FXO vs. IYF

Last updated Aug 5, 2026

FXO (First Trust Financials AlphaDEX Fund) and IYF (iShares U.S. Financials ETF) are both Financials Equities funds - FXO tracks the StrataQuant Financials Index while IYF tracks the Russell 1000 Financials 40 Act 15/22.5 Daily Capped Index. Both are passively managed. Over the past 10 years, FXO returned 13.29%/yr vs 13.63%/yr for IYF. Their correlation of 0.90 means they have usually moved in the same direction. FXO charges 0.62%/yr vs 0.38%/yr for IYF.

Performance

FXO vs. IYF - 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. Financials ETF (IYF). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FXO achieves a 12.28% return, which is significantly higher than IYF's 7.17% return. Both investments have delivered pretty close results over the past 10 years, with FXO having a 13.29% annualized return and IYF not far ahead at 13.63%.

FXO

• 1D: 0.71%
• 1M: 4.66%
• 6M: 10.72%
• YTD: 12.28%
• 1Y: 20.77%
• 3Y*: 20.31%
• 5Y*: 11.44%
• 10Y*: 13.29%
• ALL TIME*: 8.63%

IYF

• 1D: 0.85%
• 1M: 3.94%
• 6M: 8.21%
• YTD: 7.17%
• 1Y: 14.98%
• 3Y*: 22.26%
• 5Y*: 12.35%
• 10Y*: 13.63%
• ALL TIME*: 6.21%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
FXO First Trust Financials AlphaDEX Fund	$3.33M	$3.32M	$3.46M
IYF iShares U.S. Financials ETF	$96.50M	$70.30M	$46.30M

FXO vs. IYF - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FXO First Trust Financials AlphaDEX Fund	12.28%	13.59%	27.72%	9.28%	-9.24%	37.76%	5.95%	26.31%	-11.72%	17.88%
IYF iShares U.S. Financials ETF	7.17%	18.25%	31.30%	15.32%	-11.33%	31.60%	-1.00%	31.86%	-9.39%	19.58%

Correlation

The correlation between FXO and IYF is 0.91, meaning they have usually moved in the same direction, including during past declines.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.91
Correlation (3Y) Balances recent behavior with more history.	0.93
Correlation (5Y) Shows whether the relationship held over a longer period.	0.95
Correlation (10Y) Provides a long-term view across more market conditions.	0.94
Correlation (All Time) Calculated using the full available price history since May 10, 2007	0.90

The correlation between FXO and IYF has been stable across timeframes, ranging from 0.90 to 0.95 - a consistent structural relationship.

FXO vs. IYF - Sectors Allocation Comparison

Sectors	FXO	IYF
Financial Services	94.8%	99.0%
Real Estate	4.8%	0.7%
Technology	0.5%	0.3%
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	-
Industrials	-	-
Utilities	-	-

Return for Risk

FXO vs. IYF — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

FXO

FXO Risk / Return Rank: 45
FXO Sharpe Ratio Rank: 48
FXO Sortino Ratio Rank: 46
FXO Omega Ratio Rank: 45
FXO Calmar Ratio Rank: 44
FXO Martin Ratio Rank: 43

IYF

IYF Risk / Return Rank: 33
IYF Sharpe Ratio Rank: 37
IYF Sortino Ratio Rank: 35
IYF Omega Ratio Rank: 35
IYF Calmar Ratio Rank: 30
IYF Martin Ratio Rank: 30

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

FXO vs. IYF - 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. Financials ETF (IYF). 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	IYF	Difference
Sharpe ratio: Return per unit of total volatility	1.35	1.03	+0.32
Sortino ratio: Return per unit of downside risk	1.90	1.47	+0.43
Omega ratio: Gain probability vs. loss probability	1.24	1.19	+0.05
Calmar ratio: Return relative to maximum drawdown	1.78	1.08	+0.70
Martin ratio: Return relative to average drawdown	5.33	2.92	+2.41

FXO vs. IYF - Sharpe Ratio Comparison

The current FXO Sharpe Ratio is 1.35, which is higher than the IYF Sharpe Ratio of 1.03. The chart below compares the historical Sharpe Ratios of FXO and IYF, 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. IYF - Drawdown Comparison

The maximum FXO drawdown since its inception was -71.30%, smaller than the maximum IYF drawdown of -79.09%. Use the drawdown chart below to compare losses from any high point for FXO and IYF.

Drawdown Indicators

	FXO	IYF	Difference
Max Drawdown Largest peak-to-trough decline	-71.30%	-79.09%	+7.79%
Max Drawdown (1Y) Largest decline over 1 year	-11.72%	-13.88%	+2.16%
Max Drawdown (3Y) Largest decline over 3 years	-21.35%	-16.60%	-4.75%
Max Drawdown (5Y) Largest decline over 5 years	-28.80%	-25.06%	-3.74%
Max Drawdown (10Y) Largest decline over 10 years	-48.55%	-42.57%	-5.98%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-13.01%	-17.51%	+4.50%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.91%	5.14%	-1.23%

Volatility

FXO vs. IYF - Volatility Comparison

First Trust Financials AlphaDEX Fund (FXO) has a higher volatility of 4.15% compared to iShares U.S. Financials ETF (IYF) at 3.77%. This indicates that FXO's price experiences larger fluctuations and is considered to be riskier than IYF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FXO	IYF	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.15%	3.77%	+0.38%
Volatility (6M) Calculated over the trailing 6-month period	11.07%	11.09%	-0.02%
Volatility (1Y) Calculated over the trailing 1-year period	15.51%	14.58%	+0.93%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.72%	18.95%	+2.77%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.06%	20.82%	+3.24%

FXO vs. IYF - Expense Ratio Comparison

FXO has a 0.62% expense ratio, which is higher than IYF's 0.38% expense ratio.

Dividends

FXO vs. IYF - Dividend Comparison

FXO's dividend yield for the trailing twelve months is around 1.95%, more than IYF's 1.40% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FXO First Trust Financials AlphaDEX Fund	1.95%	1.78%	1.97%	2.98%	2.49%	1.91%	2.60%	1.72%	2.60%	1.62%	1.35%	1.51%
IYF iShares U.S. Financials ETF	1.40%	1.32%	1.29%	1.67%	1.86%	1.27%	1.72%	1.64%	1.90%	1.46%	1.67%	1.66%

Frequently Asked Questions

Can I hold both FXO and IYF in my portfolio?

With a correlation of 0.91, FXO and IYF 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, FXO or IYF?

FXO has higher volatility (4.15%) compared to IYF (3.77%). In terms of maximum drawdown, FXO dropped -71.30% vs IYF's -79.09%.

Which ETF is better, FXO or IYF?

On 10-year performance, IYF leads with 13.63% vs 13.29% for FXO. On fees, IYF is cheaper at 0.38% per year. On volatility, IYF has been the lower-risk option at 3.77%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FXO or IYF?

Over the 10-year period, IYF has performed better with a 13.63% return vs 13.29%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FXO or IYF?

IYF is cheaper with a 0.38% expense ratio, compared with 0.62% for FXO.

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

FXO has the higher dividend yield at 1.95%, compared with 1.40% for IYF.

What is the main difference between FXO and IYF?

FXO tracks StrataQuant Financials Index, while IYF tracks Russell 1000 Financials 40 Act 15/22.5 Daily Capped Index. They also come from different issuers: First Trust and iShares. Their fees differ too: 0.62% for FXO and 0.38% for IYF.

Which has better risk-adjusted returns?

FXO currently has the higher Sharpe Ratio (1.35 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.