IAI vs. SHLD

Last updated Jun 13, 2026

IAI (iShares U.S. Broker-Dealers & Securities Exchanges ETF) and SHLD (Global X Defense Tech ETF) are both exchange-traded funds - IAI is a Financials Equities fund tracking the DJ US Select / Investment Services, while SHLD is a Aerospace & Defense fund tracking the Global X Defense Tech Index. Both are passively managed. Over the past year, IAI returned 19.26% vs 10.40% for SHLD. At a 0.48 correlation, their price movements are largely independent. IAI charges 0.41%/yr vs 0.50%/yr for SHLD.

Performance

IAI vs. SHLD - 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 Global X Defense Tech ETF (SHLD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IAI achieves a 3.17% return, which is significantly higher than SHLD's -1.50% return.

IAI

• 1D: 1.83%
• 1M: 3.22%
• YTD: 3.17%
• 6M: 2.78%
• 1Y: 19.26%
• 3Y*: 28.06%
• 5Y*: 14.44%
• 10Y*: 19.37%

SHLD

• 1D: -2.04%
• 1M: 0.05%
• YTD: -1.50%
• 6M: -1.03%
• 1Y: 10.40%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

IAI vs. SHLD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
IAI iShares U.S. Broker-Dealers & Securities Exchanges ETF	3.17%	25.80%	34.37%	15.20%
SHLD Global X Defense Tech ETF	-1.50%	74.16%	35.03%	12.89%

Correlation

The correlation between IAI and SHLD is 0.42, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.42
Correlation (All Time) Calculated using the full available price history since Sep 13, 2023	0.48

IAI vs. SHLD - Sectors Allocation Comparison

Sectors	IAI	SHLD
Financial Services	99.9%	-
Technology	0.1%	11.8%
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	-
Industrials	-	88.2%
Real Estate	-	-
Utilities	-	-

Return for Risk

IAI vs. SHLD — Risk / Return Rank

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

IAI

IAI Risk / Return Rank: 29
IAI Sharpe Ratio Rank: 31
IAI Sortino Ratio Rank: 30
IAI Omega Ratio Rank: 29
IAI Calmar Ratio Rank: 27
IAI Martin Ratio Rank: 27

SHLD

SHLD Risk / Return Rank: 16
SHLD Sharpe Ratio Rank: 17
SHLD Sortino Ratio Rank: 17
SHLD Omega Ratio Rank: 16
SHLD Calmar Ratio Rank: 16
SHLD Martin Ratio Rank: 16

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. SHLD - 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 Global X Defense Tech ETF (SHLD). 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	SHLD	Difference
Sharpe ratio: Return per unit of total volatility	1.00	0.43	+0.57
Sortino ratio: Return per unit of downside risk	1.43	0.78	+0.65
Omega ratio: Gain probability vs. loss probability	1.18	1.09	+0.09
Calmar ratio: Return relative to maximum drawdown	1.17	0.52	+0.65
Martin ratio: Return relative to average drawdown	3.33	1.28	+2.04

IAI vs. SHLD - Sharpe Ratio Comparison

The current IAI Sharpe Ratio is 1.00, which is higher than the SHLD Sharpe Ratio of 0.43. The chart below compares the historical Sharpe Ratios of IAI and SHLD, 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. SHLD - Drawdown Comparison

The maximum IAI drawdown since its inception was -75.46%, which is greater than SHLD's maximum drawdown of -20.10%. Use the drawdown chart below to compare losses from any high point for IAI and SHLD.

Drawdown Indicators

	IAI	SHLD	Difference
Max Drawdown Largest peak-to-trough decline	-75.46%	-20.10%	-55.36%
Max Drawdown (1Y) Largest decline over 1 year	-16.52%	-20.10%	+3.58%
Max Drawdown (3Y) Largest decline over 3 years	-23.14%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-28.84%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-40.38%	—	—
Current Drawdown Current decline from peak	-2.81%	-18.20%	+15.39%
Average Drawdown Average peak-to-trough decline	-22.63%	-3.34%	-19.29%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.80%	8.12%	-2.32%

Volatility

IAI vs. SHLD - Volatility Comparison

The current volatility for iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI) is 5.98%, while Global X Defense Tech ETF (SHLD) has a volatility of 9.05%. This indicates that IAI experiences smaller price fluctuations and is considered to be less risky than SHLD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IAI	SHLD	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.98%	9.05%	-3.07%
Volatility (6M) Calculated over the trailing 6-month period	15.34%	19.94%	-4.60%
Volatility (1Y) Calculated over the trailing 1-year period	19.44%	24.55%	-5.11%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.48%	21.29%	+0.19%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.85%	21.29%	+1.56%

IAI vs. SHLD - Expense Ratio Comparison

IAI has a 0.41% expense ratio, which is lower than SHLD's 0.50% expense ratio.

Dividends

IAI vs. SHLD - Dividend Comparison

IAI's dividend yield for the trailing twelve months is around 1.05%, more than SHLD's 0.56% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
SHLD Global X Defense Tech ETF	0.56%	0.55%	0.53%	0.26%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both IAI and SHLD in my portfolio?

IAI and SHLD have a correlation of 0.42, 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 SHLD?

SHLD has higher volatility (9.05%) compared to IAI (5.98%). In terms of maximum drawdown, IAI dropped -75.46% vs SHLD's -20.10%.

Which ETF is better, IAI or SHLD?

On 1-year performance, IAI leads with 19.26% vs 10.40% for SHLD. On fees, IAI is cheaper at 0.41% per year. On volatility, IAI has been the lower-risk option at 5.98%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IAI or SHLD?

Over the 1-year period, IAI has performed better with a 19.26% return vs 10.40%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IAI or SHLD?

IAI is cheaper with a 0.41% expense ratio, compared with 0.50% for SHLD.

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

IAI has the higher dividend yield at 1.05%, compared with 0.56% for SHLD.

What is the main difference between IAI and SHLD?

IAI is categorized as Financials Equities, while SHLD is Aerospace & Defense. IAI tracks DJ US Select / Investment Services, while SHLD tracks Global X Defense Tech Index. They also come from different issuers: iShares and Global X. Their fees differ too: 0.41% for IAI and 0.50% for SHLD.

Which has better risk-adjusted returns?

IAI currently has the higher Sharpe Ratio (1.00 vs 0.43), 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.