IYG vs. TFNS

Last updated Jun 25, 2026

IYG (iShares U.S. Financial Services ETF) and TFNS (T. Rowe Price Financials ETF) are both Financials Equities funds. IYG is passively managed, while TFNS is actively managed. Over the past year, IYG returned 9.42% vs 9.53% for TFNS. With a 0.97 correlation, they move nearly in lockstep. IYG charges 0.42%/yr vs 0.44%/yr for TFNS.

Performance

IYG vs. TFNS - Performance Comparison

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

Returns By Period

In the year-to-date period, IYG achieves a -1.05% return, which is significantly lower than TFNS's 0.10% return.

IYG

• 1D: -0.52%
• 1M: 3.92%
• YTD: -1.05%
• 6M: -2.97%
• 1Y: 9.42%
• 3Y*: 22.91%
• 5Y*: 9.46%
• 10Y*: 14.99%

TFNS

• 1D: -0.35%
• 1M: 3.64%
• YTD: 0.10%
• 6M: -1.73%
• 1Y: 9.53%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

IYG vs. TFNS - Yearly Performance Comparison

	2026 (YTD)	2025
IYG iShares U.S. Financial Services ETF	-1.05%	12.28%
TFNS T. Rowe Price Financials ETF	0.10%	11.06%

Correlation

The correlation between IYG and TFNS is 0.97 - 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	0.97
Correlation (All Time) Calculated using the full available price history since Jun 12, 2025	0.97

The correlation between IYG and TFNS has been stable across timeframes, ranging from 0.97 to 0.97 - a consistent structural relationship.

IYG vs. TFNS - Sectors Allocation Comparison

Sectors	IYG	TFNS
Financial Services	100.0%	96.9%
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	-
Industrials	-	1.1%
Real Estate	-	-
Technology	-	2.0%
Utilities	-	-

Return for Risk

IYG vs. TFNS — Risk / Return Rank

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

IYG

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

TFNS

TFNS Risk / Return Rank: 19
TFNS Sharpe Ratio Rank: 20
TFNS Sortino Ratio Rank: 19
TFNS Omega Ratio Rank: 19
TFNS Calmar Ratio Rank: 18
TFNS Martin Ratio Rank: 18

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. TFNS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Financial Services ETF (IYG) and T. Rowe Price Financials ETF (TFNS). 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	TFNS	Difference
Sharpe ratio: Return per unit of total volatility	0.61	0.64	-0.03
Sortino ratio: Return per unit of downside risk	0.92	0.96	-0.04
Omega ratio: Gain probability vs. loss probability	1.12	1.12	0.00
Calmar ratio: Return relative to maximum drawdown	0.59	0.68	-0.09
Martin ratio: Return relative to average drawdown	1.51	1.84	-0.32

IYG vs. TFNS - Sharpe Ratio Comparison

The current IYG Sharpe Ratio is 0.61, which is comparable to the TFNS Sharpe Ratio of 0.64. The chart below compares the historical Sharpe Ratios of IYG and TFNS, 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. TFNS - Drawdown Comparison

The maximum IYG drawdown since its inception was -81.84%, which is greater than TFNS's maximum drawdown of -14.00%. Use the drawdown chart below to compare losses from any high point for IYG and TFNS.

Drawdown Indicators

	IYG	TFNS	Difference
Max Drawdown Largest peak-to-trough decline	-81.84%	-14.00%	-67.84%
Max Drawdown (1Y) Largest decline over 1 year	-15.90%	-14.00%	-1.90%
Max Drawdown (3Y) Largest decline over 3 years	-18.54%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-29.62%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-44.32%	—	—
Current Drawdown Current decline from peak	-4.50%	-2.70%	-1.80%
Average Drawdown Average peak-to-trough decline	-20.71%	-3.81%	-16.90%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.23%	5.19%	+1.04%

Volatility

IYG vs. TFNS - Volatility Comparison

iShares U.S. Financial Services ETF (IYG) has a higher volatility of 4.46% compared to T. Rowe Price Financials ETF (TFNS) at 4.06%. This indicates that IYG's price experiences larger fluctuations and is considered to be riskier than TFNS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IYG	TFNS	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.46%	4.06%	+0.40%
Volatility (6M) Calculated over the trailing 6-month period	12.15%	11.44%	+0.71%
Volatility (1Y) Calculated over the trailing 1-year period	15.59%	14.96%	+0.63%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.42%	15.04%	+5.38%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.44%	15.04%	+8.40%

IYG vs. TFNS - Expense Ratio Comparison

IYG has a 0.42% expense ratio, which is lower than TFNS's 0.44% expense ratio.

Dividends

IYG vs. TFNS - Dividend Comparison

IYG's dividend yield for the trailing twelve months is around 1.09%, more than TFNS's 0.49% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IYG iShares U.S. Financial Services ETF	1.09%	1.00%	1.16%	1.77%	2.07%	1.25%	1.71%	1.59%	1.81%	1.24%	1.28%	1.33%
TFNS T. Rowe Price Financials ETF	0.49%	0.49%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both IYG and TFNS in my portfolio?

With a correlation of 0.97, IYG and TFNS 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 TFNS?

IYG has higher volatility (4.46%) compared to TFNS (4.06%). In terms of maximum drawdown, IYG dropped -81.84% vs TFNS's -14.00%.

Which ETF is better, IYG or TFNS?

On 1-year performance, TFNS leads with 9.53% vs 9.42% for IYG. On fees, IYG is cheaper at 0.42% per year. On volatility, TFNS has been the lower-risk option at 4.06%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IYG or TFNS?

Over the 1-year period, TFNS has performed better with a 9.53% return vs 9.42%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IYG or TFNS?

IYG is cheaper with a 0.42% expense ratio, compared with 0.44% for TFNS.

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

IYG has the higher dividend yield at 1.09%, compared with 0.49% for TFNS.

What is the main difference between IYG and TFNS?

They also come from different issuers: iShares and T. Rowe Price. Their fees differ too: 0.42% for IYG and 0.44% for TFNS.

Which has better risk-adjusted returns?

TFNS currently has the higher Sharpe Ratio (0.64 vs 0.61), 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.