FTXO vs. IAT

Last updated Jun 4, 2026

FTXO (First Trust Nasdaq Bank ETF) and IAT (iShares U.S. Regional Banks ETF) are both Financials Equities funds - FTXO tracks the NASDAQ US Banks Index while IAT tracks the Dow Jones U.S. Select Regional Banks Index. Both are passively managed. Over the past 5 years, FTXO returned 5.35%/yr vs 1.35%/yr for IAT. With a 0.98 correlation, they move nearly in lockstep. FTXO charges 0.60%/yr vs 0.42%/yr for IAT.

Performance

FTXO vs. IAT - 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. Regional Banks ETF (IAT). 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 lower than IAT's 2.80% return.

FTXO

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

IAT

• 1D: -1.71%
• 1M: -1.74%
• YTD: 2.80%
• 6M: 7.09%
• 1Y: 22.99%
• 3Y*: 22.20%
• 5Y*: 1.35%
• 10Y*: 7.95%

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

FTXO vs. IAT - 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%
IAT iShares U.S. Regional Banks ETF	2.80%	13.05%	24.36%	-8.53%	-20.61%	38.89%	-7.60%	31.38%	-17.45%	10.42%

Correlation

The correlation between FTXO and IAT is 0.96 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.96
Correlation (3Y) Calculated over the trailing 3-year period	0.97
Correlation (5Y) Calculated over the trailing 5-year period	0.98
Correlation (All Time) Calculated using the full available price history since Oct 10, 2016	0.98

The correlation between FTXO and IAT has been stable across timeframes, ranging from 0.96 to 0.98 - a consistent structural relationship.

FTXO vs. IAT - Sectors Allocation Comparison

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

Return for Risk

FTXO vs. IAT — 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

IAT

IAT Risk / Return Rank: 27
IAT Sharpe Ratio Rank: 29
IAT Sortino Ratio Rank: 28
IAT Omega Ratio Rank: 29
IAT Calmar Ratio Rank: 27
IAT Martin Ratio Rank: 25

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. IAT - 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. Regional Banks ETF (IAT). 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	IAT	Difference
Sharpe ratio: Return per unit of total volatility	1.13	1.06	+0.07
Sortino ratio: Return per unit of downside risk	1.62	1.52	+0.09
Omega ratio: Gain probability vs. loss probability	1.21	1.20	+0.01
Calmar ratio: Return relative to maximum drawdown	1.41	1.32	+0.09
Martin ratio: Return relative to average drawdown	3.90	3.38	+0.52
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. IAT - Sharpe Ratio Comparison

The current FTXO Sharpe Ratio is 1.13, which is comparable to the IAT Sharpe Ratio of 1.06. The chart below compares the historical Sharpe Ratios of FTXO and IAT, 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	IAT	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.13	1.06	+0.07
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.20	0.05	+0.15
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.26	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.31	0.10	+0.21

Drawdowns

FTXO vs. IAT - Drawdown Comparison

The maximum FTXO drawdown since its inception was -55.26%, smaller than the maximum IAT drawdown of -77.22%. Use the drawdown chart below to compare losses from any high point for FTXO and IAT.

Drawdown Indicators

	FTXO	IAT	Difference
Max Drawdown Largest peak-to-trough decline	-55.26%	-77.22%	+21.96%
Max Drawdown (1Y) Largest decline over 1 year	-16.69%	-17.49%	+0.80%
Max Drawdown (3Y) Largest decline over 3 years	-25.84%	-29.29%	+3.45%
Max Drawdown (5Y) Largest decline over 5 years	-46.55%	-55.55%	+9.00%
Max Drawdown (10Y) Largest decline over 10 years	—	-55.55%	—
Current Drawdown Current decline from peak	-8.10%	-9.75%	+1.65%
Average Drawdown Average peak-to-trough decline	-15.88%	-26.97%	+11.09%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.01%	6.81%	-0.80%

Volatility

FTXO vs. IAT - Volatility Comparison

The current volatility for First Trust Nasdaq Bank ETF (FTXO) is 5.69%, while iShares U.S. Regional Banks ETF (IAT) has a volatility of 6.12%. This indicates that FTXO experiences smaller price fluctuations and is considered to be less risky than IAT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FTXO	IAT	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.69%	6.12%	-0.43%
Volatility (6M) Calculated over the trailing 6-month period	15.46%	15.74%	-0.28%
Volatility (1Y) Calculated over the trailing 1-year period	20.80%	21.86%	-1.06%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	27.01%	29.03%	-2.02%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	29.98%	30.78%	-0.80%

FTXO vs. IAT - Expense Ratio Comparison

FTXO has a 0.60% expense ratio, which is higher than IAT's 0.42% expense ratio.

Dividends

FTXO vs. IAT - Dividend Comparison

FTXO's dividend yield for the trailing twelve months is around 1.78%, less than IAT's 2.88% 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%
IAT iShares U.S. Regional Banks ETF	2.88%	2.94%	2.95%	3.56%	3.12%	1.88%	2.87%	2.49%	2.48%	1.55%	1.52%	1.78%

Frequently Asked Questions

Can I hold both FTXO and IAT in my portfolio?

With a correlation of 0.96, FTXO and IAT move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, FTXO or IAT?

IAT has higher volatility (6.12%) compared to FTXO (5.69%). In terms of maximum drawdown, FTXO dropped -55.26% vs IAT's -77.22%.

Which ETF is better, FTXO or IAT?

On 5-year performance, FTXO leads with 5.35% vs 1.35% for IAT. On fees, IAT is cheaper at 0.42% per year. On volatility, FTXO has been the lower-risk option at 5.69%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FTXO or IAT?

Over the 5-year period, FTXO has performed better with a 5.35% return vs 1.35%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FTXO or IAT?

IAT is cheaper with a 0.42% expense ratio, compared with 0.60% for FTXO.

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

IAT has the higher dividend yield at 2.88%, compared with 1.78% for FTXO.

What is the main difference between FTXO and IAT?

FTXO tracks NASDAQ US Banks Index, while IAT tracks Dow Jones U.S. Select Regional Banks Index. They also come from different issuers: First Trust and iShares. Their fees differ too: 0.60% for FTXO and 0.42% for IAT.

Which has better risk-adjusted returns?

FTXO currently has the higher Sharpe Ratio (1.13 vs 1.06), 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.