IYF vs. IYG
IYF (iShares U.S. Financials ETF) and IYG (iShares U.S. Financial Services ETF) are both Financials Equities funds from iShares - IYF tracks the Dow Jones U.S. Financials Index while IYG tracks the Dow Jones U.S. Financial Services TR. Both are passively managed. Over the past 10 years, IYF returned 13.43%/yr vs 14.52%/yr for IYG. With a 0.96 correlation, they move nearly in lockstep. Both charge a 0.42% expense ratio.
Performance
IYF vs. IYG - Performance Comparison
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Returns By Period
In the year-to-date period, IYF achieves a -0.24% return, which is significantly higher than IYG's -1.15% return. Over the past 10 years, IYF has underperformed IYG with an annualized return of 13.43%, while IYG has yielded a comparatively higher 14.52% annualized return.
IYF
- 1D
- -0.99%
- 1M
- 4.08%
- YTD
- -0.24%
- 6M
- -0.08%
- 1Y
- 12.21%
- 3Y*
- 21.52%
- 5Y*
- 11.98%
- 10Y*
- 13.43%
IYG
- 1D
- -0.89%
- 1M
- 4.46%
- YTD
- -1.15%
- 6M
- -1.02%
- 1Y
- 12.63%
- 3Y*
- 21.70%
- 5Y*
- 10.60%
- 10Y*
- 14.52%
IYF vs. IYG - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
IYF iShares U.S. Financials ETF | -0.24% | 18.25% | 31.30% | 15.32% | -11.33% | 31.60% | -1.00% | 31.86% | -9.39% | 19.58% |
IYG iShares U.S. Financial Services ETF | -1.15% | 19.85% | 31.94% | 16.07% | -16.76% | 30.36% | 0.99% | 37.62% | -12.56% | 24.47% |
Correlation
The correlation between IYF and IYG is 0.97 - 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 | 0.97 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.97 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.97 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.97 |
Correlation (All Time) Calculated using the full available price history since Jun 21, 2000 | 0.96 |
The correlation between IYF and IYG has been stable across timeframes, ranging from 0.96 to 0.97 - a consistent structural relationship.
IYF vs. IYG - Sectors Allocation Comparison
Sectors
IYF
IYG
Financial Services
Real Estate
-
Technology
-
Basic Materials
-
-
Communication Services
-
-
Consumer Cyclical
-
-
Consumer Defensive
-
-
Energy
-
-
Healthcare
-
-
Industrials
-
-
Utilities
-
-
Financial Services
IYF
IYG
Real Estate
IYF
IYG
-
Technology
IYF
IYG
-
Basic Materials
IYF
-
IYG
-
Communication Services
IYF
-
IYG
-
Consumer Cyclical
IYF
-
IYG
-
Consumer Defensive
IYF
-
IYG
-
Energy
IYF
-
IYG
-
Healthcare
IYF
-
IYG
-
Industrials
IYF
-
IYG
-
Utilities
IYF
-
IYG
-
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Return for Risk
IYF vs. IYG — Risk / Return Rank
IYF
IYG
IYF vs. IYG - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Financials ETF (IYF) and iShares U.S. Financial Services ETF (IYG). 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.
| IYF | IYG | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.03 | ||
| Sortino ratioReturn per unit of downside risk | +0.04 | ||
| Omega ratioGain probability vs. loss probability | 1.15 | 1.15 | 0.00 |
| Calmar ratioReturn relative to maximum drawdown | 0.88 | 0.80 | +0.09 |
| Martin ratioReturn relative to average drawdown | 2.38 | 2.04 | +0.35 |
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Drawdowns
IYF vs. IYG - Drawdown Comparison
The maximum IYF drawdown since its inception was -79.09%, roughly equal to the maximum IYG drawdown of -81.84%. Use the drawdown chart below to compare losses from any high point for IYF and IYG.
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Drawdown Indicators
| IYF | IYG | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -79.09% | -81.84% | +2.75% |
Max Drawdown (1Y)Largest decline over 1 year | -13.88% | -15.90% | +2.02% |
Max Drawdown (3Y)Largest decline over 3 years | -16.60% | -18.54% | +1.94% |
Max Drawdown (5Y)Largest decline over 5 years | -25.06% | -29.62% | +4.56% |
Max Drawdown (10Y)Largest decline over 10 years | -42.57% | -44.32% | +1.75% |
Current DrawdownCurrent decline from peak | -3.29% | -4.60% | +1.31% |
Average DrawdownAverage peak-to-trough decline | -17.59% | -20.72% | +3.13% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 5.14% | 6.22% | -1.08% |
Volatility
IYF vs. IYG - Volatility Comparison
The current volatility for iShares U.S. Financials ETF (IYF) is 4.21%, while iShares U.S. Financial Services ETF (IYG) has a volatility of 4.51%. This indicates that IYF experiences smaller price fluctuations and is considered to be less risky than IYG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| IYF | IYG | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.21% | 4.51% | -0.30% |
Volatility (6M)Calculated over the trailing 6-month period | 11.16% | 12.14% | -0.98% |
Volatility (1Y)Calculated over the trailing 1-year period | 14.55% | 15.60% | -1.05% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 19.02% | 20.44% | -1.42% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.91% | 23.54% | -2.63% |
IYF vs. IYG - Expense Ratio Comparison
Both IYF and IYG have an expense ratio of 0.42%.
Dividends
IYF vs. IYG - Dividend Comparison
IYF's dividend yield for the trailing twelve months is around 1.50%, more than IYG's 1.09% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IYF iShares U.S. Financials ETF | 1.50% | 1.32% | 1.29% | 1.67% | 1.86% | 1.27% | 1.72% | 1.64% | 1.90% | 1.46% | 1.67% | 1.66% |
IYG iShares U.S. Financial Services ETF | 1.09% | 1.00% | 1.16% | 1.77% | 2.07% | 1.25% | 1.71% | 1.59% | 1.81% | 1.24% | 1.28% | 1.33% |
Frequently Asked Questions
With a correlation of 0.97, IYF and IYG 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.
IYG has higher volatility (4.51%) compared to IYF (4.21%). In terms of maximum drawdown, IYF dropped -79.09% vs IYG's -81.84%.
On 10-year performance, IYG leads with 14.52% vs 13.43% for IYF. Both ETFs have the same 0.42% expense ratio. On volatility, IYF has been the lower-risk option at 4.21%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, IYG has performed better with a 14.52% return vs 13.43%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
IYF and IYG have the same expense ratio: 0.42% per year.
IYF has the higher dividend yield at 1.50%, compared with 1.09% for IYG.
IYF tracks Dow Jones U.S. Financials Index, while IYG tracks Dow Jones U.S. Financial Services TR.
IYF currently has the higher Sharpe Ratio (0.84 vs 0.81), 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.
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