IAK vs. XLF

Last updated Jun 4, 2026

IAK (iShares U.S. Insurance ETF) and XLF (State Street Financial Select Sector SPDR ETF) are both Financials Equities funds - IAK tracks the Dow Jones U.S. Select Insurance Index while XLF tracks the Financial Select Sector Index. Both are passively managed. Over the past 10 years, IAK returned 11.66%/yr vs 12.38%/yr for XLF. Their correlation of 0.84 suggests significant overlap in exposure. IAK charges 0.43%/yr vs 0.08%/yr for XLF.

Performance

IAK vs. XLF - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares U.S. Insurance ETF (IAK) and State Street Financial Select Sector SPDR ETF (XLF). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IAK achieves a -4.56% return, which is significantly higher than XLF's -6.64% return. Over the past 10 years, IAK has underperformed XLF with an annualized return of 11.66%, while XLF has yielded a comparatively higher 12.38% annualized return.

IAK

• 1D: -0.88%
• 1M: -2.27%
• YTD: -4.56%
• 6M: -1.81%
• 1Y: -4.16%
• 3Y*: 16.73%
• 5Y*: 11.50%
• 10Y*: 11.66%

XLF

• 1D: -1.15%
• 1M: -1.38%
• YTD: -6.64%
• 6M: -4.18%
• 1Y: 1.13%
• 3Y*: 17.64%
• 5Y*: 7.61%
• 10Y*: 12.38%

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

IAK vs. XLF - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IAK iShares U.S. Insurance ETF	-4.56%	9.50%	28.25%	11.28%	11.33%	26.84%	-2.86%	25.94%	-11.48%	14.18%
XLF State Street Financial Select Sector SPDR ETF	-6.64%	14.90%	30.56%	12.03%	-10.59%	34.80%	-1.74%	31.88%	-13.06%	22.00%

Correlation

The correlation between IAK and XLF is 0.59, 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	0.59
Correlation (3Y) Calculated over the trailing 3-year period	0.69
Correlation (5Y) Calculated over the trailing 5-year period	0.78
Correlation (10Y) Calculated over the trailing 10-year period	0.82
Correlation (All Time) Calculated using the full available price history since May 8, 2006	0.84

Over the past year, the correlation between IAK and XLF has dropped to 0.59 - well below their long-term average of 0.84, suggesting their price drivers have been diverging.

IAK vs. XLF - Sectors Allocation Comparison

Sectors	IAK	XLF
Financial Services	99.5%	98.0%
Healthcare	0.5%	-
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Industrials	-	0.2%
Real Estate	-	-
Technology	-	1.8%
Utilities	-	-

Return for Risk

IAK vs. XLF — Risk / Return Rank

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

IAK

IAK Risk / Return Rank: 5
IAK Sharpe Ratio Rank: 6
IAK Sortino Ratio Rank: 6
IAK Omega Ratio Rank: 5
IAK Calmar Ratio Rank: 4
IAK Martin Ratio Rank: 3

XLF

XLF Risk / Return Rank: 9
XLF Sharpe Ratio Rank: 9
XLF Sortino Ratio Rank: 9
XLF Omega Ratio Rank: 9
XLF Calmar Ratio Rank: 9
XLF Martin Ratio Rank: 9

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. XLF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Insurance ETF (IAK) and State Street Financial Select Sector SPDR ETF (XLF). 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	XLF	Difference
Sharpe ratio: Return per unit of total volatility	-0.28	0.08	-0.36
Sortino ratio: Return per unit of downside risk	-0.29	0.20	-0.49
Omega ratio: Gain probability vs. loss probability	0.97	1.02	-0.06
Calmar ratio: Return relative to maximum drawdown	-0.55	0.08	-0.62
Martin ratio: Return relative to average drawdown	-1.14	0.20	-1.34
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. XLF - Sharpe Ratio Comparison

The current IAK Sharpe Ratio is -0.28, which is lower than the XLF Sharpe Ratio of 0.08. The chart below compares the historical Sharpe Ratios of IAK and XLF, 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	XLF	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.28	0.08	-0.36
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.64	0.41	+0.23
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.56	0.56	0.00
Sharpe Ratio (All Time) Calculated using the full available price history	0.26	0.20	+0.06

Drawdowns

IAK vs. XLF - Drawdown Comparison

The maximum IAK drawdown since its inception was -77.38%, smaller than the maximum XLF drawdown of -82.69%. Use the drawdown chart below to compare losses from any high point for IAK and XLF.

Drawdown Indicators

	IAK	XLF	Difference
Max Drawdown Largest peak-to-trough decline	-77.38%	-82.69%	+5.31%
Max Drawdown (1Y) Largest decline over 1 year	-7.62%	-14.79%	+7.17%
Max Drawdown (3Y) Largest decline over 3 years	-11.58%	-15.54%	+3.96%
Max Drawdown (5Y) Largest decline over 5 years	-14.76%	-25.81%	+11.05%
Max Drawdown (10Y) Largest decline over 10 years	-44.95%	-42.86%	-2.09%
Current Drawdown Current decline from peak	-5.82%	-9.34%	+3.52%
Average Drawdown Average peak-to-trough decline	-16.13%	-20.03%	+3.90%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.96%	5.66%	-1.70%

Volatility

IAK vs. XLF - Volatility Comparison

iShares U.S. Insurance ETF (IAK) has a higher volatility of 3.82% compared to State Street Financial Select Sector SPDR ETF (XLF) at 3.29%. This indicates that IAK's price experiences larger fluctuations and is considered to be riskier than XLF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IAK	XLF	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.82%	3.29%	+0.53%
Volatility (6M) Calculated over the trailing 6-month period	9.98%	10.94%	-0.96%
Volatility (1Y) Calculated over the trailing 1-year period	14.77%	14.41%	+0.36%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.07%	18.63%	-0.56%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.89%	22.16%	-1.27%

IAK vs. XLF - Expense Ratio Comparison

IAK has a 0.43% expense ratio, which is higher than XLF's 0.08% expense ratio.

Dividends

IAK vs. XLF - Dividend Comparison

IAK's dividend yield for the trailing twelve months is around 2.76%, more than XLF's 1.56% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IAK iShares U.S. Insurance ETF	2.76%	1.69%	1.49%	1.44%	1.69%	2.26%	2.07%	1.84%	2.33%	1.62%	1.68%	1.62%
XLF State Street Financial Select Sector SPDR ETF	1.56%	1.31%	1.42%	1.71%	2.04%	1.63%	2.03%	1.87%	2.08%	1.48%	21.10%	1.95%

Frequently Asked Questions

Can I hold both IAK and XLF in my portfolio?

IAK and XLF have a correlation of 0.59, 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 XLF?

IAK has higher volatility (3.82%) compared to XLF (3.29%). In terms of maximum drawdown, IAK dropped -77.38% vs XLF's -82.69%.

Which ETF is better, IAK or XLF?

On 10-year performance, XLF leads with 12.38% vs 11.66% for IAK. On fees, XLF is cheaper at 0.08% per year. On volatility, XLF has been the lower-risk option at 3.29%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IAK or XLF?

Over the 10-year period, XLF has performed better with a 12.38% return vs 11.66%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IAK or XLF?

XLF is cheaper with a 0.08% expense ratio, compared with 0.43% for IAK.

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

IAK has the higher dividend yield at 2.76%, compared with 1.56% for XLF.

What is the main difference between IAK and XLF?

IAK tracks Dow Jones U.S. Select Insurance Index, while XLF tracks Financial Select Sector Index. They also come from different issuers: iShares and State Street. Their fees differ too: 0.43% for IAK and 0.08% for XLF.

Which has better risk-adjusted returns?

XLF currently has the higher Sharpe Ratio (0.08 vs -0.28), 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.