FTXO vs. IAK

Last updated Jun 4, 2026

FTXO (First Trust Nasdaq Bank ETF) and IAK (iShares U.S. Insurance ETF) are both Financials Equities funds - FTXO tracks the NASDAQ US Banks Index while IAK tracks the Dow Jones U.S. Select Insurance Index. Both are passively managed. Over the past 5 years, FTXO returned 5.35%/yr vs 11.50%/yr for IAK. A 0.71 correlation means they provide meaningful diversification when combined. FTXO charges 0.60%/yr vs 0.43%/yr for IAK.

Performance

FTXO vs. IAK - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Nasdaq Bank ETF (FTXO) 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, FTXO achieves a 0.81% return, which is significantly higher than IAK's -4.56% return.

FTXO

• 1D: -1.34%
• 1M: -0.87%
• YTD: 0.81%
• 6M: 4.64%
• 1Y: 23.41%
• 3Y*: 24.18%
• 5Y*: 5.35%
• 10Y*: —

IAK

• 1D: -0.88%
• 1M: -2.27%
• YTD: -4.56%
• 6M: -1.81%
• 1Y: -4.16%
• 3Y*: 16.73%
• 5Y*: 11.50%
• 10Y*: 11.66%

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

FTXO vs. IAK - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FTXO First Trust Nasdaq Bank ETF	0.81%	21.32%	29.05%	0.05%	-17.93%	40.53%	-12.53%	30.11%	-21.79%	14.25%
IAK iShares U.S. Insurance ETF	-4.56%	9.50%	28.25%	11.28%	11.33%	26.84%	-2.86%	25.94%	-11.48%	14.18%

Correlation

The correlation between FTXO and IAK is 0.47, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.47
Correlation (3Y) Calculated over the trailing 3-year period	0.52
Correlation (5Y) Calculated over the trailing 5-year period	0.66
Correlation (All Time) Calculated using the full available price history since Oct 10, 2016	0.71

Over the past year, the correlation between FTXO and IAK has dropped to 0.47 - well below their long-term average of 0.71, suggesting their price drivers have been diverging.

FTXO vs. IAK - Sectors Allocation Comparison

Sectors	FTXO	IAK
Financial Services	100.0%	99.5%
Technology	0.4%	-
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	0.5%
Industrials	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

FTXO vs. IAK — Risk / Return Rank

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

FTXO

FTXO Risk / Return Rank: 30
FTXO Sharpe Ratio Rank: 31
FTXO Sortino Ratio Rank: 30
FTXO Omega Ratio Rank: 30
FTXO Calmar Ratio Rank: 29
FTXO Martin Ratio Rank: 28

IAK

IAK Risk / Return Rank: 5
IAK Sharpe Ratio Rank: 6
IAK Sortino Ratio Rank: 6
IAK Omega Ratio Rank: 5
IAK Calmar Ratio Rank: 4
IAK Martin Ratio Rank: 3

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.

FTXO vs. IAK - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Nasdaq Bank ETF (FTXO) 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.

	FTXO	IAK	Difference
Sharpe ratio: Return per unit of total volatility	1.13	-0.28	+1.42
Sortino ratio: Return per unit of downside risk	1.62	-0.29	+1.91
Omega ratio: Gain probability vs. loss probability	1.21	0.97	+0.24
Calmar ratio: Return relative to maximum drawdown	1.41	-0.55	+1.96
Martin ratio: Return relative to average drawdown	3.90	-1.14	+5.05
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FTXO vs. IAK - Sharpe Ratio Comparison

The current FTXO Sharpe Ratio is 1.13, which is higher than the IAK Sharpe Ratio of -0.28. The chart below compares the historical Sharpe Ratios of FTXO 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.

Sharpe Ratios by Period

	FTXO	IAK	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.13	-0.28	+1.42
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.20	0.64	-0.44
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.56	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.31	0.26	+0.05

Drawdowns

FTXO vs. IAK - Drawdown Comparison

The maximum FTXO drawdown since its inception was -55.26%, smaller than the maximum IAK drawdown of -77.38%. Use the drawdown chart below to compare losses from any high point for FTXO and IAK.

Drawdown Indicators

	FTXO	IAK	Difference
Max Drawdown Largest peak-to-trough decline	-55.26%	-77.38%	+22.12%
Max Drawdown (1Y) Largest decline over 1 year	-16.69%	-7.62%	-9.07%
Max Drawdown (3Y) Largest decline over 3 years	-25.84%	-11.58%	-14.26%
Max Drawdown (5Y) Largest decline over 5 years	-46.55%	-14.76%	-31.79%
Max Drawdown (10Y) Largest decline over 10 years	—	-44.95%	—
Current Drawdown Current decline from peak	-8.10%	-5.82%	-2.28%
Average Drawdown Average peak-to-trough decline	-15.88%	-16.13%	+0.25%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.01%	3.96%	+2.05%

Volatility

FTXO vs. IAK - Volatility Comparison

First Trust Nasdaq Bank ETF (FTXO) has a higher volatility of 5.69% compared to iShares U.S. Insurance ETF (IAK) at 3.82%. This indicates that FTXO'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

	FTXO	IAK	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.69%	3.82%	+1.87%
Volatility (6M) Calculated over the trailing 6-month period	15.46%	9.98%	+5.48%
Volatility (1Y) Calculated over the trailing 1-year period	20.80%	14.77%	+6.03%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	27.01%	18.07%	+8.94%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	29.98%	20.89%	+9.09%

FTXO vs. IAK - Expense Ratio Comparison

FTXO has a 0.60% expense ratio, which is higher than IAK's 0.43% expense ratio.

Dividends

FTXO vs. IAK - Dividend Comparison

FTXO's dividend yield for the trailing twelve months is around 1.78%, less than IAK's 2.76% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FTXO First Trust Nasdaq Bank ETF	1.78%	1.92%	2.18%	3.20%	2.94%	1.64%	2.74%	2.53%	3.51%	1.09%	0.16%	0.00%
IAK iShares U.S. Insurance ETF	2.76%	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 FTXO and IAK in my portfolio?

FTXO and IAK have a correlation of 0.47, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FTXO or IAK?

FTXO has higher volatility (5.69%) compared to IAK (3.82%). In terms of maximum drawdown, FTXO dropped -55.26% vs IAK's -77.38%.

Which ETF is better, FTXO or IAK?

On 5-year performance, IAK leads with 11.50% vs 5.35% for FTXO. On fees, IAK is cheaper at 0.43% per year. On volatility, IAK has been the lower-risk option at 3.82%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FTXO or IAK?

Over the 5-year period, IAK has performed better with a 11.50% return vs 5.35%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FTXO or IAK?

IAK is cheaper with a 0.43% expense ratio, compared with 0.60% for FTXO.

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

IAK has the higher dividend yield at 2.76%, compared with 1.78% for FTXO.

What is the main difference between FTXO and IAK?

FTXO tracks NASDAQ US Banks Index, while IAK tracks Dow Jones U.S. Select Insurance Index. They also come from different issuers: First Trust and iShares. Their fees differ too: 0.60% for FTXO and 0.43% for IAK.

Which has better risk-adjusted returns?

FTXO currently has the higher Sharpe Ratio (1.13 vs -0.28), 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.