IYF vs. KRE

Last updated Jun 4, 2026

IYF (iShares U.S. Financials ETF) and KRE (SPDR S&P Regional Banking ETF) are both Financials Equities funds - IYF tracks the Dow Jones U.S. Financials Index while KRE tracks the S&P Regional Banks Select Industry Index. Both are passively managed. Over the past 10 years, IYF returned 12.56%/yr vs 7.80%/yr for KRE. Their correlation of 0.85 suggests significant overlap in exposure. IYF charges 0.42%/yr vs 0.35%/yr for KRE.

Performance

IYF vs. KRE - 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 Regional Banking ETF (KRE). 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 KRE's 5.35% return. Over the past 10 years, IYF has outperformed KRE with an annualized return of 12.56%, while KRE has yielded a comparatively lower 7.80% 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%

KRE

• 1D: -2.39%
• 1M: -1.61%
• YTD: 5.35%
• 6M: 6.27%
• 1Y: 21.36%
• 3Y*: 20.63%
• 5Y*: 1.92%
• 10Y*: 7.80%

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

IYF vs. KRE - 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%
KRE SPDR S&P Regional Banking ETF	5.35%	10.21%	18.58%	-7.61%	-15.08%	39.29%	-7.43%	27.44%	-18.81%	7.49%

Correlation

The correlation between IYF and KRE is 0.76, 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	0.76
Correlation (3Y) Calculated over the trailing 3-year period	0.80
Correlation (5Y) Calculated over the trailing 5-year period	0.83
Correlation (10Y) Calculated over the trailing 10-year period	0.83
Correlation (All Time) Calculated using the full available price history since Jun 23, 2006	0.85

The correlation between IYF and KRE has been stable across timeframes, ranging from 0.76 to 0.85 - a consistent structural relationship.

IYF vs. KRE - Sectors Allocation Comparison

Sectors	IYF	KRE
Financial Services	99.0%	100.0%
Real Estate	0.7%	-
Technology	0.3%	-
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	-
Industrials	-	-
Utilities	-	-

Return for Risk

IYF vs. KRE — 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

KRE

KRE Risk / Return Rank: 26
KRE Sharpe Ratio Rank: 25
KRE Sortino Ratio Rank: 25
KRE Omega Ratio Rank: 26
KRE Calmar Ratio Rank: 29
KRE Martin Ratio Rank: 26

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. KRE - 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 Regional Banking ETF (KRE). 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	KRE	Difference
Sharpe ratio Return per unit of total volatility	0.42	0.92	-0.50
Sortino ratio Return per unit of downside risk	0.65	1.39	-0.73
Omega ratio Gain probability vs. loss probability	1.08	1.18	-0.10
Calmar ratio Return relative to maximum drawdown	0.43	1.44	-1.00
Martin ratio Return relative to average drawdown	1.18	3.72	-2.54
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. KRE - Sharpe Ratio Comparison

The current IYF Sharpe Ratio is 0.42, which is lower than the KRE Sharpe Ratio of 0.92. The chart below compares the historical Sharpe Ratios of IYF and KRE, 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	KRE	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.42	0.92	-0.50
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.50	0.06	+0.44
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.60	0.24	+0.36
Sharpe Ratio (All Time) Calculated using the full available price history	0.22	0.13	+0.09

Drawdowns

IYF vs. KRE - Drawdown Comparison

The maximum IYF drawdown since its inception was -79.09%, which is greater than KRE's maximum drawdown of -68.54%. Use the drawdown chart below to compare losses from any high point for IYF and KRE.

Drawdown Indicators

	IYF	KRE	Difference
Max Drawdown Largest peak-to-trough decline	-79.09%	-68.54%	-10.55%
Max Drawdown (1Y) Largest decline over 1 year	-13.88%	-14.95%	+1.07%
Max Drawdown (3Y) Largest decline over 3 years	-16.60%	-28.20%	+11.60%
Max Drawdown (5Y) Largest decline over 5 years	-25.06%	-52.69%	+27.63%
Max Drawdown (10Y) Largest decline over 10 years	-42.57%	-54.92%	+12.35%
Current Drawdown Current decline from peak	-8.10%	-7.27%	-0.83%
Average Drawdown Average peak-to-trough decline	-17.61%	-21.90%	+4.29%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.06%	5.75%	-0.69%

Volatility

IYF vs. KRE - Volatility Comparison

The current volatility for iShares U.S. Financials ETF (IYF) is 3.41%, while SPDR S&P Regional Banking ETF (KRE) has a volatility of 6.14%. This indicates that IYF experiences smaller price fluctuations and is considered to be less risky than KRE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IYF	KRE	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.41%	6.14%	-2.73%
Volatility (6M) Calculated over the trailing 6-month period	10.80%	15.84%	-5.04%
Volatility (1Y) Calculated over the trailing 1-year period	14.34%	23.37%	-9.03%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.00%	29.98%	-10.98%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.89%	31.92%	-11.03%

IYF vs. KRE - Expense Ratio Comparison

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

Dividends

IYF vs. KRE - Dividend Comparison

IYF's dividend yield for the trailing twelve months is around 1.57%, less than KRE's 2.32% 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%
KRE SPDR S&P Regional Banking ETF	2.32%	2.45%	2.59%	2.99%	2.51%	1.97%	2.78%	2.21%	2.48%	1.40%	1.40%	1.80%

Frequently Asked Questions

Can I hold both IYF and KRE in my portfolio?

IYF and KRE have a correlation of 0.76, 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 KRE?

KRE has higher volatility (6.14%) compared to IYF (3.41%). In terms of maximum drawdown, IYF dropped -79.09% vs KRE's -68.54%.

Which ETF is better, IYF or KRE?

On 10-year performance, IYF leads with 12.56% vs 7.80% for KRE. On fees, KRE 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 KRE?

Over the 10-year period, IYF has performed better with a 12.56% return vs 7.80%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IYF or KRE?

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

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

KRE has the higher dividend yield at 2.32%, compared with 1.57% for IYF.

What is the main difference between IYF and KRE?

IYF tracks Dow Jones U.S. Financials Index, while KRE tracks S&P Regional Banks 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 KRE.

Which has better risk-adjusted returns?

KRE currently has the higher Sharpe Ratio (0.92 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.