IAK vs. XAR

Last updated Jun 7, 2026

IAK (iShares U.S. Insurance ETF) and XAR (SPDR S&P Aerospace & Defense ETF) are both exchange-traded funds - IAK is a Financials Equities fund tracking the Dow Jones U.S. Select Insurance Index, while XAR is a Aerospace & Defense fund tracking the S&P Aerospace & Defense Select Industry Index. Both are passively managed. Over the past 10 years, IAK returned 12.09%/yr vs 17.78%/yr for XAR. A 0.58 correlation means they provide meaningful diversification when combined. IAK charges 0.43%/yr vs 0.35%/yr for XAR.

Performance

IAK vs. XAR - 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 Aerospace & Defense ETF (XAR). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IAK achieves a -0.36% return, which is significantly lower than XAR's 13.04% return. Over the past 10 years, IAK has underperformed XAR with an annualized return of 12.09%, while XAR has yielded a comparatively higher 17.78% annualized return.

IAK

• 1D: 3.19%
• 1M: 2.61%
• YTD: -0.36%
• 6M: 3.38%
• 1Y: 0.77%
• 3Y*: 18.24%
• 5Y*: 12.47%
• 10Y*: 12.09%

XAR

• 1D: -2.80%
• 1M: 2.70%
• YTD: 13.04%
• 6M: 18.20%
• 1Y: 37.96%
• 3Y*: 33.64%
• 5Y*: 16.19%
• 10Y*: 17.78%

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

IAK vs. XAR - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IAK iShares U.S. Insurance ETF	-0.36%	9.50%	28.25%	11.28%	11.33%	26.84%	-2.86%	25.94%	-11.48%	14.18%
XAR SPDR S&P Aerospace & Defense ETF	13.04%	46.15%	23.32%	23.79%	-5.02%	2.31%	6.18%	39.33%	-4.58%	33.00%

Correlation

The correlation between IAK and XAR is 0.09, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.09
Correlation (3Y) Calculated over the trailing 3-year period	0.30
Correlation (5Y) Calculated over the trailing 5-year period	0.48
Correlation (10Y) Calculated over the trailing 10-year period	0.56
Correlation (All Time) Calculated using the full available price history since Sep 30, 2011	0.58

Over the past year, the correlation between IAK and XAR has dropped to 0.09 - well below their long-term average of 0.58, suggesting their price drivers have been diverging.

IAK vs. XAR - Sectors Allocation Comparison

Sectors	IAK	XAR
Financial Services	99.5%	-
Healthcare	0.5%	-
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Industrials	-	99.1%
Real Estate	-	-
Technology	-	0.8%
Utilities	-	-

Return for Risk

IAK vs. XAR — Risk / Return Rank

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

IAK

IAK Risk / Return Rank: 11
IAK Sharpe Ratio Rank: 11
IAK Sortino Ratio Rank: 10
IAK Omega Ratio Rank: 10
IAK Calmar Ratio Rank: 12
IAK Martin Ratio Rank: 11

XAR

XAR Risk / Return Rank: 44
XAR Sharpe Ratio Rank: 45
XAR Sortino Ratio Rank: 45
XAR Omega Ratio Rank: 39
XAR Calmar Ratio Rank: 49
XAR Martin Ratio Rank: 43

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. XAR - 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 Aerospace & Defense ETF (XAR). 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.

	IAK	XAR	Difference
Sharpe ratio: Return per unit of total volatility	0.11	1.51	-1.40
Sortino ratio: Return per unit of downside risk	0.26	2.16	-1.90
Omega ratio: Gain probability vs. loss probability	1.03	1.25	-0.22
Calmar ratio: Return relative to maximum drawdown	0.22	2.37	-2.15
Martin ratio: Return relative to average drawdown	0.46	6.72	-6.26
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IAK vs. XAR - Sharpe Ratio Comparison

The current IAK Sharpe Ratio is 0.11, which is lower than the XAR Sharpe Ratio of 1.51. The chart below compares the historical Sharpe Ratios of IAK and XAR, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	IAK	XAR	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.11	1.51	-1.40
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.69	0.69	0.00
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.58	0.72	-0.14
Sharpe Ratio (All Time) Calculated using the full available price history	0.27	0.84	-0.58

Drawdowns

IAK vs. XAR - Drawdown Comparison

The maximum IAK drawdown since its inception was -77.38%, which is greater than XAR's maximum drawdown of -46.37%. Use the drawdown chart below to compare losses from any high point for IAK and XAR.

Drawdown Indicators

	IAK	XAR	Difference
Max Drawdown Largest peak-to-trough decline	-77.38%	-46.37%	-31.01%
Max Drawdown (1Y) Largest decline over 1 year	-7.62%	-17.22%	+9.60%
Max Drawdown (3Y) Largest decline over 3 years	-11.58%	-19.73%	+8.15%
Max Drawdown (5Y) Largest decline over 5 years	-14.76%	-32.40%	+17.64%
Max Drawdown (10Y) Largest decline over 10 years	-44.95%	-46.37%	+1.42%
Current Drawdown Current decline from peak	-1.68%	-6.85%	+5.17%
Average Drawdown Average peak-to-trough decline	-16.13%	-6.78%	-9.35%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.67%	6.07%	-2.40%

Volatility

IAK vs. XAR - Volatility Comparison

The current volatility for iShares U.S. Insurance ETF (IAK) is 5.13%, while SPDR S&P Aerospace & Defense ETF (XAR) has a volatility of 9.26%. This indicates that IAK experiences smaller price fluctuations and is considered to be less risky than XAR based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IAK	XAR	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.13%	9.26%	-4.13%
Volatility (6M) Calculated over the trailing 6-month period	10.53%	22.69%	-12.16%
Volatility (1Y) Calculated over the trailing 1-year period	15.09%	27.06%	-11.97%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.13%	23.46%	-5.33%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.91%	24.64%	-3.73%

IAK vs. XAR - Expense Ratio Comparison

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

Dividends

IAK vs. XAR - Dividend Comparison

IAK's dividend yield for the trailing twelve months is around 2.64%, more than XAR's 0.32% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IAK iShares U.S. Insurance ETF	2.64%	1.69%	1.49%	1.44%	1.69%	2.26%	2.07%	1.84%	2.33%	1.62%	1.68%	1.62%
XAR SPDR S&P Aerospace & Defense ETF	0.32%	0.40%	0.66%	0.54%	0.50%	0.83%	0.63%	0.75%	1.19%	0.76%	1.09%	2.31%

Frequently Asked Questions

Can I hold both IAK and XAR in my portfolio?

IAK and XAR have a correlation of 0.09, 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 XAR?

XAR has higher volatility (9.26%) compared to IAK (5.13%). In terms of maximum drawdown, IAK dropped -77.38% vs XAR's -46.37%.

Which ETF is better, IAK or XAR?

On 10-year performance, XAR leads with 17.78% vs 12.09% for IAK. On fees, XAR is cheaper at 0.35% per year. On volatility, IAK has been the lower-risk option at 5.13%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IAK or XAR?

Over the 10-year period, XAR has performed better with a 17.78% return vs 12.09%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IAK or XAR?

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

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

IAK has the higher dividend yield at 2.64%, compared with 0.32% for XAR.

What is the main difference between IAK and XAR?

IAK is categorized as Financials Equities, while XAR is Aerospace & Defense. IAK tracks Dow Jones U.S. Select Insurance Index, while XAR tracks S&P Aerospace & Defense 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 XAR.

Which has better risk-adjusted returns?

XAR currently has the higher Sharpe Ratio (1.51 vs 0.11), 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.