IAI vs. GRID

Last updated Jun 9, 2026

IAI (iShares U.S. Broker-Dealers & Securities Exchanges ETF) and GRID (First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund) are both exchange-traded funds - IAI is a Financials Equities fund tracking the DJ US Select / Investment Services, while GRID is a Alternative Energy Equities fund tracking the Nasdaq Clean Edge Smart Grid Infrastructure Index. Both are passively managed. Over the past 10 years, IAI returned 18.83%/yr vs 19.34%/yr for GRID. A 0.61 correlation means they provide meaningful diversification when combined. IAI charges 0.41%/yr vs 0.70%/yr for GRID.

Performance

IAI vs. GRID - 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 First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund (GRID). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IAI achieves a 0.78% return, which is significantly lower than GRID's 23.80% return. Both investments have delivered pretty close results over the past 10 years, with IAI having a 18.83% annualized return and GRID not far ahead at 19.34%.

IAI

• 1D: 0.01%
• 1M: 1.41%
• YTD: 0.78%
• 6M: 1.27%
• 1Y: 15.88%
• 3Y*: 27.06%
• 5Y*: 13.94%
• 10Y*: 18.83%

GRID

• 1D: 0.94%
• 1M: -4.01%
• YTD: 23.80%
• 6M: 23.19%
• 1Y: 44.25%
• 3Y*: 24.20%
• 5Y*: 16.92%
• 10Y*: 19.34%

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

IAI vs. GRID - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IAI iShares U.S. Broker-Dealers & Securities Exchanges ETF	0.78%	25.80%	34.37%	15.27%	-10.87%	40.48%	18.61%	24.26%	-9.47%	28.86%
GRID First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund	23.80%	29.65%	15.18%	21.57%	-13.89%	27.65%	48.84%	42.80%	-22.69%	27.44%

Correlation

The correlation between IAI and GRID is 0.50, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.50
Correlation (3Y) Calculated over the trailing 3-year period	0.63
Correlation (5Y) Calculated over the trailing 5-year period	0.69
Correlation (10Y) Calculated over the trailing 10-year period	0.63
Correlation (All Time) Calculated using the full available price history since Nov 17, 2009	0.61

The correlation between IAI and GRID shifts across timeframes, from 0.50 (1 year) to 0.69 (5 years), reflecting how their relationship changes across market environments.

IAI vs. GRID - Sectors Allocation Comparison

Sectors	IAI	GRID
Financial Services	99.9%	-
Technology	0.1%	11.0%
Basic Materials	-	0.0%
Communication Services	-	-
Consumer Cyclical	-	3.5%
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	-
Industrials	-	65.2%
Real Estate	-	-
Utilities	-	20.4%

Return for Risk

IAI vs. GRID — 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: 25
IAI Sortino Ratio Rank: 24
IAI Omega Ratio Rank: 24
IAI Calmar Ratio Rank: 23
IAI Martin Ratio Rank: 23

GRID

GRID Risk / Return Rank: 76
GRID Sharpe Ratio Rank: 76
GRID Sortino Ratio Rank: 71
GRID Omega Ratio Rank: 72
GRID Calmar Ratio Rank: 80
GRID Martin Ratio Rank: 80

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. GRID - 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 First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund (GRID). 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	GRID	Difference
Sharpe ratio: Return per unit of total volatility	0.83	2.22	-1.40
Sortino ratio: Return per unit of downside risk	1.22	2.91	-1.69
Omega ratio: Gain probability vs. loss probability	1.15	1.38	-0.24
Calmar ratio: Return relative to maximum drawdown	0.97	3.79	-2.83
Martin ratio: Return relative to average drawdown	2.76	14.15	-11.40
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. GRID - Sharpe Ratio Comparison

The current IAI Sharpe Ratio is 0.83, which is lower than the GRID Sharpe Ratio of 2.22. The chart below compares the historical Sharpe Ratios of IAI and GRID, 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	GRID	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.83	2.22	-1.40
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.65	0.81	-0.15
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.83	0.85	-0.02
Sharpe Ratio (All Time) Calculated using the full available price history	0.28	0.56	-0.28

Drawdowns

IAI vs. GRID - Drawdown Comparison

The maximum IAI drawdown since its inception was -75.46%, which is greater than GRID's maximum drawdown of -40.56%. Use the drawdown chart below to compare losses from any high point for IAI and GRID.

Drawdown Indicators

	IAI	GRID	Difference
Max Drawdown Largest peak-to-trough decline	-75.46%	-40.56%	-34.90%
Max Drawdown (1Y) Largest decline over 1 year	-16.52%	-11.73%	-4.79%
Max Drawdown (3Y) Largest decline over 3 years	-23.14%	-20.77%	-2.37%
Max Drawdown (5Y) Largest decline over 5 years	-28.84%	-29.64%	+0.80%
Max Drawdown (10Y) Largest decline over 10 years	-40.38%	-40.56%	+0.18%
Current Drawdown Current decline from peak	-5.06%	-5.25%	+0.19%
Average Drawdown Average peak-to-trough decline	-22.65%	-8.43%	-14.22%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.77%	3.14%	+2.63%

Volatility

IAI vs. GRID - Volatility Comparison

The current volatility for iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI) is 5.56%, while First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund (GRID) has a volatility of 8.65%. This indicates that IAI experiences smaller price fluctuations and is considered to be less risky than GRID based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IAI	GRID	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.56%	8.65%	-3.09%
Volatility (6M) Calculated over the trailing 6-month period	15.20%	16.87%	-1.67%
Volatility (1Y) Calculated over the trailing 1-year period	19.37%	20.03%	-0.66%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.47%	21.11%	+0.36%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.86%	22.86%	0.00%

IAI vs. GRID - Expense Ratio Comparison

IAI has a 0.41% expense ratio, which is lower than GRID's 0.70% expense ratio.

Dividends

IAI vs. GRID - Dividend Comparison

IAI's dividend yield for the trailing twelve months is around 1.07%, more than GRID's 0.80% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
GRID First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund	0.80%	1.01%	1.06%	1.23%	1.26%	0.63%	0.68%	1.26%	1.28%	1.07%	1.07%	1.23%
IAI iShares U.S. Broker-Dealers & Securities Exchanges ETF	1.07%	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 GRID in my portfolio?

IAI and GRID have a correlation of 0.50, 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 GRID?

GRID has higher volatility (8.65%) compared to IAI (5.56%). In terms of maximum drawdown, IAI dropped -75.46% vs GRID's -40.56%.

Which ETF is better, IAI or GRID?

On 10-year performance, GRID leads with 19.34% vs 18.83% for IAI. On fees, IAI is cheaper at 0.41% per year. On volatility, IAI has been the lower-risk option at 5.56%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IAI or GRID?

Over the 10-year period, GRID has performed better with a 19.34% return vs 18.83%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IAI or GRID?

IAI is cheaper with a 0.41% expense ratio, compared with 0.70% for GRID.

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

IAI has the higher dividend yield at 1.07%, compared with 0.80% for GRID.

What is the main difference between IAI and GRID?

IAI is categorized as Financials Equities, while GRID is Alternative Energy Equities. IAI tracks DJ US Select / Investment Services, while GRID tracks Nasdaq Clean Edge Smart Grid Infrastructure Index. They also come from different issuers: iShares and First Trust. Their fees differ too: 0.41% for IAI and 0.70% for GRID.

Which has better risk-adjusted returns?

GRID currently has the higher Sharpe Ratio (2.22 vs 0.82), 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.