IAI vs. FNCL

Last updated Jun 4, 2026

IAI (iShares U.S. Broker-Dealers & Securities Exchanges ETF) and FNCL (Fidelity MSCI Financials Index ETF) are both Financials Equities funds - IAI tracks the DJ US Select / Investment Services while FNCL tracks the MSCI USA IMI Financials Index. Both are passively managed. Over the past 10 years, IAI returned 18.46%/yr vs 12.14%/yr for FNCL. Their correlation of 0.89 suggests significant overlap in exposure. IAI charges 0.41%/yr vs 0.08%/yr for FNCL.

Performance

IAI vs. FNCL - 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 Fidelity MSCI Financials Index ETF (FNCL). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IAI achieves a 0.24% return, which is significantly higher than FNCL's -6.43% return. Over the past 10 years, IAI has outperformed FNCL with an annualized return of 18.46%, while FNCL has yielded a comparatively lower 12.14% annualized return.

IAI

• 1D: -1.71%
• 1M: 1.75%
• YTD: 0.24%
• 6M: 1.73%
• 1Y: 16.52%
• 3Y*: 27.84%
• 5Y*: 13.43%
• 10Y*: 18.46%

FNCL

• 1D: -1.42%
• 1M: -1.74%
• YTD: -6.43%
• 6M: -3.99%
• 1Y: 2.36%
• 3Y*: 18.42%
• 5Y*: 7.79%
• 10Y*: 12.14%

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

IAI vs. FNCL - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IAI iShares U.S. Broker-Dealers & Securities Exchanges ETF	0.24%	25.80%	34.37%	15.27%	-10.87%	40.48%	18.61%	24.26%	-9.47%	28.86%
FNCL Fidelity MSCI Financials Index ETF	-6.43%	14.94%	30.44%	14.10%	-12.28%	34.92%	-2.19%	31.59%	-13.44%	19.99%

Correlation

The correlation between IAI and FNCL is 0.78, 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	0.78
Correlation (3Y) Calculated over the trailing 3-year period	0.84
Correlation (5Y) Calculated over the trailing 5-year period	0.88
Correlation (10Y) Calculated over the trailing 10-year period	0.89
Correlation (All Time) Calculated using the full available price history since Oct 25, 2013	0.89

The correlation between IAI and FNCL shifts across timeframes, from 0.78 (1 year) to 0.89 (10 years), reflecting how their relationship changes across market environments.

IAI vs. FNCL - Sectors Allocation Comparison

Sectors	IAI	FNCL
Financial Services	99.9%	96.9%
Technology	0.1%	2.1%
Basic Materials	-	-
Communication Services	-	0.0%
Consumer Cyclical	-	0.0%
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	0.0%
Industrials	-	0.2%
Real Estate	-	0.7%
Utilities	-	-

Return for Risk

IAI vs. FNCL — Risk / Return Rank

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

IAI

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

FNCL

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

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. FNCL - 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 Fidelity MSCI Financials Index ETF (FNCL). 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.

	IAI	FNCL	Difference
Sharpe ratio Return per unit of total volatility	0.87	0.16	+0.71
Sortino ratio Return per unit of downside risk	1.27	0.32	+0.95
Omega ratio Gain probability vs. loss probability	1.16	1.04	+0.12
Calmar ratio Return relative to maximum drawdown	1.00	0.16	+0.84
Martin ratio Return relative to average drawdown	2.88	0.43	+2.45
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IAI vs. FNCL - Sharpe Ratio Comparison

The current IAI Sharpe Ratio is 0.87, which is higher than the FNCL Sharpe Ratio of 0.16. The chart below compares the historical Sharpe Ratios of IAI and FNCL, 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

	IAI	FNCL	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.87	0.16	+0.71
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.63	0.41	+0.22
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.81	0.55	+0.27
Sharpe Ratio (All Time) Calculated using the full available price history	0.28	0.53	-0.25

Drawdowns

IAI vs. FNCL - Drawdown Comparison

The maximum IAI drawdown since its inception was -75.46%, which is greater than FNCL's maximum drawdown of -44.38%. Use the drawdown chart below to compare losses from any high point for IAI and FNCL.

Drawdown Indicators

	IAI	FNCL	Difference
Max Drawdown Largest peak-to-trough decline	-75.46%	-44.38%	-31.08%
Max Drawdown (1Y) Largest decline over 1 year	-16.52%	-14.78%	-1.74%
Max Drawdown (3Y) Largest decline over 3 years	-23.14%	-17.29%	-5.85%
Max Drawdown (5Y) Largest decline over 5 years	-28.84%	-25.68%	-3.16%
Max Drawdown (10Y) Largest decline over 10 years	-40.38%	-44.38%	+4.00%
Current Drawdown Current decline from peak	-5.57%	-9.28%	+3.71%
Average Drawdown Average peak-to-trough decline	-22.66%	-6.90%	-15.76%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.75%	5.56%	+0.19%

Volatility

IAI vs. FNCL - Volatility Comparison

iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI) has a higher volatility of 4.48% compared to Fidelity MSCI Financials Index ETF (FNCL) at 3.26%. This indicates that IAI's price experiences larger fluctuations and is considered to be riskier than FNCL based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IAI	FNCL	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.48%	3.26%	+1.22%
Volatility (6M) Calculated over the trailing 6-month period	14.92%	11.03%	+3.89%
Volatility (1Y) Calculated over the trailing 1-year period	19.05%	14.76%	+4.29%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.42%	19.26%	+2.16%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.84%	22.34%	+0.50%

IAI vs. FNCL - Expense Ratio Comparison

IAI has a 0.41% expense ratio, which is higher than FNCL's 0.08% expense ratio.

Dividends

IAI vs. FNCL - Dividend Comparison

IAI's dividend yield for the trailing twelve months is around 1.08%, less than FNCL's 1.70% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FNCL Fidelity MSCI Financials Index ETF	1.70%	1.45%	1.52%	1.91%	2.29%	1.75%	2.26%	2.17%	2.37%	1.60%	1.81%	2.17%
IAI iShares U.S. Broker-Dealers & Securities Exchanges ETF	1.08%	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 FNCL in my portfolio?

IAI and FNCL have a correlation of 0.78, 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 FNCL?

IAI has higher volatility (4.48%) compared to FNCL (3.26%). In terms of maximum drawdown, IAI dropped -75.46% vs FNCL's -44.38%.

Which ETF is better, IAI or FNCL?

On 10-year performance, IAI leads with 18.46% vs 12.14% for FNCL. On fees, FNCL is cheaper at 0.08% per year. On volatility, FNCL has been the lower-risk option at 3.26%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IAI or FNCL?

Over the 10-year period, IAI has performed better with a 18.46% return vs 12.14%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IAI or FNCL?

FNCL is cheaper with a 0.08% expense ratio, compared with 0.41% for IAI.

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

FNCL has the higher dividend yield at 1.70%, compared with 1.08% for IAI.

What is the main difference between IAI and FNCL?

IAI tracks DJ US Select / Investment Services, while FNCL tracks MSCI USA IMI Financials Index. They also come from different issuers: iShares and Fidelity. Their fees differ too: 0.41% for IAI and 0.08% for FNCL.

Which has better risk-adjusted returns?

IAI currently has the higher Sharpe Ratio (0.87 vs 0.16), 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.