IYF vs. KCE

Last updated Jun 4, 2026

IYF (iShares U.S. Financials ETF) and KCE (SPDR S&P Capital Markets ETF) are both Financials Equities funds - IYF tracks the Dow Jones U.S. Financials Index while KCE tracks the S&P Capital Markets Select Industry Index. Both are passively managed. Over the past 10 years, IYF returned 12.56%/yr vs 16.37%/yr for KCE. Their correlation of 0.88 suggests significant overlap in exposure. IYF charges 0.42%/yr vs 0.35%/yr for KCE.

Performance

IYF vs. KCE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares U.S. Financials ETF (IYF) and SPDR S&P Capital Markets ETF (KCE). 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 KCE's -1.07% return. Over the past 10 years, IYF has underperformed KCE with an annualized return of 12.56%, while KCE has yielded a comparatively higher 16.37% 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%

KCE

• 1D: -1.85%
• 1M: -2.01%
• YTD: -1.07%
• 6M: 1.30%
• 1Y: 10.93%
• 3Y*: 23.82%
• 5Y*: 11.80%
• 10Y*: 16.37%

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

IYF vs. KCE - 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%
KCE SPDR S&P Capital Markets ETF	-1.07%	10.76%	37.51%	32.04%	-22.14%	40.05%	30.82%	27.13%	-15.63%	32.01%

Correlation

The correlation between IYF and KCE is 0.83, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.83
Correlation (3Y) Calculated over the trailing 3-year period	0.86
Correlation (5Y) Calculated over the trailing 5-year period	0.88
Correlation (10Y) Calculated over the trailing 10-year period	0.87
Correlation (All Time) Calculated using the full available price history since Nov 16, 2005	0.88

The correlation between IYF and KCE has been stable across timeframes, ranging from 0.83 to 0.88 - a consistent structural relationship.

IYF vs. KCE - Sectors Allocation Comparison

Sectors	IYF	KCE
Financial Services	99.0%	98.5%
Real Estate	0.7%	-
Technology	0.3%	1.5%
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	-
Industrials	-	-
Utilities	-	-

Return for Risk

IYF vs. KCE — 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

KCE

KCE Risk / Return Rank: 17
KCE Sharpe Ratio Rank: 17
KCE Sortino Ratio Rank: 17
KCE Omega Ratio Rank: 17
KCE Calmar Ratio Rank: 16
KCE Martin Ratio Rank: 17

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. KCE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Financials ETF (IYF) and SPDR S&P Capital Markets ETF (KCE). 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	KCE	Difference
Sharpe ratio Return per unit of total volatility	0.42	0.56	-0.14
Sortino ratio Return per unit of downside risk	0.65	0.87	-0.22
Omega ratio Gain probability vs. loss probability	1.08	1.11	-0.03
Calmar ratio Return relative to maximum drawdown	0.43	0.63	-0.20
Martin ratio Return relative to average drawdown	1.18	1.65	-0.47
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. KCE - Sharpe Ratio Comparison

The current IYF Sharpe Ratio is 0.42, which is comparable to the KCE Sharpe Ratio of 0.56. The chart below compares the historical Sharpe Ratios of IYF and KCE, 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	KCE	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.42	0.56	-0.14
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.50	0.52	-0.01
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.60	0.71	-0.11
Sharpe Ratio (All Time) Calculated using the full available price history	0.22	0.25	-0.03

Drawdowns

IYF vs. KCE - Drawdown Comparison

The maximum IYF drawdown since its inception was -79.09%, which is greater than KCE's maximum drawdown of -74.00%. Use the drawdown chart below to compare losses from any high point for IYF and KCE.

Drawdown Indicators

	IYF	KCE	Difference
Max Drawdown Largest peak-to-trough decline	-79.09%	-74.00%	-5.09%
Max Drawdown (1Y) Largest decline over 1 year	-13.88%	-17.44%	+3.56%
Max Drawdown (3Y) Largest decline over 3 years	-16.60%	-26.31%	+9.71%
Max Drawdown (5Y) Largest decline over 5 years	-25.06%	-34.45%	+9.39%
Max Drawdown (10Y) Largest decline over 10 years	-42.57%	-40.78%	-1.79%
Current Drawdown Current decline from peak	-8.10%	-8.15%	+0.05%
Average Drawdown Average peak-to-trough decline	-17.61%	-22.81%	+5.20%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.06%	6.63%	-1.57%

Volatility

IYF vs. KCE - Volatility Comparison

The current volatility for iShares U.S. Financials ETF (IYF) is 3.41%, while SPDR S&P Capital Markets ETF (KCE) has a volatility of 4.24%. This indicates that IYF experiences smaller price fluctuations and is considered to be less risky than KCE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IYF	KCE	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.41%	4.24%	-0.83%
Volatility (6M) Calculated over the trailing 6-month period	10.80%	14.98%	-4.18%
Volatility (1Y) Calculated over the trailing 1-year period	14.34%	19.69%	-5.35%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.00%	23.01%	-4.01%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.89%	23.10%	-2.21%

IYF vs. KCE - Expense Ratio Comparison

IYF has a 0.42% expense ratio, which is higher than KCE's 0.35% expense ratio.

Dividends

IYF vs. KCE - Dividend Comparison

IYF's dividend yield for the trailing twelve months is around 1.57%, less than KCE's 1.75% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
KCE SPDR S&P Capital Markets ETF	1.75%	1.63%	1.56%	1.82%	2.42%	1.53%	2.20%	2.32%	2.67%	1.95%	2.30%	2.43%

Frequently Asked Questions

Can I hold both IYF and KCE in my portfolio?

IYF and KCE have a correlation of 0.83, 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 KCE?

KCE has higher volatility (4.24%) compared to IYF (3.41%). In terms of maximum drawdown, IYF dropped -79.09% vs KCE's -74.00%.

Which ETF is better, IYF or KCE?

On 10-year performance, KCE leads with 16.37% vs 12.56% for IYF. On fees, KCE is cheaper at 0.35% per year. On volatility, IYF has been the lower-risk option at 3.41%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IYF or KCE?

Over the 10-year period, KCE has performed better with a 16.37% return vs 12.56%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IYF or KCE?

KCE is cheaper with a 0.35% expense ratio, compared with 0.42% for IYF.

Which ETF pays a higher dividend yield, IYF or KCE?

KCE has the higher dividend yield at 1.75%, compared with 1.57% for IYF.

What is the main difference between IYF and KCE?

IYF tracks Dow Jones U.S. Financials Index, while KCE tracks S&P Capital Markets Select Industry Index. They also come from different issuers: iShares and State Street. Their fees differ too: 0.42% for IYF and 0.35% for KCE.

Which has better risk-adjusted returns?

KCE currently has the higher Sharpe Ratio (0.56 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.