IAT vs. FNCL

Last updated Jun 4, 2026

IAT (iShares U.S. Regional Banks ETF) and FNCL (Fidelity MSCI Financials Index ETF) are both Financials Equities funds - IAT tracks the Dow Jones U.S. Select Regional Banks Index while FNCL tracks the MSCI USA IMI Financials Index. Both are passively managed. Over the past 10 years, IAT returned 7.95%/yr vs 12.14%/yr for FNCL. Their correlation of 0.90 suggests significant overlap in exposure. IAT charges 0.42%/yr vs 0.08%/yr for FNCL.

Performance

IAT vs. FNCL - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares U.S. Regional Banks ETF (IAT) and Fidelity MSCI Financials Index ETF (FNCL). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IAT achieves a 2.80% return, which is significantly higher than FNCL's -6.43% return. Over the past 10 years, IAT has underperformed FNCL with an annualized return of 7.95%, while FNCL has yielded a comparatively higher 12.14% annualized return.

IAT

• 1D: -1.71%
• 1M: -1.74%
• YTD: 2.80%
• 6M: 7.09%
• 1Y: 22.99%
• 3Y*: 22.20%
• 5Y*: 1.35%
• 10Y*: 7.95%

FNCL

• 1D: -1.42%
• 1M: -1.74%
• YTD: -6.43%
• 6M: -3.99%
• 1Y: 2.36%
• 3Y*: 18.42%
• 5Y*: 7.79%
• 10Y*: 12.14%

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

IAT vs. FNCL - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IAT iShares U.S. Regional Banks ETF	2.80%	13.05%	24.36%	-8.53%	-20.61%	38.89%	-7.60%	31.38%	-17.45%	10.42%
FNCL Fidelity MSCI Financials Index ETF	-6.43%	14.94%	30.44%	14.10%	-12.28%	34.92%	-2.19%	31.59%	-13.44%	19.99%

Correlation

The correlation between IAT and FNCL is 0.79, 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	0.79
Correlation (3Y) Calculated over the trailing 3-year period	0.83
Correlation (5Y) Calculated over the trailing 5-year period	0.88
Correlation (10Y) Calculated over the trailing 10-year period	0.90
Correlation (All Time) Calculated using the full available price history since Oct 25, 2013	0.90

The correlation between IAT and FNCL shifts across timeframes, from 0.79 (1 year) to 0.90 (10 years), reflecting how their relationship changes across market environments.

IAT vs. FNCL - Sectors Allocation Comparison

Sectors	IAT	FNCL
Financial Services	100.0%	96.9%
Basic Materials	-	-
Communication Services	-	0.0%
Consumer Cyclical	-	0.0%
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	0.0%
Industrials	-	0.2%
Real Estate	-	0.7%
Technology	-	2.1%
Utilities	-	-

Return for Risk

IAT vs. FNCL — Risk / Return Rank

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

IAT

IAT Risk / Return Rank: 27
IAT Sharpe Ratio Rank: 29
IAT Sortino Ratio Rank: 28
IAT Omega Ratio Rank: 29
IAT Calmar Ratio Rank: 27
IAT Martin Ratio Rank: 25

FNCL

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

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.

IAT vs. FNCL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Regional Banks ETF (IAT) and Fidelity MSCI Financials Index ETF (FNCL). 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.

	IAT	FNCL	Difference
Sharpe ratio: Return per unit of total volatility	1.06	0.16	+0.90
Sortino ratio: Return per unit of downside risk	1.52	0.32	+1.21
Omega ratio: Gain probability vs. loss probability	1.20	1.04	+0.16
Calmar ratio: Return relative to maximum drawdown	1.32	0.16	+1.16
Martin ratio: Return relative to average drawdown	3.38	0.43	+2.96
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IAT vs. FNCL - Sharpe Ratio Comparison

The current IAT Sharpe Ratio is 1.06, which is higher than the FNCL Sharpe Ratio of 0.16. The chart below compares the historical Sharpe Ratios of IAT and FNCL, 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

	IAT	FNCL	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.06	0.16	+0.90
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.05	0.41	-0.36
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.26	0.55	-0.29
Sharpe Ratio (All Time) Calculated using the full available price history	0.10	0.53	-0.43

Drawdowns

IAT vs. FNCL - Drawdown Comparison

The maximum IAT drawdown since its inception was -77.22%, which is greater than FNCL's maximum drawdown of -44.38%. Use the drawdown chart below to compare losses from any high point for IAT and FNCL.

Drawdown Indicators

	IAT	FNCL	Difference
Max Drawdown Largest peak-to-trough decline	-77.22%	-44.38%	-32.84%
Max Drawdown (1Y) Largest decline over 1 year	-17.49%	-14.78%	-2.71%
Max Drawdown (3Y) Largest decline over 3 years	-29.29%	-17.29%	-12.00%
Max Drawdown (5Y) Largest decline over 5 years	-55.55%	-25.68%	-29.87%
Max Drawdown (10Y) Largest decline over 10 years	-55.55%	-44.38%	-11.17%
Current Drawdown Current decline from peak	-9.75%	-9.28%	-0.47%
Average Drawdown Average peak-to-trough decline	-26.97%	-6.90%	-20.07%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.81%	5.56%	+1.25%

Volatility

IAT vs. FNCL - Volatility Comparison

iShares U.S. Regional Banks ETF (IAT) has a higher volatility of 6.12% compared to Fidelity MSCI Financials Index ETF (FNCL) at 3.26%. This indicates that IAT's price experiences larger fluctuations and is considered to be riskier than FNCL based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IAT	FNCL	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.12%	3.26%	+2.86%
Volatility (6M) Calculated over the trailing 6-month period	15.74%	11.03%	+4.71%
Volatility (1Y) Calculated over the trailing 1-year period	21.86%	14.76%	+7.10%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	29.03%	19.26%	+9.77%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	30.78%	22.34%	+8.44%

IAT vs. FNCL - Expense Ratio Comparison

IAT has a 0.42% expense ratio, which is higher than FNCL's 0.08% expense ratio.

Dividends

IAT vs. FNCL - Dividend Comparison

IAT's dividend yield for the trailing twelve months is around 2.88%, more than FNCL's 1.70% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FNCL Fidelity MSCI Financials Index ETF	1.70%	1.45%	1.52%	1.91%	2.29%	1.75%	2.26%	2.17%	2.37%	1.60%	1.81%	2.17%
IAT iShares U.S. Regional Banks ETF	2.88%	2.94%	2.95%	3.56%	3.12%	1.88%	2.87%	2.49%	2.48%	1.55%	1.52%	1.78%

Frequently Asked Questions

Can I hold both IAT and FNCL in my portfolio?

IAT and FNCL have a correlation of 0.79, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IAT or FNCL?

IAT has higher volatility (6.12%) compared to FNCL (3.26%). In terms of maximum drawdown, IAT dropped -77.22% vs FNCL's -44.38%.

Which ETF is better, IAT or FNCL?

On 10-year performance, FNCL leads with 12.14% vs 7.95% for IAT. On fees, FNCL is cheaper at 0.08% per year. On volatility, FNCL has been the lower-risk option at 3.26%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IAT or FNCL?

Over the 10-year period, FNCL has performed better with a 12.14% return vs 7.95%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IAT or FNCL?

FNCL is cheaper with a 0.08% expense ratio, compared with 0.42% for IAT.

Which ETF pays a higher dividend yield, IAT or FNCL?

IAT has the higher dividend yield at 2.88%, compared with 1.70% for FNCL.

What is the main difference between IAT and FNCL?

IAT tracks Dow Jones U.S. Select Regional Banks Index, while FNCL tracks MSCI USA IMI Financials Index. They also come from different issuers: iShares and Fidelity. Their fees differ too: 0.42% for IAT and 0.08% for FNCL.

Which has better risk-adjusted returns?

IAT currently has the higher Sharpe Ratio (1.06 vs 0.16), 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.