IAT vs. FTXO

Last updated Jun 4, 2026

IAT (iShares U.S. Regional Banks ETF) and FTXO (First Trust Nasdaq Bank ETF) are both Financials Equities funds - IAT tracks the Dow Jones U.S. Select Regional Banks Index while FTXO tracks the NASDAQ US Banks Index. Both are passively managed. Over the past 5 years, IAT returned 1.35%/yr vs 5.35%/yr for FTXO. With a 0.98 correlation, they move nearly in lockstep. IAT charges 0.42%/yr vs 0.60%/yr for FTXO.

Performance

IAT vs. FTXO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares U.S. Regional Banks ETF (IAT) and First Trust Nasdaq Bank ETF (FTXO). 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 FTXO's 0.81% 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%

FTXO

• 1D: -1.34%
• 1M: -0.87%
• YTD: 0.81%
• 6M: 4.64%
• 1Y: 23.41%
• 3Y*: 24.18%
• 5Y*: 5.35%
• 10Y*: —

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

IAT vs. FTXO - 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%
FTXO First Trust Nasdaq Bank ETF	0.81%	21.32%	29.05%	0.05%	-17.93%	40.53%	-12.53%	30.11%	-21.79%	14.25%

Correlation

The correlation between IAT and FTXO is 0.96 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.96
Correlation (3Y) Calculated over the trailing 3-year period	0.97
Correlation (5Y) Calculated over the trailing 5-year period	0.98
Correlation (All Time) Calculated using the full available price history since Oct 10, 2016	0.98

The correlation between IAT and FTXO has been stable across timeframes, ranging from 0.96 to 0.98 - a consistent structural relationship.

IAT vs. FTXO - Sectors Allocation Comparison

Sectors	IAT	FTXO
Financial Services	100.0%	100.0%
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	-
Industrials	-	-
Real Estate	-	-
Technology	-	0.4%
Utilities	-	-

Return for Risk

IAT vs. FTXO — 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

FTXO

FTXO Risk / Return Rank: 30
FTXO Sharpe Ratio Rank: 31
FTXO Sortino Ratio Rank: 30
FTXO Omega Ratio Rank: 30
FTXO Calmar Ratio Rank: 29
FTXO Martin Ratio Rank: 28

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. FTXO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Regional Banks ETF (IAT) and First Trust Nasdaq Bank ETF (FTXO). 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	FTXO	Difference
Sharpe ratio: Return per unit of total volatility	1.06	1.13	-0.07
Sortino ratio: Return per unit of downside risk	1.52	1.62	-0.09
Omega ratio: Gain probability vs. loss probability	1.20	1.21	-0.01
Calmar ratio: Return relative to maximum drawdown	1.32	1.41	-0.09
Martin ratio: Return relative to average drawdown	3.38	3.90	-0.52
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. FTXO - Sharpe Ratio Comparison

The current IAT Sharpe Ratio is 1.06, which is comparable to the FTXO Sharpe Ratio of 1.13. The chart below compares the historical Sharpe Ratios of IAT and FTXO, 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	FTXO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.06	1.13	-0.07
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.05	0.20	-0.15
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.26	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.10	0.31	-0.21

Drawdowns

IAT vs. FTXO - Drawdown Comparison

The maximum IAT drawdown since its inception was -77.22%, which is greater than FTXO's maximum drawdown of -55.26%. Use the drawdown chart below to compare losses from any high point for IAT and FTXO.

Drawdown Indicators

	IAT	FTXO	Difference
Max Drawdown Largest peak-to-trough decline	-77.22%	-55.26%	-21.96%
Max Drawdown (1Y) Largest decline over 1 year	-17.49%	-16.69%	-0.80%
Max Drawdown (3Y) Largest decline over 3 years	-29.29%	-25.84%	-3.45%
Max Drawdown (5Y) Largest decline over 5 years	-55.55%	-46.55%	-9.00%
Max Drawdown (10Y) Largest decline over 10 years	-55.55%	—	—
Current Drawdown Current decline from peak	-9.75%	-8.10%	-1.65%
Average Drawdown Average peak-to-trough decline	-26.97%	-15.88%	-11.09%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.81%	6.01%	+0.80%

Volatility

IAT vs. FTXO - Volatility Comparison

iShares U.S. Regional Banks ETF (IAT) has a higher volatility of 6.12% compared to First Trust Nasdaq Bank ETF (FTXO) at 5.69%. This indicates that IAT's price experiences larger fluctuations and is considered to be riskier than FTXO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IAT	FTXO	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.12%	5.69%	+0.43%
Volatility (6M) Calculated over the trailing 6-month period	15.74%	15.46%	+0.28%
Volatility (1Y) Calculated over the trailing 1-year period	21.86%	20.80%	+1.06%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	29.03%	27.01%	+2.02%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	30.78%	29.98%	+0.80%

IAT vs. FTXO - Expense Ratio Comparison

IAT has a 0.42% expense ratio, which is lower than FTXO's 0.60% expense ratio.

Dividends

IAT vs. FTXO - Dividend Comparison

IAT's dividend yield for the trailing twelve months is around 2.88%, more than FTXO's 1.78% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FTXO First Trust Nasdaq Bank ETF	1.78%	1.92%	2.18%	3.20%	2.94%	1.64%	2.74%	2.53%	3.51%	1.09%	0.16%	0.00%
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 FTXO in my portfolio?

With a correlation of 0.96, IAT and FTXO move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, IAT or FTXO?

IAT has higher volatility (6.12%) compared to FTXO (5.69%). In terms of maximum drawdown, IAT dropped -77.22% vs FTXO's -55.26%.

Which ETF is better, IAT or FTXO?

On 5-year performance, FTXO leads with 5.35% vs 1.35% for IAT. On fees, IAT is cheaper at 0.42% per year. On volatility, FTXO has been the lower-risk option at 5.69%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IAT or FTXO?

Over the 5-year period, FTXO has performed better with a 5.35% return vs 1.35%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IAT or FTXO?

IAT is cheaper with a 0.42% expense ratio, compared with 0.60% for FTXO.

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

IAT has the higher dividend yield at 2.88%, compared with 1.78% for FTXO.

What is the main difference between IAT and FTXO?

IAT tracks Dow Jones U.S. Select Regional Banks Index, while FTXO tracks NASDAQ US Banks Index. They also come from different issuers: iShares and First Trust. Their fees differ too: 0.42% for IAT and 0.60% for FTXO.

Which has better risk-adjusted returns?

FTXO currently has the higher Sharpe Ratio (1.13 vs 1.06), 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.