IYG vs. KBWB

Last updated Jun 5, 2026

IYG (iShares U.S. Financial Services ETF) and KBWB (Invesco KBW Bank ETF) are both Financials Equities funds - IYG tracks the Dow Jones U.S. Financial Services TR while KBWB tracks the KBW Nasdaq Bank Index. Both are passively managed. Over the past 10 years, IYG returned 13.56%/yr vs 12.35%/yr for KBWB. Their correlation of 0.94 suggests significant overlap in exposure. IYG charges 0.42%/yr vs 0.35%/yr for KBWB.

Performance

IYG vs. KBWB - Performance Comparison

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

Returns By Period

In the year-to-date period, IYG achieves a -3.88% return, which is significantly lower than KBWB's 7.86% return. Over the past 10 years, IYG has outperformed KBWB with an annualized return of 13.56%, while KBWB has yielded a comparatively lower 12.35% 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%

KBWB

• 1D: 3.65%
• 1M: 4.78%
• YTD: 7.86%
• 6M: 11.77%
• 1Y: 40.56%
• 3Y*: 33.99%
• 5Y*: 8.53%
• 10Y*: 12.35%

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

IYG vs. KBWB - 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%
KBWB Invesco KBW Bank ETF	7.86%	32.05%	36.73%	-1.18%	-21.68%	37.72%	-10.46%	35.90%	-18.30%	18.11%

Correlation

The correlation between IYG and KBWB is 0.90, 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	0.90
Correlation (3Y) Calculated over the trailing 3-year period	0.91
Correlation (5Y) Calculated over the trailing 5-year period	0.93
Correlation (10Y) Calculated over the trailing 10-year period	0.94
Correlation (All Time) Calculated using the full available price history since Nov 2, 2011	0.94

The correlation between IYG and KBWB has been stable across timeframes, ranging from 0.90 to 0.94 - a consistent structural relationship.

IYG vs. KBWB - Sectors Allocation Comparison

Sectors	IYG	KBWB
Financial Services	100.0%	100.0%
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	-
Industrials	-	-
Real Estate	-	-
Technology	-	-
Utilities	-	-

Return for Risk

IYG vs. KBWB — 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

KBWB

KBWB Risk / Return Rank: 55
KBWB Sharpe Ratio Rank: 61
KBWB Sortino Ratio Rank: 55
KBWB Omega Ratio Rank: 58
KBWB Calmar Ratio Rank: 51
KBWB Martin Ratio Rank: 48

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. KBWB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Financial Services ETF (IYG) and Invesco KBW Bank ETF (KBWB). 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	KBWB	Difference
Sharpe ratio: Return per unit of total volatility	0.59	2.01	-1.41
Sortino ratio: Return per unit of downside risk	0.89	2.61	-1.72
Omega ratio: Gain probability vs. loss probability	1.11	1.35	-0.24
Calmar ratio: Return relative to maximum drawdown	0.58	2.49	-1.91
Martin ratio: Return relative to average drawdown	1.51	7.82	-6.31
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. KBWB - Sharpe Ratio Comparison

The current IYG Sharpe Ratio is 0.59, which is lower than the KBWB Sharpe Ratio of 2.01. The chart below compares the historical Sharpe Ratios of IYG and KBWB, 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	KBWB	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.59	2.01	-1.41
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.42	0.32	+0.09
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.58	0.42	+0.15
Sharpe Ratio (All Time) Calculated using the full available price history	0.22	0.51	-0.28

Drawdowns

IYG vs. KBWB - Drawdown Comparison

The maximum IYG drawdown since its inception was -81.84%, which is greater than KBWB's maximum drawdown of -50.27%. Use the drawdown chart below to compare losses from any high point for IYG and KBWB.

Drawdown Indicators

	IYG	KBWB	Difference
Max Drawdown Largest peak-to-trough decline	-81.84%	-50.27%	-31.57%
Max Drawdown (1Y) Largest decline over 1 year	-15.90%	-16.38%	+0.48%
Max Drawdown (3Y) Largest decline over 3 years	-18.54%	-25.43%	+6.89%
Max Drawdown (5Y) Largest decline over 5 years	-29.62%	-49.31%	+19.69%
Max Drawdown (10Y) Largest decline over 10 years	-44.32%	-50.27%	+5.95%
Current Drawdown Current decline from peak	-7.23%	0.00%	-7.23%
Average Drawdown Average peak-to-trough decline	-20.74%	-11.74%	-9.00%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.11%	5.20%	+0.91%

Volatility

IYG vs. KBWB - Volatility Comparison

The current volatility for iShares U.S. Financial Services ETF (IYG) is 4.41%, while Invesco KBW Bank ETF (KBWB) has a volatility of 6.16%. This indicates that IYG experiences smaller price fluctuations and is considered to be less risky than KBWB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IYG	KBWB	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.41%	6.16%	-1.75%
Volatility (6M) Calculated over the trailing 6-month period	12.10%	15.88%	-3.78%
Volatility (1Y) Calculated over the trailing 1-year period	15.65%	20.34%	-4.69%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.47%	26.67%	-6.20%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.54%	29.21%	-5.67%

IYG vs. KBWB - Expense Ratio Comparison

IYG has a 0.42% expense ratio, which is higher than KBWB's 0.35% expense ratio.

Dividends

IYG vs. KBWB - Dividend Comparison

IYG's dividend yield for the trailing twelve months is around 1.11%, less than KBWB's 1.99% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
KBWB Invesco KBW Bank ETF	1.99%	2.04%	2.46%	3.20%	3.05%	2.13%	2.62%	2.38%	2.54%	1.35%	1.53%	1.53%

Frequently Asked Questions

Can I hold both IYG and KBWB in my portfolio?

IYG and KBWB have a correlation of 0.90, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IYG or KBWB?

KBWB has higher volatility (6.16%) compared to IYG (4.41%). In terms of maximum drawdown, IYG dropped -81.84% vs KBWB's -50.27%.

Which ETF is better, IYG or KBWB?

On 10-year performance, IYG leads with 13.56% vs 12.35% for KBWB. On fees, KBWB is cheaper at 0.35% per year. On volatility, IYG has been the lower-risk option at 4.41%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IYG or KBWB?

Over the 10-year period, IYG has performed better with a 13.56% return vs 12.35%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IYG or KBWB?

KBWB is cheaper with a 0.35% expense ratio, compared with 0.42% for IYG.

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

KBWB has the higher dividend yield at 1.99%, compared with 1.11% for IYG.

What is the main difference between IYG and KBWB?

IYG tracks Dow Jones U.S. Financial Services TR, while KBWB tracks KBW Nasdaq Bank Index. They also come from different issuers: iShares and Invesco. Their fees differ too: 0.42% for IYG and 0.35% for KBWB.

Which has better risk-adjusted returns?

KBWB currently has the higher Sharpe Ratio (2.01 vs 0.59), 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.