IAI vs. KCE

Last updated Jun 24, 2026

IAI (iShares U.S. Broker-Dealers & Securities Exchanges ETF) and KCE (SPDR S&P Capital Markets ETF) are both Financials Equities funds - IAI tracks the Dow Jones U.S. Select Investment Services Index while KCE tracks the S&P Capital Markets Select Industry Index. Both are passively managed. Over the past 10 years, IAI returned 19.81%/yr vs 17.98%/yr for KCE. Their correlation of 0.93 suggests significant overlap in exposure. IAI charges 0.38%/yr vs 0.35%/yr for KCE.

Performance

IAI vs. KCE - 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 SPDR S&P Capital Markets ETF (KCE). 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 KCE's 2.72% return. Over the past 10 years, IAI has outperformed KCE with an annualized return of 19.81%, while KCE has yielded a comparatively lower 17.98% 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%

KCE

• 1D: -0.99%
• 1M: 0.68%
• YTD: 2.72%
• 6M: 0.82%
• 1Y: 12.37%
• 3Y*: 25.43%
• 5Y*: 12.47%
• 10Y*: 17.98%

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

IAI vs. KCE - 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%
KCE SPDR S&P Capital Markets ETF	2.72%	10.76%	37.51%	32.04%	-22.14%	40.05%	30.82%	27.13%	-15.63%	32.01%

Correlation

The correlation between IAI and KCE is 0.89, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.89
Correlation (3Y) Calculated over the trailing 3-year period	0.91
Correlation (5Y) Calculated over the trailing 5-year period	0.91
Correlation (10Y) Calculated over the trailing 10-year period	0.91
Correlation (All Time) Calculated using the full available price history since May 5, 2006	0.93

The correlation between IAI and KCE has been stable across timeframes, ranging from 0.89 to 0.93 - a consistent structural relationship.

IAI vs. KCE - Sectors Allocation Comparison

Sectors	IAI	KCE
Financial Services	99.9%	98.8%
Technology	0.1%	1.2%
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	-
Industrials	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

IAI vs. KCE — 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

KCE

KCE Risk / Return Rank: 18
KCE Sharpe Ratio Rank: 19
KCE Sortino Ratio Rank: 18
KCE Omega Ratio Rank: 18
KCE Calmar Ratio Rank: 18
KCE Martin Ratio Rank: 18

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. KCE - 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 SPDR S&P Capital Markets ETF (KCE). 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	KCE	Difference
Sharpe ratio: Return per unit of total volatility	0.89	0.62	+0.27
Sortino ratio: Return per unit of downside risk	1.30	0.97	+0.33
Omega ratio: Gain probability vs. loss probability	1.16	1.12	+0.04
Calmar ratio: Return relative to maximum drawdown	1.04	0.71	+0.33
Martin ratio: Return relative to average drawdown	2.96	1.85	+1.12

IAI vs. KCE - Sharpe Ratio Comparison

The current IAI Sharpe Ratio is 0.89, which is higher than the KCE Sharpe Ratio of 0.62. The chart below compares the historical Sharpe Ratios of IAI and KCE, 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. KCE - Drawdown Comparison

The maximum IAI drawdown since its inception was -75.46%, roughly equal to the maximum KCE drawdown of -74.00%. Use the drawdown chart below to compare losses from any high point for IAI and KCE.

Drawdown Indicators

	IAI	KCE	Difference
Max Drawdown Largest peak-to-trough decline	-75.46%	-74.00%	-1.46%
Max Drawdown (1Y) Largest decline over 1 year	-16.52%	-17.44%	+0.92%
Max Drawdown (3Y) Largest decline over 3 years	-23.14%	-26.31%	+3.17%
Max Drawdown (5Y) Largest decline over 5 years	-28.84%	-34.45%	+5.61%
Max Drawdown (10Y) Largest decline over 10 years	-40.38%	-40.78%	+0.40%
Current Drawdown Current decline from peak	-1.91%	-4.62%	+2.71%
Average Drawdown Average peak-to-trough decline	-22.61%	-22.76%	+0.15%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.80%	6.71%	-0.91%

Volatility

IAI vs. KCE - Volatility Comparison

iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI) and SPDR S&P Capital Markets ETF (KCE) have volatilities of 5.64% and 5.66%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IAI	KCE	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.64%	5.66%	-0.02%
Volatility (6M) Calculated over the trailing 6-month period	15.39%	15.31%	+0.08%
Volatility (1Y) Calculated over the trailing 1-year period	19.29%	19.97%	-0.68%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.42%	23.05%	-1.63%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.75%	22.95%	-0.20%

IAI vs. KCE - Expense Ratio Comparison

IAI has a 0.38% expense ratio, which is higher than KCE's 0.35% expense ratio.

Dividends

IAI vs. KCE - Dividend Comparison

IAI's dividend yield for the trailing twelve months is around 1.10%, less than KCE's 1.76% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
KCE SPDR S&P Capital Markets ETF	1.76%	1.63%	1.56%	1.82%	2.42%	1.53%	2.20%	2.32%	2.67%	1.95%	2.30%	2.43%

Frequently Asked Questions

Can I hold both IAI and KCE in my portfolio?

IAI and KCE have a correlation of 0.89, 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 KCE?

KCE has higher volatility (5.66%) compared to IAI (5.64%). In terms of maximum drawdown, IAI dropped -75.46% vs KCE's -74.00%.

Which ETF is better, IAI or KCE?

On 10-year performance, IAI leads with 19.81% vs 17.98% for KCE. On fees, KCE is cheaper at 0.35% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IAI or KCE?

Over the 10-year period, IAI has performed better with a 19.81% return vs 17.98%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IAI or KCE?

KCE is cheaper with a 0.35% expense ratio, compared with 0.38% for IAI.

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

KCE has the higher dividend yield at 1.76%, compared with 1.10% for IAI.

What is the main difference between IAI and KCE?

IAI tracks Dow Jones U.S. Select Investment Services Index, while KCE tracks S&P Capital Markets Select Industry Index. They also come from different issuers: iShares and State Street. Their fees differ too: 0.38% for IAI and 0.35% for KCE.

Which has better risk-adjusted returns?

IAI currently has the higher Sharpe Ratio (0.89 vs 0.62), 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.