IAK vs. FXO

Last updated Jul 15, 2026

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 13.15%/yr vs 13.06%/yr for FXO. Their correlation of 0.82 suggests significant overlap in exposure. 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.

Returns By Period

In the year-to-date period, IAK achieves a 8.72% return, which is significantly higher than FXO's 7.81% return. Both investments have delivered pretty close results over the past 10 years, with IAK having a 13.15% annualized return and FXO not far behind at 13.06%.

IAK

• 1D: -1.74%
• 1M: 7.53%
• 6M: 13.19%
• YTD: 8.72%
• 1Y: 15.12%
• 3Y*: 21.39%
• 5Y*: 15.67%
• 10Y*: 13.15%

FXO

• 1D: -0.51%
• 1M: 5.22%
• 6M: 7.78%
• YTD: 7.81%
• 1Y: 14.73%
• 3Y*: 21.04%
• 5Y*: 10.96%
• 10Y*: 13.06%

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

IAK vs. FXO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IAK iShares U.S. Insurance ETF	8.72%	9.50%	28.25%	11.28%	11.33%	26.84%	-2.86%	25.94%	-11.48%	14.18%
FXO First Trust Financials AlphaDEX Fund	7.81%	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 0.67, 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	0.67
Correlation (3Y) Calculated over the trailing 3-year period	0.69
Correlation (5Y) Calculated over the trailing 5-year period	0.77
Correlation (10Y) Calculated over the trailing 10-year period	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 0.67 (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	99.4%	94.5%
Healthcare	0.6%	-
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Industrials	-	-
Real Estate	-	5.0%
Technology	-	0.6%
Utilities	-	-

Return for Risk

IAK vs. FXO — Risk / Return Rank

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

IAK

IAK Risk / Return Rank: 37
IAK Sharpe Ratio Rank: 34
IAK Sortino Ratio Rank: 33
IAK Omega Ratio Rank: 31
IAK Calmar Ratio Rank: 50
IAK Martin Ratio Rank: 39

FXO

FXO Risk / Return Rank: 31
FXO Sharpe Ratio Rank: 32
FXO Sortino Ratio Rank: 30
FXO Omega Ratio Rank: 29
FXO Calmar Ratio Rank: 31
FXO Martin Ratio Rank: 32

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.

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.

	IAK	FXO	Difference
Sharpe ratio: Return per unit of total volatility	0.99	0.94	+0.04
Sortino ratio: Return per unit of downside risk	1.48	1.36	+0.12
Omega ratio: Gain probability vs. loss probability	1.18	1.17	+0.01
Calmar ratio: Return relative to maximum drawdown	1.99	1.26	+0.73
Martin ratio: Return relative to average drawdown	4.89	3.76	+1.13

IAK vs. FXO - Sharpe Ratio Comparison

The current IAK Sharpe Ratio is 0.99, which is comparable to the FXO Sharpe Ratio of 0.94. 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.

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.

Drawdown Indicators

	IAK	FXO	Difference
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	-1.77%	-0.57%	-1.20%
Average Drawdown Average peak-to-trough decline	-16.05%	-13.05%	-3.00%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.11%	3.93%	-0.82%

Volatility

IAK vs. FXO - Volatility Comparison

iShares U.S. Insurance ETF (IAK) has a higher volatility of 5.76% compared to First Trust Financials AlphaDEX Fund (FXO) at 3.79%. 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.

Volatility by Period

	IAK	FXO	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.76%	3.79%	+1.97%
Volatility (6M) Calculated over the trailing 6-month period	11.59%	11.07%	+0.52%
Volatility (1Y) Calculated over the trailing 1-year period	15.44%	15.73%	-0.29%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.07%	21.78%	-3.71%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.85%	24.04%	-3.19%

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 2.46%, more than FXO's 2.04% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FXO First Trust Financials AlphaDEX Fund	2.04%	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	2.46%	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

Can I hold both IAK and FXO in my portfolio?

IAK and FXO have a correlation of 0.67, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IAK or FXO?

IAK has higher volatility (5.76%) compared to FXO (3.79%). In terms of maximum drawdown, IAK dropped -77.38% vs FXO's -71.30%.

Which ETF is better, IAK or FXO?

On 10-year performance, IAK leads with 13.15% vs 13.06% for FXO. On fees, IAK is cheaper at 0.38% per year. On volatility, FXO has been the lower-risk option at 3.79%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IAK or FXO?

Over the 10-year period, IAK has performed better with a 13.15% return vs 13.06%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IAK or FXO?

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

Which ETF pays a higher dividend yield, IAK or FXO?

IAK has the higher dividend yield at 2.46%, compared with 2.04% for FXO.

What is the main difference between IAK and 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.

Which has better risk-adjusted returns?

IAK currently has the higher Sharpe Ratio (0.99 vs 0.94), 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.