FXO vs. IAT

Last updated Jun 24, 2026

FXO (First Trust Financials AlphaDEX Fund) and IAT (iShares U.S. Regional Banks ETF) are both Financials Equities funds - FXO tracks the StrataQuant Financials Index while IAT tracks the Dow Jones U.S. Select Regional Banks Index. Both are passively managed. Over the past 10 years, FXO returned 13.32%/yr vs 9.74%/yr for IAT. Their correlation of 0.86 suggests significant overlap in exposure. FXO charges 0.62%/yr vs 0.42%/yr for IAT.

Performance

FXO vs. IAT - 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. Regional Banks ETF (IAT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FXO achieves a 3.78% return, which is significantly lower than IAT's 11.98% return. Over the past 10 years, FXO has outperformed IAT with an annualized return of 13.32%, while IAT has yielded a comparatively lower 9.74% annualized return.

FXO

• 1D: 1.06%
• 1M: 4.51%
• YTD: 3.78%
• 6M: 1.91%
• 1Y: 16.03%
• 3Y*: 22.20%
• 5Y*: 9.91%
• 10Y*: 13.32%

IAT

• 1D: 1.65%
• 1M: 7.24%
• YTD: 11.98%
• 6M: 9.77%
• 1Y: 31.31%
• 3Y*: 27.52%
• 5Y*: 4.34%
• 10Y*: 9.74%

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

FXO vs. IAT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FXO First Trust Financials AlphaDEX Fund	3.78%	13.59%	27.72%	9.28%	-9.24%	37.76%	5.95%	26.31%	-11.72%	17.88%
IAT iShares U.S. Regional Banks ETF	11.98%	13.05%	24.36%	-8.53%	-20.61%	38.89%	-7.60%	31.38%	-17.45%	10.42%

Correlation

The correlation between FXO and IAT is 0.87, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.87
Correlation (3Y) Calculated over the trailing 3-year period	0.90
Correlation (5Y) Calculated over the trailing 5-year period	0.92
Correlation (10Y) Calculated over the trailing 10-year period	0.91
Correlation (All Time) Calculated using the full available price history since May 10, 2007	0.86

The correlation between FXO and IAT has been stable across timeframes, ranging from 0.86 to 0.92 - a consistent structural relationship.

FXO vs. IAT - Sectors Allocation Comparison

Sectors	FXO	IAT
Financial Services	94.5%	100.0%
Real Estate	5.0%	-
Technology	0.6%	-
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	-
Industrials	-	-
Utilities	-	-

Return for Risk

FXO vs. IAT — Risk / Return Rank

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

FXO

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

IAT

IAT Risk / Return Rank: 39
IAT Sharpe Ratio Rank: 43
IAT Sortino Ratio Rank: 41
IAT Omega Ratio Rank: 42
IAT Calmar Ratio Rank: 38
IAT Martin Ratio Rank: 33

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. IAT - 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. 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.

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.

	FXO	IAT	Difference
Sharpe ratio: Return per unit of total volatility	1.03	1.43	-0.40
Sortino ratio: Return per unit of downside risk	1.47	1.97	-0.50
Omega ratio: Gain probability vs. loss probability	1.18	1.26	-0.08
Calmar ratio: Return relative to maximum drawdown	1.37	1.80	-0.42
Martin ratio: Return relative to average drawdown	4.09	4.57	-0.48

FXO vs. IAT - Sharpe Ratio Comparison

The current FXO Sharpe Ratio is 1.03, which is comparable to the IAT Sharpe Ratio of 1.43. The chart below compares the historical Sharpe Ratios of FXO 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.

Drawdowns

FXO vs. IAT - Drawdown Comparison

The maximum FXO drawdown since its inception was -71.30%, smaller than the maximum IAT drawdown of -77.22%. Use the drawdown chart below to compare losses from any high point for FXO and IAT.

Drawdown Indicators

	FXO	IAT	Difference
Max Drawdown Largest peak-to-trough decline	-71.30%	-77.22%	+5.92%
Max Drawdown (1Y) Largest decline over 1 year	-11.72%	-17.49%	+5.77%
Max Drawdown (3Y) Largest decline over 3 years	-21.35%	-29.29%	+7.94%
Max Drawdown (5Y) Largest decline over 5 years	-28.80%	-55.55%	+26.75%
Max Drawdown (10Y) Largest decline over 10 years	-48.55%	-55.55%	+7.00%
Current Drawdown Current decline from peak	0.00%	-1.69%	+1.69%
Average Drawdown Average peak-to-trough decline	-13.08%	-26.91%	+13.83%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.93%	6.87%	-2.94%

Volatility

FXO vs. IAT - Volatility Comparison

The current volatility for First Trust Financials AlphaDEX Fund (FXO) is 4.02%, while iShares U.S. Regional Banks ETF (IAT) has a volatility of 6.82%. This indicates that FXO 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

	FXO	IAT	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.02%	6.82%	-2.80%
Volatility (6M) Calculated over the trailing 6-month period	11.03%	16.15%	-5.12%
Volatility (1Y) Calculated over the trailing 1-year period	15.66%	22.02%	-6.36%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.86%	28.96%	-7.10%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.09%	30.73%	-6.64%

FXO vs. IAT - Expense Ratio Comparison

FXO has a 0.62% expense ratio, which is higher than IAT's 0.42% expense ratio.

Dividends

FXO vs. IAT - Dividend Comparison

FXO's dividend yield for the trailing twelve months is around 2.08%, less than IAT's 2.65% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FXO First Trust Financials AlphaDEX Fund	2.08%	1.78%	1.97%	2.98%	2.49%	1.91%	2.60%	1.72%	2.60%	1.62%	1.35%	1.51%
IAT iShares U.S. Regional Banks ETF	2.65%	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 FXO and IAT in my portfolio?

FXO and IAT have a correlation of 0.87, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FXO or IAT?

IAT has higher volatility (6.82%) compared to FXO (4.02%). In terms of maximum drawdown, FXO dropped -71.30% vs IAT's -77.22%.

Which ETF is better, FXO or IAT?

On 10-year performance, FXO leads with 13.32% vs 9.74% for IAT. On fees, IAT is cheaper at 0.42% per year. On volatility, FXO has been the lower-risk option at 4.02%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FXO or IAT?

Over the 10-year period, FXO has performed better with a 13.32% return vs 9.74%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FXO or IAT?

IAT is cheaper with a 0.42% expense ratio, compared with 0.62% for FXO.

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

IAT has the higher dividend yield at 2.65%, compared with 2.08% for FXO.

What is the main difference between FXO and IAT?

FXO tracks StrataQuant Financials 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: 0.62% for FXO and 0.42% for IAT.

Which has better risk-adjusted returns?

IAT currently has the higher Sharpe Ratio (1.43 vs 1.03), 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.