.87 |
| LDOS: Leidos Holdings, Inc. | 78.0% | 73.0% | 0.73 |
| AVAV: AeroVironment, Inc. | 120% | 114% | 0.90 |
| [LMT](https://easycompare.io/research/lmt): Lockheed Martin Corporation | 58.0% | 48.0% | 0.52 |
| [NOC](https://easycompare.io/research/noc): Northrop Grumman Corporation | 49.0% | 32.0% | 0.35 |
| SAIC: Science Applications International Corporation | 44.0% | 36.0% | 0.59 |
| VSAT: Viasat, Inc. | 96.0% | 188% | 1.44 |
| HII: Huntington Ingalls Industries, Inc. | 71.0% | 90.0% | 0.60 |
| [BA](https://easycompare.io/research/ba): The Boeing Company | 93.0% | 152% | 1.42 |
| BAH: Booz Allen Hamilton Holding Corporation | 65.0% | 63.0% | 0.54 |
| TXT: Textron Inc. | 103% | 155% | 1.33 |

### What diversifies LHX?

Correlation measures how closely two investments move together, on a scale from 1 (in lockstep) through 0 (unrelated) to -1 (in opposite directions).

- Moving a fifth of the money in LHX into LVHI would have cut the portfolio's volatility by 17% over the past 5 years and raised its annual return (+3.5% for LHX alone, +6.5% for the mix).
- Among large ETFs, LVHI, DXJ and EMLP have moved largely independently of LHX over the past 5 years, with correlations of 0.47 or lower, and each still earned a positive 5-year return.
- CAH made money in five of the eight calendar years in which LHX lost money.

| Investment | Correlation with LHX | 5Y return | Volatility | Sharpe | Rose in LHX's 8 down years |
| --- | --- | --- | --- | --- | --- |
| LVHI: Franklin International Low Volatility High Dividend Index ETF | 0.34 | +119% | 11.1% | 1.48 | 1 of 8 |
| DXJ: WisdomTree Japan Hedged Equity Fund | 0.27 | +225% | 19.1% | 1.34 | 2 of 8 |
| EMLP: First Trust North American Energy Infrastructure Fund | 0.47 | +101% | 14.5% | 1.04 | 1 of 8 |
| HDV: iShares Core High Dividend ETF | 0.48 | +83.3% | 13.0% | 1.00 | 1 of 8 |
| [SMH](https://easycompare.io/research/smh): VanEck Semiconductor ETF | 0.09 | +323% | 36.9% | 0.97 | 3 of 8 |
| DBEF: Xtrackers MSCI EAFE Hedged Equity ETF | 0.32 | +85.0% | 13.8% | 0.96 | 1 of 8 |
| [GLD](https://easycompare.io/research/gld): SPDR Gold Shares | 0.34 | +126% | 18.9% | 0.96 | 4 of 8 |
| SPMO: Invesco S&P 500 Momentum ETF | 0.29 | +136% | 20.8% | 0.93 | 1 of 8 |

## Common questions

### What was LHX's worst drawdown?

LHX's deepest decline since it began trading in 1986 was 62.8%, from October 1989 to October 1990. It took 25 months from the low to climb back to its old high.

### What were LHX's best and worst years?

Over 29 full calendar years, LHX's best year was 2004, when it returned 64.1%. Its worst was 2008, with a return of -38.4%.

### Is there a better investment than LHX?

Among LHX's popular alternatives, GD earned more than LHX with less volatility over the past 5 years: 12.9% a year at 20.8% volatility, against 2.5% a year at 24.9%. Looking beyond its popular alternatives, CTAS (business services) and ADP (business services) earned more than LHX with less volatility over the past 5 years. CTAS returned 16.5% a year at 23.1% volatility, against 2.5% a year at 24.9%.

### Is LHX more volatile than the S&P 500?

Yes. LHX's volatility over the past 5 years was 24.9%, 1.5 times the S&P 500's 17.1%. Volatility measures how widely returns swing around their average: in roughly two years out of three, LHX's return lands within 24.9% of its average, either way. The higher it is, the rougher the ride and the harder it is to hold through a slump.

### What is LHX's Sharpe ratio?

LHX's Sharpe ratio over the past 5 years was 0.22, against 0.79 for the S&P 500, so LHX earned less for each unit of risk than an index fund did. The Sharpe ratio is the return earned above cash for each unit of volatility: two investments with the same return are not equal if one got there with far bigger swings.

### How correlated is LHX with the S&P 500?

Over the past 5 years, LHX's monthly returns had a correlation of 0.32 with the S&P 500. Correlation runs from 1 (moving in lockstep) through 0 (unrelated) to −1 (moving in opposite directions). They are only loosely linked, which makes it a real diversifier next to an index fund. In the table, the correlation column measures each option against LHX instead: the lower it is, the more that option would diversify a LHX holding.

### What are the best alternatives to LHX?

Of the 25 popular alternatives we compared, ten outperformed LHX in at least 3 of 5 short-term and 2 of 3 long-term timeframes, with dividends reinvested: TDG, ATI and HEI.

### Did LHX outperform the S&P 500?

LHX finished ahead of the S&P 500 (SPY) in 18 of 29 full calendar years. In 2025, it returned +42.3%, against +17.7% for the index.

### How did LHX do in stock market crashes?

LHX fell less than the S&P 500 (SPY) in four of the ten major crashes it has traded through, and further in five. The clearest case was the 2015 China and oil sell-off, when LHX fell 19.9% and the S&P 500 fell 12.8%.

### What diversifies LHX?

These had a low correlation with LHX over the past 5 years and still earned a positive 5-year return: among large ETFs, LVHI (correlation 0.34), DXJ (correlation 0.27) and EMLP (correlation 0.47); among large stocks, CAH (correlation 0.20), CLS (correlation 0.13) and FIX (correlation 0.38). A correlation near zero means the two have moved largely independently.

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## Explore further

- Full page with charts: https://easycompare.io/research/lhx
- All research pages: https://easycompare.io/llms.txt
- Compare the entire market against LHX live: https://betterthanspy.com/?b=LHX&utm_source=easycompare&utm_medium=research