IAT vs. SPY

Last updated Jun 24, 2026

IAT (iShares U.S. Regional Banks ETF) and SPY (State Street SPDR S&P 500 ETF) are both exchange-traded funds - IAT is a Financials Equities fund tracking the Dow Jones U.S. Select Regional Banks Index, while SPY is a S&P 500 fund tracking the S&P 500 Index. Both are passively managed. Over the past 10 years, IAT returned 9.74%/yr vs 15.53%/yr for SPY. A 0.69 correlation means they provide meaningful diversification when combined. IAT charges 0.42%/yr vs 0.09%/yr for SPY.

Performance

IAT vs. SPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares U.S. Regional Banks ETF (IAT) and State Street SPDR S&P 500 ETF (SPY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IAT achieves a 11.98% return, which is significantly higher than SPY's 8.15% return. Over the past 10 years, IAT has underperformed SPY with an annualized return of 9.74%, while SPY has yielded a comparatively higher 15.53% annualized return.

IAT

• 1D: 1.65%
• 1M: 7.24%
• YTD: 11.98%
• 6M: 9.77%
• 1Y: 31.31%
• 3Y*: 27.52%
• 5Y*: 4.34%
• 10Y*: 9.74%

SPY

• 1D: -1.45%
• 1M: -1.36%
• YTD: 8.15%
• 6M: 7.20%
• 1Y: 23.59%
• 3Y*: 20.68%
• 5Y*: 13.05%
• 10Y*: 15.53%

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

IAT vs. SPY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IAT iShares U.S. Regional Banks ETF	11.98%	13.05%	24.36%	-8.53%	-20.61%	38.89%	-7.60%	31.38%	-17.45%	10.42%
SPY State Street SPDR S&P 500 ETF	8.15%	17.72%	24.89%	26.18%	-18.18%	28.73%	18.33%	31.22%	-4.57%	21.71%

Correlation

The correlation between IAT and SPY is 0.42, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.42
Correlation (3Y) Calculated over the trailing 3-year period	0.51
Correlation (5Y) Calculated over the trailing 5-year period	0.61
Correlation (10Y) Calculated over the trailing 10-year period	0.60
Correlation (All Time) Calculated using the full available price history since May 5, 2006	0.69

Over the past year, the correlation between IAT and SPY has dropped to 0.42 - well below their long-term average of 0.69, suggesting their price drivers have been diverging.

IAT vs. SPY - Sectors Allocation Comparison

Sectors	IAT	SPY
Financial Services	100.0%	11.1%
Basic Materials	-	1.7%
Communication Services	-	10.6%
Consumer Cyclical	-	9.9%
Consumer Defensive	-	4.5%
Energy	-	3.1%
Healthcare	-	8.3%
Industrials	-	7.8%
Real Estate	-	1.8%
Technology	-	39.0%
Utilities	-	2.1%

Return for Risk

IAT vs. SPY — Risk / Return Rank

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

IAT

IAT Risk / Return Rank: 39
IAT Sharpe Ratio Rank: 43
IAT Sortino Ratio Rank: 41
IAT Omega Ratio Rank: 42
IAT Calmar Ratio Rank: 38
IAT Martin Ratio Rank: 33

SPY

SPY Risk / Return Rank: 59
SPY Sharpe Ratio Rank: 58
SPY Sortino Ratio Rank: 56
SPY Omega Ratio Rank: 57
SPY Calmar Ratio Rank: 56
SPY Martin Ratio Rank: 67

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. SPY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Regional Banks ETF (IAT) and State Street SPDR S&P 500 ETF (SPY). 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.

	IAT	SPY	Difference
Sharpe ratio: Return per unit of total volatility	1.43	1.90	-0.47
Sortino ratio: Return per unit of downside risk	1.97	2.58	-0.61
Omega ratio: Gain probability vs. loss probability	1.26	1.34	-0.08
Calmar ratio: Return relative to maximum drawdown	1.80	2.67	-0.87
Martin ratio: Return relative to average drawdown	4.57	11.92	-7.35

IAT vs. SPY - Sharpe Ratio Comparison

The current IAT Sharpe Ratio is 1.43, which is comparable to the SPY Sharpe Ratio of 1.90. The chart below compares the historical Sharpe Ratios of IAT and SPY, 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

IAT vs. SPY - Drawdown Comparison

The maximum IAT drawdown since its inception was -77.22%, which is greater than SPY's maximum drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for IAT and SPY.

Drawdown Indicators

	IAT	SPY	Difference
Max Drawdown Largest peak-to-trough decline	-77.22%	-55.19%	-22.03%
Max Drawdown (1Y) Largest decline over 1 year	-17.49%	-8.88%	-8.61%
Max Drawdown (3Y) Largest decline over 3 years	-29.29%	-18.76%	-10.53%
Max Drawdown (5Y) Largest decline over 5 years	-55.55%	-24.50%	-31.05%
Max Drawdown (10Y) Largest decline over 10 years	-55.55%	-33.72%	-21.83%
Current Drawdown Current decline from peak	-1.69%	-3.17%	+1.48%
Average Drawdown Average peak-to-trough decline	-26.91%	-9.04%	-17.87%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.87%	1.98%	+4.89%

Volatility

IAT vs. SPY - Volatility Comparison

iShares U.S. Regional Banks ETF (IAT) has a higher volatility of 6.82% compared to State Street SPDR S&P 500 ETF (SPY) at 4.87%. This indicates that IAT's price experiences larger fluctuations and is considered to be riskier than SPY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IAT	SPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.82%	4.87%	+1.95%
Volatility (6M) Calculated over the trailing 6-month period	16.15%	9.85%	+6.30%
Volatility (1Y) Calculated over the trailing 1-year period	22.02%	12.50%	+9.52%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	28.96%	17.15%	+11.81%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	30.73%	17.95%	+12.78%

IAT vs. SPY - Expense Ratio Comparison

IAT has a 0.42% expense ratio, which is higher than SPY's 0.09% expense ratio.

Dividends

IAT vs. SPY - Dividend Comparison

IAT's dividend yield for the trailing twelve months is around 2.65%, more than SPY's 1.03% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IAT iShares U.S. Regional Banks ETF	2.65%	2.94%	2.95%	3.56%	3.12%	1.88%	2.87%	2.49%	2.48%	1.55%	1.52%	1.78%
SPY State Street SPDR S&P 500 ETF	1.03%	1.07%	1.21%	1.40%	1.65%	1.20%	1.52%	1.75%	2.04%	1.80%	2.03%	2.06%

Frequently Asked Questions

Can I hold both IAT and SPY in my portfolio?

IAT and SPY have a correlation of 0.42, 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 SPY?

IAT has higher volatility (6.82%) compared to SPY (4.87%). In terms of maximum drawdown, IAT dropped -77.22% vs SPY's -55.19%.

Which ETF is better, IAT or SPY?

On 10-year performance, SPY leads with 15.53% vs 9.74% for IAT. On fees, SPY is cheaper at 0.09% per year. On volatility, SPY has been the lower-risk option at 4.87%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IAT or SPY?

Over the 10-year period, SPY has performed better with a 15.53% return vs 9.74%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IAT or SPY?

SPY is cheaper with a 0.09% expense ratio, compared with 0.42% for IAT.

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

IAT has the higher dividend yield at 2.65%, compared with 1.03% for SPY.

What is the main difference between IAT and SPY?

IAT is categorized as Financials Equities, while SPY is S&P 500. IAT tracks Dow Jones U.S. Select Regional Banks Index, while SPY tracks S&P 500 Index. They also come from different issuers: iShares and State Street. Their fees differ too: 0.42% for IAT and 0.09% for SPY.

Which has better risk-adjusted returns?

SPY currently has the higher Sharpe Ratio (1.90 vs 1.43), 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.