PortfoliosLab logoPortfoliosLab logo

Documentation

Upgrade your plan
IAK vs. FXO
Performance
Return for Risk
Drawdowns
Volatility
Dividends

IAK vs. FXO

Last updated Aug 4, 2026
Documentation

IAK (iShares U.S. Insurance ETF) and FXO (First Trust Financials AlphaDEX Fund) are both Financials Equities funds - IAK tracks the Dow Jones U.S. Select Insurance Index while FXO tracks the StrataQuant Financials Index. Both are passively managed. Over the past 10 years, IAK returned 13.18%/yr vs 13.21%/yr for FXO. Their correlation of 0.82 means they have usually moved in the same direction. IAK charges 0.38%/yr vs 0.62%/yr for FXO.

Performance

IAK vs. FXO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares U.S. Insurance ETF (IAK) and First Trust Financials AlphaDEX Fund (FXO). The values are adjusted to include any dividend payments, if applicable.

Loading charts...

Returns By Period

In the year-to-date period, IAK achieves a 10.11% return, which is significantly lower than FXO's 11.49% return. Both investments have delivered pretty close results over the past 10 years, with IAK having a 13.18% annualized return and FXO not far ahead at 13.21%.

IAK

1D
0.03%
1M
-0.03%
6M
12.56%
YTD
10.11%
1Y
19.67%
3Y*
19.67%
5Y*
15.99%
10Y*
13.18%
ALL TIME*
7.39%

FXO

1D
0.90%
1M
3.92%
6M
9.72%
YTD
11.49%
1Y
21.75%
3Y*
20.02%
5Y*
11.58%
10Y*
13.21%
ALL TIME*
8.59%
*Multi-year figures are annualized to reflect compound growth (CAGR)

Liquidity Comparison

PositionAvg. Volume Value (2W)Avg. Volume Value (1M)Avg. Volume Value (3M)

FXO

First Trust Financials AlphaDEX Fund
$2.61M$3.06M$3.36M

IAK

iShares U.S. Insurance ETF
$15.27M$20.59M$12.29M

IAK vs. FXO - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
IAK
iShares U.S. Insurance ETF		10.11%9.50%28.25%11.28%11.33%26.84%-2.86%25.94%-11.48%14.18%
FXO
First Trust Financials AlphaDEX Fund		11.49%13.59%27.72%9.28%-9.24%37.76%5.95%26.31%-11.72%17.88%

Correlation

The correlation between IAK and FXO is 0.66, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

Correlation
Correlation (1Y)
Focuses on recent behavior, but can change the most.

0.66

Correlation (3Y)
Balances recent behavior with more history.

0.69

Correlation (5Y)
Shows whether the relationship held over a longer period.

0.76

Correlation (10Y)
Provides a long-term view across more market conditions.

0.82

Correlation (All Time)
Calculated using the full available price history since May 10, 2007

0.82

The correlation between IAK and FXO shifts across timeframes, from 0.66 (1 year) to 0.82 (all time), reflecting how their relationship changes across market environments.

IAK vs. FXO - Sectors Allocation Comparison

Sectors
IAK
FXO

Financial Services

99.3%
94.8%

Healthcare

0.7%

-

Basic Materials

-

-

Communication Services

-

-

Consumer Cyclical

-

-

Consumer Defensive

-

-

Energy

-

-

Industrials

-

-

Real Estate

-

4.8%

Technology

-

0.5%

Utilities

-

-

Financial Services

IAK
99.3%
FXO
94.8%

Healthcare

IAK
0.7%
FXO

-

Basic Materials

IAK

-

FXO

-

Communication Services

IAK

-

FXO

-

Consumer Cyclical

IAK

-

FXO

-

Consumer Defensive

IAK

-

FXO

-

Energy

IAK

-

FXO

-

Industrials

IAK

-

FXO

-

Real Estate

IAK

-

FXO
4.8%

Technology

IAK

-

FXO
0.5%

Utilities

IAK

-

FXO

-

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. Insurance ETF

First Trust Financials AlphaDEX Fund

Often compared with IAK:
IAK vs. KIEIAK vs. KBWPIAK vs. IHEIAK vs. DIVBIAK vs. INFLIAK vs. ^SP500TRIAK vs. VYM
Often compared with FXO:
FXO vs. IAIFXO vs. IXGFXO vs. KCEFXO vs. VFHFXO vs. VOOFXO vs. IHIFXO vs. BCD

Return for Risk

IAK vs. FXO — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.
IAK
IAK Risk / Return Rank: 5454
Overall Rank
IAK Sharpe Ratio Rank: 4949
Sharpe Ratio Rank
IAK Sortino Ratio Rank: 4949
Sortino Ratio Rank
IAK Omega Ratio Rank: 4747
Omega Ratio Rank
IAK Calmar Ratio Rank: 7272
Calmar Ratio Rank
IAK Martin Ratio Rank: 5252
Martin Ratio Rank
FXO
FXO Risk / Return Rank: 5252
Overall Rank
FXO Sharpe Ratio Rank: 5656
Sharpe Ratio Rank
FXO Sortino Ratio Rank: 5454
Sortino Ratio Rank
FXO Omega Ratio Rank: 5353
Omega Ratio Rank
FXO Calmar Ratio Rank: 4949
Calmar Ratio Rank
FXO Martin Ratio Rank: 4747
Martin Ratio Rank
The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

IAK vs. FXO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Insurance ETF (IAK) and First Trust Financials AlphaDEX Fund (FXO). 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.

IAKFXODifference
Sharpe ratioReturn per unit of total volatility
1.24
1.41

-0.17

Sortino ratioReturn per unit of downside risk
1.81
1.97

-0.17

Omega ratioGain probability vs. loss probability

1.22

1.25

-0.03

Calmar ratioReturn relative to maximum drawdown

2.59

1.86

+0.73

Martin ratioReturn relative to average drawdown

6.29

5.58

+0.71

IAK vs. FXO - Sharpe Ratio Comparison

The current IAK Sharpe Ratio is 1.24, which is comparable to the FXO Sharpe Ratio of 1.41. The chart below compares the historical Sharpe Ratios of IAK and FXO, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Loading charts...

Drawdowns

IAK vs. FXO - Drawdown Comparison

The maximum IAK drawdown since its inception was -77.38%, which is greater than FXO's maximum drawdown of -71.30%. Use the drawdown chart below to compare losses from any high point for IAK and FXO.

Loading charts...

Drawdown Indicators

IAKFXODifference

Max Drawdown

Largest peak-to-trough decline

-77.38%

-71.30%

-6.08%

Max Drawdown (1Y)

Largest decline over 1 year

-7.62%

-11.72%

+4.10%

Max Drawdown (3Y)

Largest decline over 3 years

-11.58%

-21.35%

+9.77%

Max Drawdown (5Y)

Largest decline over 5 years

-14.76%

-28.80%

+14.04%

Max Drawdown (10Y)

Largest decline over 10 years

-44.95%

-48.55%

+3.60%

Current Drawdown

Current decline from peak

-3.20%

-0.61%

-2.59%

Average Drawdown

Average peak-to-trough decline

-16.01%

-13.01%

-3.00%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.13%

3.91%

-0.78%

Volatility

IAK vs. FXO - Volatility Comparison

iShares U.S. Insurance ETF (IAK) has a higher volatility of 6.56% compared to First Trust Financials AlphaDEX Fund (FXO) at 4.18%. This indicates that IAK's price experiences larger fluctuations and is considered to be riskier than FXO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Loading charts...

Volatility by Period

IAKFXODifference

Volatility (1M)

Calculated over the trailing 1-month period

6.56%

4.18%

+2.38%

Volatility (6M)

Calculated over the trailing 6-month period

12.42%

11.06%

+1.36%

Volatility (1Y)

Calculated over the trailing 1-year period

15.99%

15.53%

+0.46%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

18.13%

21.72%

-3.59%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

20.92%

24.06%

-3.14%

IAK vs. FXO - Expense Ratio Comparison

IAK has a 0.38% expense ratio, which is lower than FXO's 0.62% expense ratio.

Dividends

IAK vs. FXO - Dividend Comparison

IAK's dividend yield for the trailing twelve months is around 2.42%, more than FXO's 1.97% yield.

PositionTTM20252024202320222021202020192018201720162015
FXO
First Trust Financials AlphaDEX Fund		1.97%1.78%1.97%2.98%2.49%1.91%2.60%1.72%2.60%1.62%1.35%1.51%
IAK
iShares U.S. Insurance ETF		2.42%1.69%1.49%1.44%1.69%2.26%2.07%1.84%2.33%1.62%1.68%1.62%

Frequently Asked Questions

IAK and FXO have a correlation of 0.66, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

IAK has higher volatility (6.56%) compared to FXO (4.18%). In terms of maximum drawdown, IAK dropped -77.38% vs FXO's -71.30%.

On 10-year performance, FXO leads with 13.21% vs 13.18% for IAK. On fees, IAK is cheaper at 0.38% per year. On volatility, FXO has been the lower-risk option at 4.18%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, FXO has performed better with a 13.21% return vs 13.18%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

IAK is cheaper with a 0.38% expense ratio, compared with 0.62% for FXO.

IAK has the higher dividend yield at 2.42%, compared with 1.97% for FXO.

IAK tracks Dow Jones U.S. Select Insurance Index, while FXO tracks StrataQuant Financials Index. They also come from different issuers: iShares and First Trust. Their fees differ too: 0.38% for IAK and 0.62% for FXO.

FXO currently has the higher Sharpe Ratio (1.41 vs 1.24), 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.

Portfolio Optimizer

Find the right allocation for IAK and FXO

Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.

Open Portfolio Optimizer