IAI vs. XLF
Compare and contrast key facts about iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI) and Financial Select Sector SPDR Fund (XLF).
IAI and XLF are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. IAI is a passively managed fund by iShares that tracks the performance of the DJ US Select / Investment Services. It was launched on May 1, 2006. XLF is a passively managed fund by State Street that tracks the performance of the Financial Select Sector Index. It was launched on Dec 16, 1998. Both IAI and XLF are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: IAI or XLF.
Key characteristics
| IAI | XLF | |
|---|---|---|
| YTD Return | 38.91% | 33.79% |
| 1Y Return | 62.53% | 49.31% |
| 3Y Return (Ann) | 11.77% | 9.45% |
| 5Y Return (Ann) | 19.82% | 13.15% |
| 10Y Return (Ann) | 15.79% | 11.95% |
| Sharpe Ratio | 3.77 | 3.54 |
| Sortino Ratio | 5.21 | 4.96 |
| Omega Ratio | 1.69 | 1.65 |
| Calmar Ratio | 3.82 | 3.19 |
| Martin Ratio | 29.40 | 25.45 |
| Ulcer Index | 2.12% | 1.93% |
| Daily Std Dev | 16.52% | 13.86% |
| Max Drawdown | -75.33% | -82.69% |
| Current Drawdown | -0.74% | -0.30% |
Correlation
The correlation between IAI and XLF is 0.89, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
IAI vs. XLF - Performance Comparison
In the year-to-date period, IAI achieves a 38.91% return, which is significantly higher than XLF's 33.79% return. Over the past 10 years, IAI has outperformed XLF with an annualized return of 15.79%, while XLF has yielded a comparatively lower 11.95% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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IAI vs. XLF - Expense Ratio Comparison
IAI has a 0.41% expense ratio, which is higher than XLF's 0.13% expense ratio.
Risk-Adjusted Performance
IAI vs. XLF - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI) and Financial Select Sector SPDR Fund (XLF). 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.
Dividends
IAI vs. XLF - Dividend Comparison
IAI's dividend yield for the trailing twelve months is around 1.01%, less than XLF's 1.34% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IAI iShares U.S. Broker-Dealers & Securities Exchanges ETF | 1.01% | 1.80% | 2.14% | 1.31% | 1.55% | 1.52% | 1.58% | 1.37% | 1.48% | 1.31% | 1.13% | 1.13% |
XLF Financial Select Sector SPDR Fund | 1.34% | 1.71% | 2.04% | 1.63% | 2.03% | 1.86% | 2.09% | 1.48% | 1.63% | 1.95% | 1.61% | 1.47% |
Drawdowns
IAI vs. XLF - Drawdown Comparison
The maximum IAI drawdown since its inception was -75.33%, smaller than the maximum XLF drawdown of -82.69%. Use the drawdown chart below to compare losses from any high point for IAI and XLF. For additional features, visit the drawdowns tool.
Volatility
IAI vs. XLF - Volatility Comparison
iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI) has a higher volatility of 8.94% compared to Financial Select Sector SPDR Fund (XLF) at 7.08%. This indicates that IAI's price experiences larger fluctuations and is considered to be riskier than XLF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.