FNCL vs. IAK

Last updated Jun 24, 2026

FNCL (Fidelity MSCI Financials Index ETF) and IAK (iShares U.S. Insurance ETF) are both Financials Equities funds - FNCL tracks the MSCI USA IMI Financials Index while IAK tracks the Dow Jones U.S. Select Insurance Index. Both are passively managed. Over the past 10 years, FNCL returned 13.45%/yr vs 13.20%/yr for IAK. Their correlation of 0.83 suggests significant overlap in exposure. FNCL charges 0.08%/yr vs 0.38%/yr for IAK.

Performance

FNCL vs. IAK - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Fidelity MSCI Financials Index ETF (FNCL) 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, FNCL achieves a -0.31% return, which is significantly lower than IAK's 3.62% return. Both investments have delivered pretty close results over the past 10 years, with FNCL having a 13.45% annualized return and IAK not far behind at 13.20%.

FNCL

• 1D: 0.46%
• 1M: 4.20%
• YTD: -0.31%
• 6M: -1.64%
• 1Y: 8.95%
• 3Y*: 20.96%
• 5Y*: 10.07%
• 10Y*: 13.45%

IAK

• 1D: 2.19%
• 1M: 3.60%
• YTD: 3.62%
• 6M: 2.70%
• 1Y: 6.36%
• 3Y*: 19.69%
• 5Y*: 14.57%
• 10Y*: 13.20%

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

FNCL vs. IAK - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FNCL Fidelity MSCI Financials Index ETF	-0.31%	14.94%	30.44%	14.10%	-12.28%	34.92%	-2.19%	31.59%	-13.44%	19.99%
IAK iShares U.S. Insurance ETF	3.62%	9.50%	28.25%	11.28%	11.33%	26.84%	-2.86%	25.94%	-11.48%	14.18%

Correlation

The correlation between FNCL and IAK is 0.58, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.58
Correlation (3Y) Calculated over the trailing 3-year period	0.67
Correlation (5Y) Calculated over the trailing 5-year period	0.77
Correlation (10Y) Calculated over the trailing 10-year period	0.82
Correlation (All Time) Calculated using the full available price history since Oct 24, 2013	0.83

Over the past year, the correlation between FNCL and IAK has dropped to 0.58 - well below their long-term average of 0.83, suggesting their price drivers have been diverging.

FNCL vs. IAK - Sectors Allocation Comparison

Sectors	FNCL	IAK
Financial Services	96.9%	99.4%
Technology	2.0%	-
Real Estate	0.7%	-
Industrials	0.2%	-
Healthcare	0.1%	0.6%
Communication Services	0.0%	-
Consumer Cyclical	0.0%	-
Basic Materials	-	-
Consumer Defensive	-	-
Energy	-	-
Utilities	-	-

Return for Risk

FNCL vs. IAK — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

FNCL

FNCL Risk / Return Rank: 17
FNCL Sharpe Ratio Rank: 19
FNCL Sortino Ratio Rank: 17
FNCL Omega Ratio Rank: 17
FNCL Calmar Ratio Rank: 16
FNCL Martin Ratio Rank: 16

IAK

IAK Risk / Return Rank: 16
IAK Sharpe Ratio Rank: 15
IAK Sortino Ratio Rank: 14
IAK Omega Ratio Rank: 14
IAK Calmar Ratio Rank: 19
IAK Martin Ratio Rank: 18

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

FNCL vs. IAK - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Fidelity MSCI Financials Index ETF (FNCL) 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.

	FNCL	IAK	Difference
Sharpe ratio: Return per unit of total volatility	0.60	0.42	+0.18
Sortino ratio: Return per unit of downside risk	0.91	0.69	+0.23
Omega ratio: Gain probability vs. loss probability	1.11	1.08	+0.03
Calmar ratio: Return relative to maximum drawdown	0.61	0.84	-0.23
Martin ratio: Return relative to average drawdown	1.58	1.87	-0.29

FNCL vs. IAK - Sharpe Ratio Comparison

The current FNCL Sharpe Ratio is 0.60, which is higher than the IAK Sharpe Ratio of 0.42. The chart below compares the historical Sharpe Ratios of FNCL 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

FNCL vs. IAK - Drawdown Comparison

The maximum FNCL drawdown since its inception was -44.38%, smaller than the maximum IAK drawdown of -77.38%. Use the drawdown chart below to compare losses from any high point for FNCL and IAK.

Drawdown Indicators

	FNCL	IAK	Difference
Max Drawdown Largest peak-to-trough decline	-44.38%	-77.38%	+33.00%
Max Drawdown (1Y) Largest decline over 1 year	-14.78%	-7.62%	-7.16%
Max Drawdown (3Y) Largest decline over 3 years	-17.29%	-11.58%	-5.71%
Max Drawdown (5Y) Largest decline over 5 years	-25.68%	-14.76%	-10.92%
Max Drawdown (10Y) Largest decline over 10 years	-44.38%	-44.95%	+0.57%
Current Drawdown Current decline from peak	-3.35%	0.00%	-3.35%
Average Drawdown Average peak-to-trough decline	-6.90%	-16.09%	+9.19%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.68%	3.41%	+2.27%

Volatility

FNCL vs. IAK - Volatility Comparison

The current volatility for Fidelity MSCI Financials Index ETF (FNCL) is 4.22%, while iShares U.S. Insurance ETF (IAK) has a volatility of 5.62%. This indicates that FNCL experiences smaller price fluctuations and is considered to be less risky than IAK based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FNCL	IAK	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.22%	5.62%	-1.40%
Volatility (6M) Calculated over the trailing 6-month period	11.36%	10.66%	+0.70%
Volatility (1Y) Calculated over the trailing 1-year period	14.94%	15.18%	-0.24%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.21%	18.06%	+1.15%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.30%	20.87%	+1.43%

FNCL vs. IAK - Expense Ratio Comparison

FNCL has a 0.08% expense ratio, which is lower than IAK's 0.38% expense ratio.

Dividends

FNCL vs. IAK - Dividend Comparison

FNCL's dividend yield for the trailing twelve months is around 1.64%, less than IAK's 2.58% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FNCL Fidelity MSCI Financials Index ETF	1.64%	1.45%	1.52%	1.91%	2.29%	1.75%	2.26%	2.17%	2.37%	1.60%	1.81%	2.17%
IAK iShares U.S. Insurance ETF	2.58%	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 FNCL and IAK in my portfolio?

FNCL and IAK have a correlation of 0.58, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FNCL or IAK?

IAK has higher volatility (5.62%) compared to FNCL (4.22%). In terms of maximum drawdown, FNCL dropped -44.38% vs IAK's -77.38%.

Which ETF is better, FNCL or IAK?

On 10-year performance, FNCL leads with 13.45% vs 13.20% for IAK. On fees, FNCL is cheaper at 0.08% per year. On volatility, FNCL has been the lower-risk option at 4.22%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FNCL or IAK?

Over the 10-year period, FNCL has performed better with a 13.45% return vs 13.20%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FNCL or IAK?

FNCL is cheaper with a 0.08% expense ratio, compared with 0.38% for IAK.

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

IAK has the higher dividend yield at 2.58%, compared with 1.64% for FNCL.

What is the main difference between FNCL and IAK?

FNCL tracks MSCI USA IMI Financials Index, while IAK tracks Dow Jones U.S. Select Insurance Index. They also come from different issuers: Fidelity and iShares. Their fees differ too: 0.08% for FNCL and 0.38% for IAK.

Which has better risk-adjusted returns?

FNCL currently has the higher Sharpe Ratio (0.60 vs 0.42), 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.