FXO vs. IAI

Last updated Apr 2, 2026

Compare and contrast key facts about First Trust Financials AlphaDEX Fund (FXO) and iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI).

FXO and IAI are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. FXO is a passively managed fund by First Trust that tracks the performance of the StrataQuant Financials Index. It was launched on May 8, 2007. IAI is a passively managed fund by iShares that tracks the performance of the DJ US Select / Investment Services. It was launched on May 1, 2006. Both FXO and IAI are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.

Performance

FXO vs. IAI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Financials AlphaDEX Fund (FXO) and iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI). The values are adjusted to include any dividend payments, if applicable.

FXO vs. IAI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FXO First Trust Financials AlphaDEX Fund	-5.96%	13.59%	27.72%	9.28%	-9.24%	37.76%	5.95%	26.31%	-11.72%	17.88%
IAI iShares U.S. Broker-Dealers & Securities Exchanges ETF	-7.71%	25.80%	34.37%	15.27%	-10.87%	40.48%	18.61%	24.26%	-9.47%	28.86%

Returns By Period

In the year-to-date period, FXO achieves a -5.96% return, which is significantly higher than IAI's -7.71% return. Over the past 10 years, FXO has underperformed IAI with an annualized return of 12.07%, while IAI has yielded a comparatively higher 17.72% annualized return.

FXO

• 1D: 0.16%
• 1M: -4.73%
• YTD: -5.96%
• 6M: -2.78%
• 1Y: 8.38%
• 3Y*: 17.60%
• 5Y*: 8.63%
• 10Y*: 12.07%

IAI

• 1D: 0.40%
• 1M: -3.75%
• YTD: -7.71%
• 6M: -4.59%
• 1Y: 18.72%
• 3Y*: 23.36%
• 5Y*: 13.79%
• 10Y*: 17.72%

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

FXO vs. IAI - Expense Ratio Comparison

FXO has a 0.62% expense ratio, which is higher than IAI's 0.41% expense ratio.

FXO

First Trust Financials AlphaDEX Fund

IAI

iShares U.S. Broker-Dealers & Securities Exchanges ETF

Return for Risk

FXO vs. IAI — Risk / Return Rank

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

FXO

FXO Risk / Return Rank: 23
FXO Sharpe Ratio Rank: 22
FXO Sortino Ratio Rank: 22
FXO Omega Ratio Rank: 23
FXO Calmar Ratio Rank: 24
FXO Martin Ratio Rank: 25

IAI

IAI Risk / Return Rank: 39
IAI Sharpe Ratio Rank: 39
IAI Sortino Ratio Rank: 40
IAI Omega Ratio Rank: 39
IAI Calmar Ratio Rank: 42
IAI Martin Ratio Rank: 37

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.

FXO vs. IAI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Financials AlphaDEX Fund (FXO) and iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI). 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.

	FXO	IAI	Difference
Sharpe ratio Return per unit of total volatility	0.40	0.78	-0.38
Sortino ratio Return per unit of downside risk	0.67	1.18	-0.51
Omega ratio Gain probability vs. loss probability	1.10	1.16	-0.07
Calmar ratio Return relative to maximum drawdown	0.59	1.15	-0.57
Martin ratio Return relative to average drawdown	1.98	3.49	-1.52
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FXO vs. IAI - Sharpe Ratio Comparison

The current FXO Sharpe Ratio is 0.40, which is lower than the IAI Sharpe Ratio of 0.78. The chart below compares the historical Sharpe Ratios of FXO and IAI, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.

Sharpe Ratios by Period

	FXO	IAI	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.40	0.78	-0.38
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.39	0.65	-0.25
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.50	0.78	-0.27
Sharpe Ratio (All Time) Calculated using the full available price history	0.30	0.27	+0.03

Correlation

The correlation between FXO and IAI is 0.83, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.

Dividends

FXO vs. IAI - Dividend Comparison

FXO's dividend yield for the trailing twelve months is around 2.30%, more than IAI's 1.17% yield.

	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FXO First Trust Financials AlphaDEX Fund	2.30%	1.78%	1.97%	2.98%	2.49%	1.91%	2.60%	1.72%	2.60%	1.62%	1.35%	1.51%
IAI iShares U.S. Broker-Dealers & Securities Exchanges ETF	1.17%	0.95%	1.05%	1.80%	2.14%	1.31%	1.55%	1.52%	1.58%	1.37%	1.49%	1.31%

Drawdowns

FXO vs. IAI - Drawdown Comparison

The maximum FXO drawdown since its inception was -71.30%, smaller than the maximum IAI drawdown of -75.46%. Use the drawdown chart below to compare losses from any high point for FXO and IAI.

Drawdown Indicators

	FXO	IAI	Difference
Max Drawdown Largest peak-to-trough decline	-71.30%	-75.46%	+4.16%
Max Drawdown (1Y) Largest decline over 1 year	-14.67%	-16.52%	+1.85%
Max Drawdown (5Y) Largest decline over 5 years	-28.80%	-28.84%	+0.04%
Max Drawdown (10Y) Largest decline over 10 years	-48.55%	-40.38%	-8.17%
Current Drawdown Current decline from peak	-8.77%	-13.06%	+4.29%
Average Drawdown Average peak-to-trough decline	-13.19%	-22.80%	+9.61%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.35%	5.45%	-1.10%

Volatility

FXO vs. IAI - Volatility Comparison

The current volatility for First Trust Financials AlphaDEX Fund (FXO) is 4.93%, while iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI) has a volatility of 6.14%. This indicates that FXO experiences smaller price fluctuations and is considered to be less risky than IAI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FXO	IAI	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.93%	6.14%	-1.21%
Volatility (6M) Calculated over the trailing 6-month period	12.11%	15.26%	-3.15%
Volatility (1Y) Calculated over the trailing 1-year period	21.31%	24.14%	-2.83%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.03%	21.38%	+0.65%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.12%	22.91%	+1.21%