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IAI vs. HEFA
Performance
Return for Risk
Drawdowns
Volatility
Dividends

IAI vs. HEFA

Last updated Jun 14, 2026

IAI (iShares U.S. Broker-Dealers & Securities Exchanges ETF) and HEFA (iShares Currency Hedged MSCI EAFE ETF) are both exchange-traded funds - IAI is a Financials Equities fund tracking the DJ US Select / Investment Services, while HEFA is a Foreign Large Cap Equities fund tracking the MSCI EAFE 100% Hedged to USD Index. Both are passively managed. Over the past 10 years, IAI returned 19.37%/yr vs 13.27%/yr for HEFA. A 0.67 correlation means they provide meaningful diversification when combined. IAI charges 0.41%/yr vs 0.35%/yr for HEFA.

Performance

IAI vs. HEFA - 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 iShares Currency Hedged MSCI EAFE ETF (HEFA). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, IAI achieves a 3.17% return, which is significantly lower than HEFA's 11.36% return. Over the past 10 years, IAI has outperformed HEFA with an annualized return of 19.37%, while HEFA has yielded a comparatively lower 13.27% annualized return.

IAI

1D
1.83%
1M
3.71%
YTD
3.17%
6M
2.78%
1Y
21.00%
3Y*
28.06%
5Y*
14.44%
10Y*
19.37%

HEFA

1D
0.33%
1M
3.88%
YTD
11.36%
6M
12.73%
1Y
28.01%
3Y*
18.32%
5Y*
13.57%
10Y*
13.27%
*Multi-year figures are annualized to reflect compound growth (CAGR)

IAI vs. HEFA - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
IAI
iShares U.S. Broker-Dealers & Securities Exchanges ETF		3.17%25.80%34.37%15.27%-10.87%40.48%18.61%24.26%-9.47%28.86%
HEFA
iShares Currency Hedged MSCI EAFE ETF		11.36%24.58%13.71%20.33%-4.86%19.59%2.09%27.63%-9.33%16.67%

Correlation

The correlation between IAI and HEFA is 0.56, 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

0.56

Correlation (3Y)
Calculated over the trailing 3-year period

0.59

Correlation (5Y)
Calculated over the trailing 5-year period

0.67

Correlation (10Y)
Calculated over the trailing 10-year period

0.68

Correlation (All Time)
Calculated using the full available price history since Feb 14, 2014

0.67

The correlation between IAI and HEFA shifts across timeframes, from 0.56 (1 year) to 0.68 (10 years), reflecting how their relationship changes across market environments.

IAI vs. HEFA - Sectors Allocation Comparison

Sectors
IAI
HEFA

Financial Services

99.9%
24.9%

Technology

0.1%
12.7%

Basic Materials

-

6.2%

Communication Services

-

4.5%

Consumer Cyclical

-

6.8%

Consumer Defensive

-

6.4%

Energy

-

3.9%

Healthcare

-

10.2%

Industrials

-

18.4%

Real Estate

-

1.2%

Utilities

-

3.4%

Financial Services

IAI
99.9%
HEFA
24.9%

Technology

IAI
0.1%
HEFA
12.7%

Basic Materials

IAI

-

HEFA
6.2%

Communication Services

IAI

-

HEFA
4.5%

Consumer Cyclical

IAI

-

HEFA
6.8%

Consumer Defensive

IAI

-

HEFA
6.4%

Energy

IAI

-

HEFA
3.9%

Healthcare

IAI

-

HEFA
10.2%

Industrials

IAI

-

HEFA
18.4%

Real Estate

IAI

-

HEFA
1.2%

Utilities

IAI

-

HEFA
3.4%

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

iShares U.S. Broker-Dealers & Securities Exchanges ETF

iShares Currency Hedged MSCI EAFE ETF

Often compared with IAI:
IAI vs. KCEIAI vs. XLFIAI vs. SPYIAI vs. QQQIAI vs. KIEIAI vs. FASIAI vs. FXO
Often compared with HEFA:
HEFA vs. DBEFHEFA vs. HAWXHEFA vs. FNDFHEFA vs. IDMOHEFA vs. HSCZHEFA vs. HEWJHEFA vs. HEZU

Return for Risk

IAI vs. HEFA — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
IAI
IAI Risk / Return Rank: 2929
Overall Rank
IAI Sharpe Ratio Rank: 3131
Sharpe Ratio Rank
IAI Sortino Ratio Rank: 3030
Sortino Ratio Rank
IAI Omega Ratio Rank: 2929
Omega Ratio Rank
IAI Calmar Ratio Rank: 2727
Calmar Ratio Rank
IAI Martin Ratio Rank: 2727
Martin Ratio Rank
HEFA
HEFA Risk / Return Rank: 7272
Overall Rank
HEFA Sharpe Ratio Rank: 7474
Sharpe Ratio Rank
HEFA Sortino Ratio Rank: 7474
Sortino Ratio Rank
HEFA Omega Ratio Rank: 7575
Omega Ratio Rank
HEFA Calmar Ratio Rank: 6464
Calmar Ratio Rank
HEFA Martin Ratio Rank: 7373
Martin Ratio Rank
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. HEFA - 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 iShares Currency Hedged MSCI EAFE ETF (HEFA). 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.

IAIHEFADifference
Sharpe ratioReturn per unit of total volatility
1.00
2.05

-1.05

Sortino ratioReturn per unit of downside risk
1.43
2.87

-1.45

Omega ratioGain probability vs. loss probability

1.18

1.38

-0.20

Calmar ratioReturn relative to maximum drawdown

1.17

2.81

-1.64

Martin ratioReturn relative to average drawdown

3.33

11.78

-8.45

IAI vs. HEFA - Sharpe Ratio Comparison

The current IAI Sharpe Ratio is 1.00, which is lower than the HEFA Sharpe Ratio of 2.05. The chart below compares the historical Sharpe Ratios of IAI and HEFA, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Drawdowns

IAI vs. HEFA - Drawdown Comparison

The maximum IAI drawdown since its inception was -75.46%, which is greater than HEFA's maximum drawdown of -32.39%. Use the drawdown chart below to compare losses from any high point for IAI and HEFA.

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Drawdown Indicators

IAIHEFADifference

Max Drawdown

Largest peak-to-trough decline

-75.46%

-32.39%

-43.07%

Max Drawdown (1Y)

Largest decline over 1 year

-16.52%

-9.52%

-7.00%

Max Drawdown (3Y)

Largest decline over 3 years

-23.14%

-14.28%

-8.86%

Max Drawdown (5Y)

Largest decline over 5 years

-28.84%

-14.79%

-14.05%

Max Drawdown (10Y)

Largest decline over 10 years

-40.38%

-32.39%

-7.99%

Current Drawdown

Current decline from peak

-2.81%

0.00%

-2.81%

Average Drawdown

Average peak-to-trough decline

-22.63%

-4.16%

-18.47%

Ulcer Index

Depth and duration of drawdowns from previous peaks

5.80%

2.28%

+3.52%

Volatility

IAI vs. HEFA - Volatility Comparison

iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI) has a higher volatility of 5.98% compared to iShares Currency Hedged MSCI EAFE ETF (HEFA) at 4.55%. This indicates that IAI's price experiences larger fluctuations and is considered to be riskier than HEFA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

IAIHEFADifference

Volatility (1M)

Calculated over the trailing 1-month period

5.98%

4.55%

+1.43%

Volatility (6M)

Calculated over the trailing 6-month period

15.34%

10.68%

+4.66%

Volatility (1Y)

Calculated over the trailing 1-year period

19.44%

13.08%

+6.36%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

21.48%

13.85%

+7.63%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

22.85%

15.86%

+6.99%

IAI vs. HEFA - Expense Ratio Comparison

IAI has a 0.41% expense ratio, which is higher than HEFA's 0.35% expense ratio.

Dividends

IAI vs. HEFA - Dividend Comparison

IAI's dividend yield for the trailing twelve months is around 1.05%, less than HEFA's 3.95% yield.

PositionTTM20252024202320222021202020192018201720162015
HEFA
iShares Currency Hedged MSCI EAFE ETF		3.95%4.40%3.09%3.02%25.14%3.06%2.10%7.56%4.58%2.55%3.17%3.54%
IAI
iShares U.S. Broker-Dealers & Securities Exchanges ETF		1.05%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

IAI and HEFA have a correlation of 0.56, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

IAI has higher volatility (5.98%) compared to HEFA (4.55%). In terms of maximum drawdown, IAI dropped -75.46% vs HEFA's -32.39%.

On 10-year performance, IAI leads with 19.37% vs 13.27% for HEFA. On fees, HEFA is cheaper at 0.35% per year. On volatility, HEFA has been the lower-risk option at 4.55%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, IAI has performed better with a 19.37% return vs 13.27%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

HEFA is cheaper with a 0.35% expense ratio, compared with 0.41% for IAI.

HEFA has the higher dividend yield at 3.95%, compared with 1.05% for IAI.

IAI is categorized as Financials Equities, while HEFA is Foreign Large Cap Equities. IAI tracks DJ US Select / Investment Services, while HEFA tracks MSCI EAFE 100% Hedged to USD Index. Their fees differ too: 0.41% for IAI and 0.35% for HEFA.

HEFA currently has the higher Sharpe Ratio (2.05 vs 1.00), 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.

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