IAI vs. XLK

Last updated Jun 13, 2026

IAI (iShares U.S. Broker-Dealers & Securities Exchanges ETF) and XLK (State Street Technology Select Sector SPDR ETF) are both exchange-traded funds - IAI is a Financials Equities fund tracking the DJ US Select / Investment Services, while XLK is a Technology Equities fund tracking the S&P Technology Select Sector Daily Capped 35/20 Index. Both are passively managed. Over the past 10 years, IAI returned 19.37%/yr vs 25.19%/yr for XLK. A 0.65 correlation means they provide meaningful diversification when combined. IAI charges 0.41%/yr vs 0.08%/yr for XLK.

Performance

IAI vs. XLK - 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 State Street Technology Select Sector SPDR ETF (XLK). 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 lower than XLK's 28.52% return. Over the past 10 years, IAI has underperformed XLK with an annualized return of 19.37%, while XLK has yielded a comparatively higher 25.19% annualized 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%

XLK

• 1D: 0.87%
• 1M: 4.50%
• YTD: 28.52%
• 6M: 28.96%
• 1Y: 53.24%
• 3Y*: 30.28%
• 5Y*: 22.02%
• 10Y*: 25.19%

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

IAI vs. XLK - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
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%
XLK State Street Technology Select Sector SPDR ETF	28.52%	24.61%	21.63%	56.02%	-27.73%	34.74%	43.62%	49.86%	-1.68%	34.26%

Correlation

The correlation between IAI and XLK is 0.57, 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	0.57
Correlation (3Y) Calculated over the trailing 3-year period	0.55
Correlation (5Y) Calculated over the trailing 5-year period	0.61
Correlation (10Y) Calculated over the trailing 10-year period	0.58
Correlation (All Time) Calculated using the full available price history since May 5, 2006	0.65

The correlation between IAI and XLK shifts across timeframes, from 0.55 (3 years) to 0.65 (all time), reflecting how their relationship changes across market environments.

IAI vs. XLK - Sectors Allocation Comparison

Sectors	IAI	XLK
Financial Services	99.9%	-
Technology	0.1%	99.7%
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	0.2%
Healthcare	-	-
Industrials	-	0.1%
Real Estate	-	-
Utilities	-	-

Return for Risk

IAI vs. XLK — 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

XLK

XLK Risk / Return Rank: 76
XLK Sharpe Ratio Rank: 85
XLK Sortino Ratio Rank: 76
XLK Omega Ratio Rank: 78
XLK Calmar Ratio Rank: 75
XLK Martin Ratio Rank: 68

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. XLK - 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 State Street Technology Select Sector SPDR ETF (XLK). 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	XLK	Difference
Sharpe ratio: Return per unit of total volatility	1.00	2.37	-1.38
Sortino ratio: Return per unit of downside risk	1.43	2.92	-1.49
Omega ratio: Gain probability vs. loss probability	1.18	1.39	-0.22
Calmar ratio: Return relative to maximum drawdown	1.17	3.36	-2.19
Martin ratio: Return relative to average drawdown	3.33	10.85	-7.52

IAI vs. XLK - Sharpe Ratio Comparison

The current IAI Sharpe Ratio is 1.00, which is lower than the XLK Sharpe Ratio of 2.37. The chart below compares the historical Sharpe Ratios of IAI and XLK, 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. XLK - Drawdown Comparison

The maximum IAI drawdown since its inception was -75.46%, smaller than the maximum XLK drawdown of -82.05%. Use the drawdown chart below to compare losses from any high point for IAI and XLK.

Drawdown Indicators

	IAI	XLK	Difference
Max Drawdown Largest peak-to-trough decline	-75.46%	-82.05%	+6.59%
Max Drawdown (1Y) Largest decline over 1 year	-16.52%	-15.92%	-0.60%
Max Drawdown (3Y) Largest decline over 3 years	-23.14%	-25.66%	+2.52%
Max Drawdown (5Y) Largest decline over 5 years	-28.84%	-33.56%	+4.72%
Max Drawdown (10Y) Largest decline over 10 years	-40.38%	-33.56%	-6.82%
Current Drawdown Current decline from peak	-2.81%	-6.77%	+3.96%
Average Drawdown Average peak-to-trough decline	-22.63%	-34.93%	+12.30%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.80%	4.92%	+0.88%

Volatility

IAI vs. XLK - Volatility Comparison

The current volatility for iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI) is 5.98%, while State Street Technology Select Sector SPDR ETF (XLK) has a volatility of 10.86%. This indicates that IAI experiences smaller price fluctuations and is considered to be less risky than XLK based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IAI	XLK	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.98%	10.86%	-4.88%
Volatility (6M) Calculated over the trailing 6-month period	15.34%	18.92%	-3.58%
Volatility (1Y) Calculated over the trailing 1-year period	19.44%	22.55%	-3.11%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.48%	25.18%	-3.70%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.85%	24.64%	-1.79%

IAI vs. XLK - Expense Ratio Comparison

IAI has a 0.41% expense ratio, which is higher than XLK's 0.08% expense ratio.

Dividends

IAI vs. XLK - Dividend Comparison

IAI's dividend yield for the trailing twelve months is around 1.05%, more than XLK's 0.41% 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%
XLK State Street Technology Select Sector SPDR ETF	0.41%	0.54%	0.66%	0.76%	1.04%	0.65%	0.92%	1.16%	1.60%	1.37%	1.74%	1.79%

Frequently Asked Questions

Can I hold both IAI and XLK in my portfolio?

IAI and XLK have a correlation of 0.57, 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 XLK?

XLK has higher volatility (10.86%) compared to IAI (5.98%). In terms of maximum drawdown, IAI dropped -75.46% vs XLK's -82.05%.

Which ETF is better, IAI or XLK?

On 10-year performance, XLK leads with 25.19% vs 19.37% for IAI. On fees, XLK is cheaper at 0.08% 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 XLK?

Over the 10-year period, XLK has performed better with a 25.19% return vs 19.37%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IAI or XLK?

XLK is cheaper with a 0.08% expense ratio, compared with 0.41% for IAI.

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

IAI has the higher dividend yield at 1.05%, compared with 0.41% for XLK.

What is the main difference between IAI and XLK?

IAI is categorized as Financials Equities, while XLK is Technology Equities. IAI tracks DJ US Select / Investment Services, while XLK tracks S&P Technology Select Sector Daily Capped 35/20 Index. They also come from different issuers: iShares and State Street. Their fees differ too: 0.41% for IAI and 0.08% for XLK.

Which has better risk-adjusted returns?

XLK currently has the higher Sharpe Ratio (2.37 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.