CARZ vs. IAK

Last updated Aug 4, 2026

CARZ (First Trust NASDAQ Global Auto Index Fund) and IAK (iShares U.S. Insurance ETF) are both exchange-traded funds - CARZ is a Consumer Discretionary Equities fund tracking the NASDAQ OMX Global Automobile (TR), while IAK is a Financials Equities fund tracking the Dow Jones U.S. Select Insurance Index. Both are passively managed. Over the past 10 years, CARZ returned 14.17%/yr vs 13.18%/yr for IAK. Their 0.43 correlation means their historical movements had little consistent relationship. CARZ charges 0.70%/yr vs 0.38%/yr for IAK.

Performance

CARZ vs. IAK - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust NASDAQ Global Auto Index Fund (CARZ) and iShares U.S. Insurance ETF (IAK). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, CARZ achieves a 32.79% return, which is significantly higher than IAK's 10.11% return. Over the past 10 years, CARZ has outperformed IAK with an annualized return of 14.17%, while IAK has yielded a comparatively lower 13.18% annualized return.

CARZ

• 1D: 1.28%
• 1M: -5.98%
• 6M: 21.21%
• YTD: 32.79%
• 1Y: 68.69%
• 3Y*: 24.16%
• 5Y*: 12.76%
• 10Y*: 14.17%
• ALL TIME*: 10.24%

IAK

• 1D: 0.03%
• 1M: -0.03%
• 6M: 12.56%
• YTD: 10.11%
• 1Y: 19.67%
• 3Y*: 19.67%
• 5Y*: 15.99%
• 10Y*: 13.18%
• ALL TIME*: 7.39%

*Multi-year figures are annualized to reflect compound growth (CAGR)

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
CARZ First Trust NASDAQ Global Auto Index Fund	$456.71K	$511.80K	$495.78K
IAK iShares U.S. Insurance ETF	$15.27M	$20.59M	$12.29M

CARZ vs. IAK - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
CARZ First Trust NASDAQ Global Auto Index Fund	32.79%	37.18%	3.26%	42.47%	-31.25%	18.09%	54.66%	11.39%	-23.91%	25.47%
IAK iShares U.S. Insurance ETF	10.11%	9.50%	28.25%	11.28%	11.33%	26.84%	-2.86%	25.94%	-11.48%	14.18%

Correlation

The correlation between CARZ and IAK is -0.24, meaning they have often moved in opposite directions in the past. This relationship can weaken or reverse as market conditions change.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	-0.24
Correlation (3Y) Balances recent behavior with more history.	0.00
Correlation (5Y) Shows whether the relationship held over a longer period.	0.22
Correlation (10Y) Provides a long-term view across more market conditions.	0.35
Correlation (All Time) Calculated using the full available price history since May 10, 2011	0.43

The correlation between CARZ and IAK shifts across timeframes, from -0.24 (1 year) to 0.43 (all time), reflecting how their relationship changes across market environments.

CARZ vs. IAK - Sectors Allocation Comparison

Sectors	CARZ	IAK
Technology	69.1%	-
Consumer Cyclical	16.3%	-
Industrials	6.4%	-
Basic Materials	4.2%	-
Communication Services	4.1%	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	99.3%
Healthcare	-	0.7%
Real Estate	-	-
Utilities	-	-

Return for Risk

CARZ vs. IAK — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

CARZ

CARZ Risk / Return Rank: 83
CARZ Sharpe Ratio Rank: 87
CARZ Sortino Ratio Rank: 79
CARZ Omega Ratio Rank: 82
CARZ Calmar Ratio Rank: 83
CARZ Martin Ratio Rank: 82

IAK

IAK Risk / Return Rank: 54
IAK Sharpe Ratio Rank: 49
IAK Sortino Ratio Rank: 49
IAK Omega Ratio Rank: 47
IAK Calmar Ratio Rank: 72
IAK Martin Ratio Rank: 52

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

CARZ vs. IAK - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust NASDAQ Global Auto Index Fund (CARZ) and iShares U.S. Insurance ETF (IAK). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	CARZ	IAK	Difference
Sharpe ratio: Return per unit of total volatility	2.17	1.24	+0.94
Sortino ratio: Return per unit of downside risk	2.69	1.81	+0.88
Omega ratio: Gain probability vs. loss probability	1.36	1.22	+0.14
Calmar ratio: Return relative to maximum drawdown	3.22	2.59	+0.63
Martin ratio: Return relative to average drawdown	11.66	6.29	+5.36

CARZ vs. IAK - Sharpe Ratio Comparison

The current CARZ Sharpe Ratio is 2.17, which is higher than the IAK Sharpe Ratio of 1.24. The chart below compares the historical Sharpe Ratios of CARZ and IAK, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

CARZ vs. IAK - Drawdown Comparison

The maximum CARZ drawdown since its inception was -51.20%, smaller than the maximum IAK drawdown of -77.38%. Use the drawdown chart below to compare losses from any high point for CARZ and IAK.

Drawdown Indicators

	CARZ	IAK	Difference
Max Drawdown Largest peak-to-trough decline	-51.20%	-77.38%	+26.18%
Max Drawdown (1Y) Largest decline over 1 year	-21.44%	-7.62%	-13.82%
Max Drawdown (3Y) Largest decline over 3 years	-27.84%	-11.58%	-16.26%
Max Drawdown (5Y) Largest decline over 5 years	-40.30%	-14.76%	-25.54%
Max Drawdown (10Y) Largest decline over 10 years	-51.20%	-44.95%	-6.25%
Current Drawdown Current decline from peak	-16.01%	-3.20%	-12.81%
Average Drawdown Average peak-to-trough decline	-12.87%	-16.01%	+3.14%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.91%	3.13%	+2.78%

Volatility

CARZ vs. IAK - Volatility Comparison

First Trust NASDAQ Global Auto Index Fund (CARZ) has a higher volatility of 11.77% compared to iShares U.S. Insurance ETF (IAK) at 6.56%. This indicates that CARZ's price experiences larger fluctuations and is considered to be riskier than IAK based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	CARZ	IAK	Difference
Volatility (1M) Calculated over the trailing 1-month period	11.77%	6.56%	+5.21%
Volatility (6M) Calculated over the trailing 6-month period	27.69%	12.42%	+15.27%
Volatility (1Y) Calculated over the trailing 1-year period	31.82%	15.99%	+15.83%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	29.28%	18.13%	+11.15%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	26.77%	20.92%	+5.85%

CARZ vs. IAK - Expense Ratio Comparison

CARZ has a 0.70% expense ratio, which is higher than IAK's 0.38% expense ratio.

Dividends

CARZ vs. IAK - Dividend Comparison

CARZ's dividend yield for the trailing twelve months is around 1.32%, less than IAK's 2.42% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
CARZ First Trust NASDAQ Global Auto Index Fund	1.32%	2.13%	1.17%	1.40%	1.59%	2.25%	0.63%	3.23%	2.85%	2.11%	2.47%	1.64%
IAK iShares U.S. Insurance ETF	2.42%	1.69%	1.49%	1.44%	1.69%	2.26%	2.07%	1.84%	2.33%	1.62%	1.68%	1.62%

Frequently Asked Questions

Can I hold both CARZ and IAK in my portfolio?

CARZ and IAK have a correlation of -0.24, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, CARZ or IAK?

CARZ has higher volatility (11.77%) compared to IAK (6.56%). In terms of maximum drawdown, CARZ dropped -51.20% vs IAK's -77.38%.

Which ETF is better, CARZ or IAK?

On 10-year performance, CARZ leads with 14.17% vs 13.18% for IAK. On fees, IAK is cheaper at 0.38% per year. On volatility, IAK has been the lower-risk option at 6.56%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, CARZ or IAK?

Over the 10-year period, CARZ has performed better with a 14.17% return vs 13.18%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, CARZ or IAK?

IAK is cheaper with a 0.38% expense ratio, compared with 0.70% for CARZ.

Which ETF pays a higher dividend yield, CARZ or IAK?

IAK has the higher dividend yield at 2.42%, compared with 1.32% for CARZ.

What is the main difference between CARZ and IAK?

CARZ is categorized as Consumer Discretionary Equities, while IAK is Financials Equities. CARZ tracks NASDAQ OMX Global Automobile (TR), while IAK tracks Dow Jones U.S. Select Insurance Index. They also come from different issuers: First Trust and iShares. Their fees differ too: 0.70% for CARZ and 0.38% for IAK.

Which has better risk-adjusted returns?

CARZ currently has the higher Sharpe Ratio (2.17 vs 1.24), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.