IYF vs. FHI

Last updated Jun 4, 2026

IYF (iShares U.S. Financials ETF) is Financials Equities fund tracking the Dow Jones U.S. Financials Index, while FHI (Federated Hermes, Inc.) is a stock. Over the past 10 years, IYF returned 12.56%/yr vs 10.76%/yr for FHI. A 0.63 correlation means they provide meaningful diversification when combined.

Performance

IYF vs. FHI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares U.S. Financials ETF (IYF) and Federated Hermes, Inc. (FHI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IYF achieves a -5.20% return, which is significantly lower than FHI's 8.82% return. Over the past 10 years, IYF has outperformed FHI with an annualized return of 12.56%, while FHI has yielded a comparatively lower 10.76% annualized return.

IYF

• 1D: -1.13%
• 1M: -1.00%
• YTD: -5.20%
• 6M: -3.00%
• 1Y: 5.96%
• 3Y*: 20.58%
• 5Y*: 9.52%
• 10Y*: 12.56%

FHI

• 1D: -0.37%
• 1M: 4.25%
• YTD: 8.82%
• 6M: 11.98%
• 1Y: 35.17%
• 3Y*: 20.93%
• 5Y*: 15.68%
• 10Y*: 10.76%

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

IYF vs. FHI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IYF iShares U.S. Financials ETF	-5.20%	18.25%	31.30%	15.32%	-11.33%	31.60%	-1.00%	31.86%	-9.39%	19.58%
FHI Federated Hermes, Inc.	8.82%	30.45%	29.60%	-3.72%	-0.16%	34.68%	-3.79%	27.07%	-23.34%	32.26%

Correlation

The correlation between IYF and FHI is 0.62, 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	0.62
Correlation (3Y) Calculated over the trailing 3-year period	0.56
Correlation (5Y) Calculated over the trailing 5-year period	0.62
Correlation (10Y) Calculated over the trailing 10-year period	0.62
Correlation (All Time) Calculated using the full available price history since May 30, 2000	0.63

The correlation between IYF and FHI has been stable across timeframes, ranging from 0.56 to 0.63 - a consistent structural relationship.

Return for Risk

IYF vs. FHI — Risk / Return Rank

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

IYF

IYF Risk / Return Rank: 14
IYF Sharpe Ratio Rank: 15
IYF Sortino Ratio Rank: 14
IYF Omega Ratio Rank: 14
IYF Calmar Ratio Rank: 14
IYF Martin Ratio Rank: 14

FHI

FHI Risk / Return Rank: 80
FHI Sharpe Ratio Rank: 82
FHI Sortino Ratio Rank: 77
FHI Omega Ratio Rank: 75
FHI Calmar Ratio Rank: 81
FHI Martin Ratio Rank: 85

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.

IYF vs. FHI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Financials ETF (IYF) and Federated Hermes, Inc. (FHI). 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.

	IYF	FHI	Difference
Sharpe ratio Return per unit of total volatility	0.42	1.58	-1.16
Sortino ratio Return per unit of downside risk	0.65	2.11	-1.46
Omega ratio Gain probability vs. loss probability	1.08	1.27	-0.18
Calmar ratio Return relative to maximum drawdown	0.43	2.81	-2.38
Martin ratio Return relative to average drawdown	1.18	8.74	-7.56
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IYF vs. FHI - Sharpe Ratio Comparison

The current IYF Sharpe Ratio is 0.42, which is lower than the FHI Sharpe Ratio of 1.58. The chart below compares the historical Sharpe Ratios of IYF and FHI, 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

	IYF	FHI	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.42	1.58	-1.16
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.50	0.63	-0.13
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.60	0.33	+0.27
Sharpe Ratio (All Time) Calculated using the full available price history	0.22	0.28	-0.05

Drawdowns

IYF vs. FHI - Drawdown Comparison

The maximum IYF drawdown since its inception was -79.09%, which is greater than FHI's maximum drawdown of -64.89%. Use the drawdown chart below to compare losses from any high point for IYF and FHI.

Drawdown Indicators

	IYF	FHI	Difference
Max Drawdown Largest peak-to-trough decline	-79.09%	-64.89%	-14.20%
Max Drawdown (1Y) Largest decline over 1 year	-13.88%	-12.57%	-1.31%
Max Drawdown (3Y) Largest decline over 3 years	-16.60%	-20.17%	+3.57%
Max Drawdown (5Y) Largest decline over 5 years	-25.06%	-29.61%	+4.55%
Max Drawdown (10Y) Largest decline over 10 years	-42.57%	-64.89%	+22.32%
Current Drawdown Current decline from peak	-8.10%	-3.44%	-4.66%
Average Drawdown Average peak-to-trough decline	-17.61%	-15.75%	-1.86%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.06%	4.04%	+1.02%

Volatility

IYF vs. FHI - Volatility Comparison

The current volatility for iShares U.S. Financials ETF (IYF) is 3.41%, while Federated Hermes, Inc. (FHI) has a volatility of 7.39%. This indicates that IYF experiences smaller price fluctuations and is considered to be less risky than FHI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IYF	FHI	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.41%	7.39%	-3.98%
Volatility (6M) Calculated over the trailing 6-month period	10.80%	17.58%	-6.78%
Volatility (1Y) Calculated over the trailing 1-year period	14.34%	22.38%	-8.04%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.00%	24.89%	-5.89%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.89%	32.43%	-11.54%

Dividends

IYF vs. FHI - Dividend Comparison

IYF's dividend yield for the trailing twelve months is around 1.57%, less than FHI's 2.50% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FHI Federated Hermes, Inc.	2.50%	2.55%	5.38%	3.38%	2.97%	2.87%	7.20%	3.31%	3.99%	2.77%	7.07%	3.49%
IYF iShares U.S. Financials ETF	1.57%	1.32%	1.29%	1.67%	1.86%	1.27%	1.72%	1.64%	1.90%	1.46%	1.67%	1.66%

Frequently Asked Questions

Can I hold both IYF and FHI in my portfolio?

IYF and FHI have a correlation of 0.62, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IYF or FHI?

FHI has higher volatility (7.39%) compared to IYF (3.41%). In terms of maximum drawdown, IYF dropped -79.09% vs FHI's -64.89%.

Which has better risk-adjusted returns?

FHI currently has the higher Sharpe Ratio (1.58 vs 0.42), 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.