IAI vs. FAS

Last updated Jun 24, 2026

IAI (iShares U.S. Broker-Dealers & Securities Exchanges ETF) and FAS (Direxion Daily Financial Bull 3X Shares) are both exchange-traded funds - IAI is a Financials Equities fund tracking the Dow Jones U.S. Select Investment Services Index, while FAS is a Leveraged Equities fund tracking the Russell 1000 Financial Services Index (300%). Both are passively managed. Over the past 10 years, IAI returned 19.81%/yr vs 22.50%/yr for FAS. Their correlation of 0.88 suggests significant overlap in exposure. IAI charges 0.38%/yr vs 1.00%/yr for FAS.

Performance

IAI vs. FAS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI) and Direxion Daily Financial Bull 3X Shares (FAS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IAI achieves a 4.12% return, which is significantly higher than FAS's -10.50% return. Over the past 10 years, IAI has underperformed FAS with an annualized return of 19.81%, while FAS has yielded a comparatively higher 22.50% annualized return.

IAI

• 1D: -0.65%
• 1M: 3.38%
• YTD: 4.12%
• 6M: 2.06%
• 1Y: 17.16%
• 3Y*: 29.87%
• 5Y*: 14.88%
• 10Y*: 19.81%

FAS

• 1D: 0.67%
• 1M: 11.10%
• YTD: -10.50%
• 6M: -13.84%
• 1Y: 5.47%
• 3Y*: 41.93%
• 5Y*: 9.82%
• 10Y*: 22.50%

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

IAI vs. FAS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IAI iShares U.S. Broker-Dealers & Securities Exchanges ETF	4.12%	25.80%	34.37%	15.27%	-10.87%	40.48%	18.61%	24.26%	-9.47%	28.86%
FAS Direxion Daily Financial Bull 3X Shares	-10.50%	21.48%	84.47%	14.92%	-43.19%	116.59%	-34.97%	113.04%	-33.84%	67.37%

Correlation

The correlation between IAI and FAS is 0.75, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.75
Correlation (3Y) Calculated over the trailing 3-year period	0.81
Correlation (5Y) Calculated over the trailing 5-year period	0.86
Correlation (10Y) Calculated over the trailing 10-year period	0.87
Correlation (All Time) Calculated using the full available price history since Nov 19, 2008	0.88

The correlation between IAI and FAS shifts across timeframes, from 0.75 (1 year) to 0.88 (all time), reflecting how their relationship changes across market environments.

IAI vs. FAS - Sectors Allocation Comparison

Sectors	IAI	FAS
Financial Services	99.9%	98.0%
Technology	0.1%	1.8%
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	-
Industrials	-	0.2%
Real Estate	-	-
Utilities	-	-

Return for Risk

IAI vs. FAS — Risk / Return Rank

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

IAI

IAI Risk / Return Rank: 24
IAI Sharpe Ratio Rank: 26
IAI Sortino Ratio Rank: 24
IAI Omega Ratio Rank: 24
IAI Calmar Ratio Rank: 23
IAI Martin Ratio Rank: 24

FAS

FAS Risk / Return Rank: 11
FAS Sharpe Ratio Rank: 10
FAS Sortino Ratio Rank: 11
FAS Omega Ratio Rank: 11
FAS Calmar Ratio Rank: 10
FAS Martin Ratio Rank: 10

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.

IAI vs. FAS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI) and Direxion Daily Financial Bull 3X Shares (FAS). 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.

	IAI	FAS	Difference
Sharpe ratio: Return per unit of total volatility	0.89	0.13	+0.77
Sortino ratio: Return per unit of downside risk	1.30	0.47	+0.83
Omega ratio: Gain probability vs. loss probability	1.16	1.06	+0.10
Calmar ratio: Return relative to maximum drawdown	1.04	0.13	+0.91
Martin ratio: Return relative to average drawdown	2.96	0.30	+2.66

IAI vs. FAS - Sharpe Ratio Comparison

The current IAI Sharpe Ratio is 0.89, which is higher than the FAS Sharpe Ratio of 0.13. The chart below compares the historical Sharpe Ratios of IAI and FAS, 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

IAI vs. FAS - Drawdown Comparison

The maximum IAI drawdown since its inception was -75.46%, smaller than the maximum FAS drawdown of -91.61%. Use the drawdown chart below to compare losses from any high point for IAI and FAS.

Drawdown Indicators

	IAI	FAS	Difference
Max Drawdown Largest peak-to-trough decline	-75.46%	-91.61%	+16.15%
Max Drawdown (1Y) Largest decline over 1 year	-16.52%	-40.88%	+24.36%
Max Drawdown (3Y) Largest decline over 3 years	-23.14%	-43.10%	+19.96%
Max Drawdown (5Y) Largest decline over 5 years	-28.84%	-66.88%	+38.04%
Max Drawdown (10Y) Largest decline over 10 years	-40.38%	-85.99%	+45.61%
Current Drawdown Current decline from peak	-1.91%	-17.88%	+15.97%
Average Drawdown Average peak-to-trough decline	-22.61%	-31.10%	+8.49%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.80%	18.17%	-12.37%

Volatility

IAI vs. FAS - Volatility Comparison

The current volatility for iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI) is 5.64%, while Direxion Daily Financial Bull 3X Shares (FAS) has a volatility of 12.26%. This indicates that IAI experiences smaller price fluctuations and is considered to be less risky than FAS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IAI	FAS	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.64%	12.26%	-6.62%
Volatility (6M) Calculated over the trailing 6-month period	15.39%	33.44%	-18.05%
Volatility (1Y) Calculated over the trailing 1-year period	19.29%	43.36%	-24.07%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.42%	55.35%	-33.93%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.75%	61.18%	-38.43%

IAI vs. FAS - Expense Ratio Comparison

IAI has a 0.38% expense ratio, which is lower than FAS's 1.00% expense ratio.

Dividends

IAI vs. FAS - Dividend Comparison

IAI's dividend yield for the trailing twelve months is around 1.10%, less than FAS's 9.32% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FAS Direxion Daily Financial Bull 3X Shares	9.32%	8.21%	0.76%	1.77%	0.91%	0.60%	0.47%	0.62%	1.43%	0.11%	0.00%	0.00%
IAI iShares U.S. Broker-Dealers & Securities Exchanges ETF	1.10%	0.95%	1.05%	1.80%	2.14%	1.31%	1.55%	1.52%	1.58%	1.37%	1.49%	1.31%

Frequently Asked Questions

Can I hold both IAI and FAS in my portfolio?

IAI and FAS have a correlation of 0.75, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IAI or FAS?

FAS has higher volatility (12.26%) compared to IAI (5.64%). In terms of maximum drawdown, IAI dropped -75.46% vs FAS's -91.61%.

Which ETF is better, IAI or FAS?

On 10-year performance, FAS leads with 22.50% vs 19.81% for IAI. On fees, IAI is cheaper at 0.38% per year. On volatility, IAI has been the lower-risk option at 5.64%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IAI or FAS?

Over the 10-year period, FAS has performed better with a 22.50% return vs 19.81%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IAI or FAS?

IAI is cheaper with a 0.38% expense ratio, compared with 1.00% for FAS.

Which ETF pays a higher dividend yield, IAI or FAS?

FAS has the higher dividend yield at 9.32%, compared with 1.10% for IAI.

What is the main difference between IAI and FAS?

IAI is categorized as Financials Equities, while FAS is Leveraged Equities. IAI tracks Dow Jones U.S. Select Investment Services Index, while FAS tracks Russell 1000 Financial Services Index (300%). They also come from different issuers: iShares and Direxion. Their fees differ too: 0.38% for IAI and 1.00% for FAS.

Which has better risk-adjusted returns?

IAI currently has the higher Sharpe Ratio (0.89 vs 0.13), 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.