IAK vs. KCE

Last updated Jun 13, 2026

IAK (iShares U.S. Insurance ETF) and KCE (SPDR S&P Capital Markets ETF) are both Financials Equities funds - IAK tracks the Dow Jones U.S. Select Insurance Index while KCE tracks the S&P Capital Markets Select Industry Index. Both are passively managed. Over the past 10 years, IAK returned 12.67%/yr vs 17.65%/yr for KCE. A 0.75 correlation means they provide meaningful diversification when combined. IAK charges 0.43%/yr vs 0.35%/yr for KCE.

Performance

IAK vs. KCE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares U.S. Insurance ETF (IAK) and SPDR S&P Capital Markets ETF (KCE). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IAK achieves a 1.11% return, which is significantly lower than KCE's 3.66% return. Over the past 10 years, IAK has underperformed KCE with an annualized return of 12.67%, while KCE has yielded a comparatively higher 17.65% annualized return.

IAK

• 1D: 0.68%
• 1M: 4.20%
• YTD: 1.11%
• 6M: 0.88%
• 1Y: 4.33%
• 3Y*: 18.27%
• 5Y*: 13.37%
• 10Y*: 12.67%

KCE

• 1D: 1.60%
• 1M: 1.26%
• YTD: 3.66%
• 6M: 2.73%
• 1Y: 14.27%
• 3Y*: 24.58%
• 5Y*: 12.87%
• 10Y*: 17.65%

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

IAK vs. KCE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IAK iShares U.S. Insurance ETF	1.11%	9.50%	28.25%	11.28%	11.33%	26.84%	-2.86%	25.94%	-11.48%	14.18%
KCE SPDR S&P Capital Markets ETF	3.66%	10.76%	37.51%	32.04%	-22.14%	40.05%	30.82%	27.13%	-15.63%	32.01%

Correlation

The correlation between IAK and KCE is 0.32, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.32
Correlation (3Y) Calculated over the trailing 3-year period	0.44
Correlation (5Y) Calculated over the trailing 5-year period	0.58
Correlation (10Y) Calculated over the trailing 10-year period	0.67
Correlation (All Time) Calculated using the full available price history since May 5, 2006	0.75

Over the past year, the correlation between IAK and KCE has dropped to 0.32 - well below their long-term average of 0.75, suggesting their price drivers have been diverging.

IAK vs. KCE - Sectors Allocation Comparison

Sectors	IAK	KCE
Financial Services	99.5%	98.5%
Healthcare	0.5%	-
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Industrials	-	-
Real Estate	-	-
Technology	-	1.5%
Utilities	-	-

Return for Risk

IAK vs. KCE — Risk / Return Rank

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

IAK

IAK Risk / Return Rank: 15
IAK Sharpe Ratio Rank: 14
IAK Sortino Ratio Rank: 13
IAK Omega Ratio Rank: 13
IAK Calmar Ratio Rank: 17
IAK Martin Ratio Rank: 16

KCE

KCE Risk / Return Rank: 22
KCE Sharpe Ratio Rank: 23
KCE Sortino Ratio Rank: 22
KCE Omega Ratio Rank: 22
KCE Calmar Ratio Rank: 21
KCE Martin Ratio Rank: 20

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. KCE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Insurance ETF (IAK) and SPDR S&P Capital Markets ETF (KCE). 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	KCE	Difference
Sharpe ratio: Return per unit of total volatility	0.29	0.71	-0.42
Sortino ratio: Return per unit of downside risk	0.50	1.08	-0.58
Omega ratio: Gain probability vs. loss probability	1.06	1.13	-0.07
Calmar ratio: Return relative to maximum drawdown	0.57	0.82	-0.25
Martin ratio: Return relative to average drawdown	1.27	2.14	-0.86

IAK vs. KCE - Sharpe Ratio Comparison

The current IAK Sharpe Ratio is 0.29, which is lower than the KCE Sharpe Ratio of 0.71. The chart below compares the historical Sharpe Ratios of IAK and KCE, 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. KCE - Drawdown Comparison

The maximum IAK drawdown since its inception was -77.38%, roughly equal to the maximum KCE drawdown of -74.00%. Use the drawdown chart below to compare losses from any high point for IAK and KCE.

Drawdown Indicators

	IAK	KCE	Difference
Max Drawdown Largest peak-to-trough decline	-77.38%	-74.00%	-3.38%
Max Drawdown (1Y) Largest decline over 1 year	-7.62%	-17.44%	+9.82%
Max Drawdown (3Y) Largest decline over 3 years	-11.58%	-26.31%	+14.73%
Max Drawdown (5Y) Largest decline over 5 years	-14.76%	-34.45%	+19.69%
Max Drawdown (10Y) Largest decline over 10 years	-44.95%	-40.78%	-4.17%
Current Drawdown Current decline from peak	-0.23%	-3.75%	+3.52%
Average Drawdown Average peak-to-trough decline	-16.11%	-22.78%	+6.67%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.41%	6.70%	-3.29%

Volatility

IAK vs. KCE - Volatility Comparison

The current volatility for iShares U.S. Insurance ETF (IAK) is 5.49%, while SPDR S&P Capital Markets ETF (KCE) has a volatility of 6.04%. This indicates that IAK experiences smaller price fluctuations and is considered to be less risky than KCE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IAK	KCE	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.49%	6.04%	-0.55%
Volatility (6M) Calculated over the trailing 6-month period	10.75%	15.31%	-4.56%
Volatility (1Y) Calculated over the trailing 1-year period	15.10%	20.12%	-5.02%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.14%	23.08%	-4.94%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.92%	23.10%	-2.18%

IAK vs. KCE - Expense Ratio Comparison

IAK has a 0.43% expense ratio, which is higher than KCE's 0.35% expense ratio.

Dividends

IAK vs. KCE - Dividend Comparison

IAK's dividend yield for the trailing twelve months is around 2.60%, more than KCE's 1.67% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IAK iShares U.S. Insurance ETF	2.60%	1.69%	1.49%	1.44%	1.69%	2.26%	2.07%	1.84%	2.33%	1.62%	1.68%	1.62%
KCE SPDR S&P Capital Markets ETF	1.67%	1.63%	1.56%	1.82%	2.42%	1.53%	2.20%	2.32%	2.67%	1.95%	2.30%	2.43%

Frequently Asked Questions

Can I hold both IAK and KCE in my portfolio?

IAK and KCE have a correlation of 0.32, 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 KCE?

KCE has higher volatility (6.04%) compared to IAK (5.49%). In terms of maximum drawdown, IAK dropped -77.38% vs KCE's -74.00%.

Which ETF is better, IAK or KCE?

On 10-year performance, KCE leads with 17.65% vs 12.67% for IAK. On fees, KCE is cheaper at 0.35% per year. On volatility, IAK has been the lower-risk option at 5.49%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IAK or KCE?

Over the 10-year period, KCE has performed better with a 17.65% return vs 12.67%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IAK or KCE?

KCE is cheaper with a 0.35% expense ratio, compared with 0.43% for IAK.

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

IAK has the higher dividend yield at 2.60%, compared with 1.67% for KCE.

What is the main difference between IAK and KCE?

IAK tracks Dow Jones U.S. Select Insurance Index, while KCE tracks S&P Capital Markets Select Industry Index. They also come from different issuers: iShares and State Street. Their fees differ too: 0.43% for IAK and 0.35% for KCE.

Which has better risk-adjusted returns?

KCE currently has the higher Sharpe Ratio (0.71 vs 0.29), 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.