IYG vs. FNCL

Last updated Jun 5, 2026

IYG (iShares U.S. Financial Services ETF) and FNCL (Fidelity MSCI Financials Index ETF) are both Financials Equities funds - IYG tracks the Dow Jones U.S. Financial Services TR while FNCL tracks the MSCI USA IMI Financials Index. Both are passively managed. Over the past 10 years, IYG returned 13.56%/yr vs 12.38%/yr for FNCL. With a 0.98 correlation, they move nearly in lockstep. IYG charges 0.42%/yr vs 0.08%/yr for FNCL.

Performance

IYG vs. FNCL - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares U.S. Financial Services ETF (IYG) and Fidelity MSCI Financials Index ETF (FNCL). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with IYG having a -3.88% return and FNCL slightly lower at -3.93%. Over the past 10 years, IYG has outperformed FNCL with an annualized return of 13.56%, while FNCL has yielded a comparatively lower 12.38% annualized return.

IYG

• 1D: 2.82%
• 1M: 1.39%
• YTD: -3.88%
• 6M: -1.63%
• 1Y: 9.20%
• 3Y*: 21.76%
• 5Y*: 8.46%
• 10Y*: 13.56%

FNCL

• 1D: 2.67%
• 1M: 0.71%
• YTD: -3.93%
• 6M: -1.65%
• 1Y: 5.73%
• 3Y*: 19.77%
• 5Y*: 8.36%
• 10Y*: 12.38%

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

IYG vs. FNCL - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IYG iShares U.S. Financial Services ETF	-3.88%	19.85%	31.94%	16.07%	-16.76%	30.36%	0.99%	37.62%	-12.56%	24.47%
FNCL Fidelity MSCI Financials Index ETF	-3.93%	14.94%	30.44%	14.10%	-12.28%	34.92%	-2.19%	31.59%	-13.44%	19.99%

Correlation

The correlation between IYG and FNCL is 0.98 - 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	0.98
Correlation (3Y) Calculated over the trailing 3-year period	0.98
Correlation (5Y) Calculated over the trailing 5-year period	0.98
Correlation (10Y) Calculated over the trailing 10-year period	0.98
Correlation (All Time) Calculated using the full available price history since Oct 25, 2013	0.98

The correlation between IYG and FNCL has been stable across timeframes, ranging from 0.98 to 0.98 - a consistent structural relationship.

IYG vs. FNCL - Sectors Allocation Comparison

Sectors	IYG	FNCL
Financial Services	100.0%	96.9%
Basic Materials	-	-
Communication Services	-	0.0%
Consumer Cyclical	-	0.0%
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	0.0%
Industrials	-	0.2%
Real Estate	-	0.7%
Technology	-	2.1%
Utilities	-	-

Return for Risk

IYG vs. FNCL — Risk / Return Rank

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

IYG

IYG Risk / Return Rank: 18
IYG Sharpe Ratio Rank: 19
IYG Sortino Ratio Rank: 19
IYG Omega Ratio Rank: 19
IYG Calmar Ratio Rank: 17
IYG Martin Ratio Rank: 16

FNCL

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

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.

IYG vs. FNCL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Financial Services ETF (IYG) and Fidelity MSCI Financials Index ETF (FNCL). 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.

	IYG	FNCL	Difference
Sharpe ratio: Return per unit of total volatility	0.59	0.38	+0.21
Sortino ratio: Return per unit of downside risk	0.89	0.62	+0.27
Omega ratio: Gain probability vs. loss probability	1.11	1.08	+0.04
Calmar ratio: Return relative to maximum drawdown	0.58	0.39	+0.19
Martin ratio: Return relative to average drawdown	1.51	1.03	+0.48
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IYG vs. FNCL - Sharpe Ratio Comparison

The current IYG Sharpe Ratio is 0.59, which is higher than the FNCL Sharpe Ratio of 0.38. The chart below compares the historical Sharpe Ratios of IYG and FNCL, 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

	IYG	FNCL	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.59	0.38	+0.21
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.42	0.44	-0.02
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.58	0.56	+0.02
Sharpe Ratio (All Time) Calculated using the full available price history	0.22	0.54	-0.31

Drawdowns

IYG vs. FNCL - Drawdown Comparison

The maximum IYG drawdown since its inception was -81.84%, which is greater than FNCL's maximum drawdown of -44.38%. Use the drawdown chart below to compare losses from any high point for IYG and FNCL.

Drawdown Indicators

	IYG	FNCL	Difference
Max Drawdown Largest peak-to-trough decline	-81.84%	-44.38%	-37.46%
Max Drawdown (1Y) Largest decline over 1 year	-15.90%	-14.78%	-1.12%
Max Drawdown (3Y) Largest decline over 3 years	-18.54%	-17.29%	-1.25%
Max Drawdown (5Y) Largest decline over 5 years	-29.62%	-25.68%	-3.94%
Max Drawdown (10Y) Largest decline over 10 years	-44.32%	-44.38%	+0.06%
Current Drawdown Current decline from peak	-7.23%	-6.86%	-0.37%
Average Drawdown Average peak-to-trough decline	-20.74%	-6.90%	-13.84%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.11%	5.58%	+0.53%

Volatility

IYG vs. FNCL - Volatility Comparison

iShares U.S. Financial Services ETF (IYG) and Fidelity MSCI Financials Index ETF (FNCL) have volatilities of 4.41% and 4.25%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IYG	FNCL	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.41%	4.25%	+0.16%
Volatility (6M) Calculated over the trailing 6-month period	12.10%	11.35%	+0.75%
Volatility (1Y) Calculated over the trailing 1-year period	15.65%	14.99%	+0.66%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.47%	19.30%	+1.17%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.54%	22.35%	+1.19%

IYG vs. FNCL - Expense Ratio Comparison

IYG has a 0.42% expense ratio, which is higher than FNCL's 0.08% expense ratio.

Dividends

IYG vs. FNCL - Dividend Comparison

IYG's dividend yield for the trailing twelve months is around 1.11%, less than FNCL's 1.66% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FNCL Fidelity MSCI Financials Index ETF	1.66%	1.45%	1.52%	1.91%	2.29%	1.75%	2.26%	2.17%	2.37%	1.60%	1.81%	2.17%
IYG iShares U.S. Financial Services ETF	1.11%	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

Can I hold both IYG and FNCL in my portfolio?

With a correlation of 0.98, IYG and FNCL 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.

Which is riskier, IYG or FNCL?

IYG has higher volatility (4.41%) compared to FNCL (4.25%). In terms of maximum drawdown, IYG dropped -81.84% vs FNCL's -44.38%.

Which ETF is better, IYG or FNCL?

On 10-year performance, IYG leads with 13.56% vs 12.38% for FNCL. On fees, FNCL is cheaper at 0.08% per year. On volatility, FNCL has been the lower-risk option at 4.25%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IYG or FNCL?

Over the 10-year period, IYG has performed better with a 13.56% return vs 12.38%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IYG or FNCL?

FNCL is cheaper with a 0.08% expense ratio, compared with 0.42% for IYG.

Which ETF pays a higher dividend yield, IYG or FNCL?

FNCL has the higher dividend yield at 1.66%, compared with 1.11% for IYG.

What is the main difference between IYG and FNCL?

IYG tracks Dow Jones U.S. Financial Services TR, while FNCL tracks MSCI USA IMI Financials Index. They also come from different issuers: iShares and Fidelity. Their fees differ too: 0.42% for IYG and 0.08% for FNCL.

Which has better risk-adjusted returns?

IYG currently has the higher Sharpe Ratio (0.59 vs 0.38), 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.