IYG vs. KWT

Last updated Jul 16, 2026

IYG (iShares U.S. Financial Services ETF) and KWT (iShares MSCI Kuwait ETF) are both Financials Equities funds from iShares - IYG tracks the Dow Jones U.S. Financial Services TR while KWT tracks the MSCI All Kuwait Select Size Liquidity Capped Index. Both are passively managed. Over the past 5 years, IYG returned 10.98%/yr vs 8.49%/yr for KWT. At a 0.36 correlation, their price movements are largely independent. IYG charges 0.42%/yr vs 0.74%/yr for KWT.

Performance

IYG vs. KWT - Performance Comparison

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

Returns By Period

In the year-to-date period, IYG achieves a 4.22% return, which is significantly higher than KWT's -3.51% return.

IYG

• 1D: 1.05%
• 1M: 5.66%
• 6M: 4.87%
• YTD: 4.22%
• 1Y: 13.34%
• 3Y*: 22.40%
• 5Y*: 10.98%
• 10Y*: 14.86%

KWT

• 1D: -0.40%
• 1M: -3.79%
• 6M: -1.90%
• YTD: -3.51%
• 1Y: -2.29%
• 3Y*: 7.33%
• 5Y*: 8.49%
• 10Y*: —

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

IYG vs. KWT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
IYG iShares U.S. Financial Services ETF	4.22%	19.85%	31.94%	16.07%	-16.76%	30.36%	16.16%
KWT iShares MSCI Kuwait ETF	-3.51%	25.38%	11.29%	-4.71%	5.16%	30.73%	7.37%

Correlation

The correlation between IYG and KWT is 0.29, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.29
Correlation (3Y) Calculated over the trailing 3-year period	0.35
Correlation (5Y) Calculated over the trailing 5-year period	0.35
Correlation (All Time) Calculated using the full available price history since Sep 3, 2020	0.36

IYG vs. KWT - Sectors Allocation Comparison

Sectors	IYG	KWT
Financial Services	99.8%	66.0%
Technology	0.0%	-
Basic Materials	-	2.0%
Communication Services	-	6.3%
Consumer Cyclical	-	1.7%
Consumer Defensive	-	2.6%
Energy	-	-
Healthcare	-	-
Industrials	-	9.5%
Real Estate	-	11.3%
Utilities	-	0.6%

Return for Risk

IYG vs. KWT — Risk / Return Rank

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

IYG

IYG Risk / Return Rank: 25
IYG Sharpe Ratio Rank: 28
IYG Sortino Ratio Rank: 26
IYG Omega Ratio Rank: 27
IYG Calmar Ratio Rank: 22
IYG Martin Ratio Rank: 22

KWT

KWT Risk / Return Rank: 7
KWT Sharpe Ratio Rank: 7
KWT Sortino Ratio Rank: 7
KWT Omega Ratio Rank: 7
KWT Calmar Ratio Rank: 8
KWT Martin Ratio Rank: 7

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. KWT - Risk-Adjusted Trends Comparison

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

	IYG	KWT	Difference
Sharpe ratio: Return per unit of total volatility	0.85	-0.17	+1.03
Sortino ratio: Return per unit of downside risk	1.24	-0.15	+1.39
Omega ratio: Gain probability vs. loss probability	1.16	0.98	+0.18
Calmar ratio: Return relative to maximum drawdown	0.84	-0.20	+1.04
Martin ratio: Return relative to average drawdown	2.13	-0.43	+2.57

IYG vs. KWT - Sharpe Ratio Comparison

The current IYG Sharpe Ratio is 0.85, which is higher than the KWT Sharpe Ratio of -0.17. The chart below compares the historical Sharpe Ratios of IYG and KWT, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

IYG vs. KWT - Drawdown Comparison

The maximum IYG drawdown since its inception was -81.84%, which is greater than KWT's maximum drawdown of -24.37%. Use the drawdown chart below to compare losses from any high point for IYG and KWT.

Drawdown Indicators

	IYG	KWT	Difference
Max Drawdown Largest peak-to-trough decline	-81.84%	-24.37%	-57.47%
Max Drawdown (1Y) Largest decline over 1 year	-15.90%	-11.54%	-4.36%
Max Drawdown (3Y) Largest decline over 3 years	-18.54%	-15.12%	-3.42%
Max Drawdown (5Y) Largest decline over 5 years	-29.62%	-24.37%	-5.25%
Max Drawdown (10Y) Largest decline over 10 years	-44.32%	—	—
Current Drawdown Current decline from peak	0.00%	-8.17%	+8.17%
Average Drawdown Average peak-to-trough decline	-20.67%	-7.29%	-13.38%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.27%	5.29%	+0.98%

Volatility

IYG vs. KWT - Volatility Comparison

iShares U.S. Financial Services ETF (IYG) has a higher volatility of 4.34% compared to iShares MSCI Kuwait ETF (KWT) at 3.25%. This indicates that IYG's price experiences larger fluctuations and is considered to be riskier than KWT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IYG	KWT	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.34%	3.25%	+1.09%
Volatility (6M) Calculated over the trailing 6-month period	12.24%	10.20%	+2.04%
Volatility (1Y) Calculated over the trailing 1-year period	15.76%	13.38%	+2.38%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.41%	13.65%	+6.76%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.37%	13.91%	+9.46%

IYG vs. KWT - Expense Ratio Comparison

IYG has a 0.42% expense ratio, which is lower than KWT's 0.74% expense ratio.

Dividends

IYG vs. KWT - Dividend Comparison

IYG's dividend yield for the trailing twelve months is around 1.03%, less than KWT's 5.71% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IYG iShares U.S. Financial Services ETF	1.03%	1.00%	1.16%	1.77%	2.07%	1.25%	1.71%	1.59%	1.81%	1.24%	1.28%	1.33%
KWT iShares MSCI Kuwait ETF	5.71%	5.40%	6.09%	2.25%	5.87%	7.65%	0.27%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both IYG and KWT in my portfolio?

IYG and KWT have a correlation of 0.29, 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 KWT?

IYG has higher volatility (4.34%) compared to KWT (3.25%). In terms of maximum drawdown, IYG dropped -81.84% vs KWT's -24.37%.

Which ETF is better, IYG or KWT?

On 5-year performance, IYG leads with 10.98% vs 8.49% for KWT. On fees, IYG is cheaper at 0.42% per year. On volatility, KWT has been the lower-risk option at 3.25%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IYG or KWT?

Over the 5-year period, IYG has performed better with a 10.98% return vs 8.49%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IYG or KWT?

IYG is cheaper with a 0.42% expense ratio, compared with 0.74% for KWT.

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

KWT has the higher dividend yield at 5.71%, compared with 1.03% for IYG.

What is the main difference between IYG and KWT?

IYG tracks Dow Jones U.S. Financial Services TR, while KWT tracks MSCI All Kuwait Select Size Liquidity Capped Index. Their fees differ too: 0.42% for IYG and 0.74% for KWT.

Which has better risk-adjusted returns?

IYG currently has the higher Sharpe Ratio (0.85 vs -0.17), 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.