IYC vs. CARZ

Last updated Jun 24, 2026

IYC (iShares U.S. Consumer Discretionary ETF) and CARZ (First Trust NASDAQ Global Auto Index Fund) are both Consumer Discretionary Equities funds - IYC tracks the Dow Jones U.S. Consumer Services Index while CARZ tracks the NASDAQ OMX Global Automobile (TR). Both are passively managed. Over the past 10 years, IYC returned 11.80%/yr vs 16.27%/yr for CARZ. A 0.66 correlation means they provide meaningful diversification when combined. IYC charges 0.38%/yr vs 0.70%/yr for CARZ.

Performance

IYC vs. CARZ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares U.S. Consumer Discretionary ETF (IYC) and First Trust NASDAQ Global Auto Index Fund (CARZ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IYC achieves a -3.42% return, which is significantly lower than CARZ's 45.91% return. Over the past 10 years, IYC has underperformed CARZ with an annualized return of 11.80%, while CARZ has yielded a comparatively higher 16.27% annualized return.

IYC

• 1D: -0.27%
• 1M: -2.64%
• YTD: -3.42%
• 6M: -4.50%
• 1Y: 2.57%
• 3Y*: 13.50%
• 5Y*: 5.77%
• 10Y*: 11.80%

CARZ

• 1D: -6.26%
• 1M: -0.36%
• YTD: 45.91%
• 6M: 45.04%
• 1Y: 96.22%
• 3Y*: 30.25%
• 5Y*: 14.87%
• 10Y*: 16.27%

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

IYC vs. CARZ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IYC iShares U.S. Consumer Discretionary ETF	-3.42%	7.85%	27.54%	34.03%	-31.78%	19.65%	24.58%	27.36%	1.76%	19.87%
CARZ First Trust NASDAQ Global Auto Index Fund	45.91%	37.18%	3.26%	42.47%	-31.25%	18.09%	54.66%	11.39%	-23.91%	25.47%

Correlation

The correlation between IYC and CARZ is 0.55, 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	0.55
Correlation (3Y) Calculated over the trailing 3-year period	0.67
Correlation (5Y) Calculated over the trailing 5-year period	0.72
Correlation (10Y) Calculated over the trailing 10-year period	0.67
Correlation (All Time) Calculated using the full available price history since May 10, 2011	0.66

The correlation between IYC and CARZ shifts across timeframes, from 0.55 (1 year) to 0.72 (5 years), reflecting how their relationship changes across market environments.

IYC vs. CARZ - Sectors Allocation Comparison

Sectors	IYC	CARZ
Consumer Cyclical	67.8%	21.5%
Communication Services	13.4%	1.9%
Consumer Defensive	11.2%	-
Technology	3.8%	34.6%
Industrials	3.6%	7.5%
Energy	0.1%	-
Basic Materials	-	6.5%
Financial Services	-	-
Healthcare	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

IYC vs. CARZ — Risk / Return Rank

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

IYC

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

CARZ

CARZ Risk / Return Rank: 92
CARZ Sharpe Ratio Rank: 94
CARZ Sortino Ratio Rank: 88
CARZ Omega Ratio Rank: 89
CARZ Calmar Ratio Rank: 94
CARZ Martin Ratio Rank: 94

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.

IYC vs. CARZ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Consumer Discretionary ETF (IYC) and First Trust NASDAQ Global Auto Index Fund (CARZ). 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.

	IYC	CARZ	Difference
Sharpe ratio: Return per unit of total volatility	0.18	3.29	-3.11
Sortino ratio: Return per unit of downside risk	0.36	3.72	-3.37
Omega ratio: Gain probability vs. loss probability	1.04	1.53	-0.49
Calmar ratio: Return relative to maximum drawdown	0.22	6.70	-6.48
Martin ratio: Return relative to average drawdown	0.62	24.83	-24.22

IYC vs. CARZ - Sharpe Ratio Comparison

The current IYC Sharpe Ratio is 0.18, which is lower than the CARZ Sharpe Ratio of 3.29. The chart below compares the historical Sharpe Ratios of IYC and CARZ, 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

IYC vs. CARZ - Drawdown Comparison

The maximum IYC drawdown since its inception was -53.10%, roughly equal to the maximum CARZ drawdown of -51.20%. Use the drawdown chart below to compare losses from any high point for IYC and CARZ.

Drawdown Indicators

	IYC	CARZ	Difference
Max Drawdown Largest peak-to-trough decline	-53.10%	-51.20%	-1.90%
Max Drawdown (1Y) Largest decline over 1 year	-11.97%	-14.44%	+2.47%
Max Drawdown (3Y) Largest decline over 3 years	-21.62%	-27.84%	+6.22%
Max Drawdown (5Y) Largest decline over 5 years	-35.90%	-40.30%	+4.40%
Max Drawdown (10Y) Largest decline over 10 years	-35.90%	-51.20%	+15.30%
Current Drawdown Current decline from peak	-7.07%	-7.71%	+0.64%
Average Drawdown Average peak-to-trough decline	-9.94%	-12.87%	+2.93%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.17%	3.89%	+0.28%

Volatility

IYC vs. CARZ - Volatility Comparison

The current volatility for iShares U.S. Consumer Discretionary ETF (IYC) is 4.93%, while First Trust NASDAQ Global Auto Index Fund (CARZ) has a volatility of 16.09%. This indicates that IYC experiences smaller price fluctuations and is considered to be less risky than CARZ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IYC	CARZ	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.93%	16.09%	-11.16%
Volatility (6M) Calculated over the trailing 6-month period	11.18%	24.90%	-13.72%
Volatility (1Y) Calculated over the trailing 1-year period	14.65%	29.42%	-14.77%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.80%	28.81%	-8.01%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.91%	26.54%	-6.63%

IYC vs. CARZ - Expense Ratio Comparison

IYC has a 0.38% expense ratio, which is lower than CARZ's 0.70% expense ratio.

Dividends

IYC vs. CARZ - Dividend Comparison

IYC's dividend yield for the trailing twelve months is around 0.52%, less than CARZ's 1.46% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
CARZ First Trust NASDAQ Global Auto Index Fund	1.46%	2.13%	1.17%	1.40%	1.59%	2.25%	0.63%	3.23%	2.85%	2.11%	2.47%	1.64%
IYC iShares U.S. Consumer Discretionary ETF	0.52%	0.51%	0.47%	0.68%	0.68%	0.39%	0.65%	0.89%	0.90%	0.92%	1.10%	1.03%

Frequently Asked Questions

Can I hold both IYC and CARZ in my portfolio?

IYC and CARZ have a correlation of 0.55, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IYC or CARZ?

CARZ has higher volatility (16.09%) compared to IYC (4.93%). In terms of maximum drawdown, IYC dropped -53.10% vs CARZ's -51.20%.

Which ETF is better, IYC or CARZ?

On 10-year performance, CARZ leads with 16.27% vs 11.80% for IYC. On fees, IYC is cheaper at 0.38% per year. On volatility, IYC has been the lower-risk option at 4.93%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IYC or CARZ?

Over the 10-year period, CARZ has performed better with a 16.27% return vs 11.80%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IYC or CARZ?

IYC is cheaper with a 0.38% expense ratio, compared with 0.70% for CARZ.

Which ETF pays a higher dividend yield, IYC or CARZ?

CARZ has the higher dividend yield at 1.46%, compared with 0.52% for IYC.

What is the main difference between IYC and CARZ?

IYC tracks Dow Jones U.S. Consumer Services Index, while CARZ tracks NASDAQ OMX Global Automobile (TR). They also come from different issuers: iShares and First Trust. Their fees differ too: 0.38% for IYC and 0.70% for CARZ.

Which has better risk-adjusted returns?

CARZ currently has the higher Sharpe Ratio (3.29 vs 0.18), 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.