IYZ vs. IYF
IYZ (iShares U.S. Telecommunications ETF) and IYF (iShares U.S. Financials ETF) are both exchange-traded funds - IYZ is a Communications Equities fund tracking the Dow Jones U.S. Select Telecommunications Index, while IYF is a Financials Equities fund tracking the Dow Jones U.S. Financials Index. Both are passively managed. Over the past 10 years, IYZ returned 5.94%/yr vs 13.53%/yr for IYF. A 0.63 correlation means they provide meaningful diversification when combined. Both charge a 0.42% expense ratio.
Performance
IYZ vs. IYF - Performance Comparison
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Returns By Period
In the year-to-date period, IYZ achieves a 29.57% return, which is significantly higher than IYF's -0.19% return. Over the past 10 years, IYZ has underperformed IYF with an annualized return of 5.94%, while IYF has yielded a comparatively higher 13.53% annualized return.
IYZ
- 1D
- 1.27%
- 1M
- 0.83%
- YTD
- 29.57%
- 6M
- 32.60%
- 1Y
- 58.27%
- 3Y*
- 28.37%
- 5Y*
- 7.57%
- 10Y*
- 5.94%
IYF
- 1D
- 1.38%
- 1M
- 4.53%
- YTD
- -0.19%
- 6M
- -0.21%
- 1Y
- 13.73%
- 3Y*
- 21.71%
- 5Y*
- 10.87%
- 10Y*
- 13.53%
IYZ vs. IYF - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
IYZ iShares U.S. Telecommunications ETF | 29.57% | 29.28% | 20.53% | 3.90% | -30.29% | 11.69% | 4.13% | 16.14% | -8.59% | -11.86% |
IYF iShares U.S. Financials ETF | -0.19% | 18.25% | 31.30% | 15.32% | -11.33% | 31.60% | -1.00% | 31.86% | -9.39% | 19.58% |
Correlation
The correlation between IYZ and IYF is 0.44, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.44 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.54 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.64 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.63 |
Correlation (All Time) Calculated using the full available price history since May 26, 2000 | 0.63 |
The correlation between IYZ and IYF shifts across timeframes, from 0.44 (1 year) to 0.64 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
IYZ vs. IYF — Risk / Return Rank
IYZ
IYF
IYZ vs. IYF - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Telecommunications ETF (IYZ) and iShares U.S. Financials ETF (IYF). 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.
| IYZ | IYF | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +2.18 | ||
| Sortino ratioReturn per unit of downside risk | +2.74 | ||
| Omega ratioGain probability vs. loss probability | 1.52 | 1.15 | +0.37 |
| Calmar ratioReturn relative to maximum drawdown | 6.54 | 0.88 | +5.65 |
| Martin ratioReturn relative to average drawdown | 25.99 | 2.38 | +23.61 |
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Drawdowns
IYZ vs. IYF - Drawdown Comparison
The maximum IYZ drawdown since its inception was -77.11%, roughly equal to the maximum IYF drawdown of -79.09%. Use the drawdown chart below to compare losses from any high point for IYZ and IYF.
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Drawdown Indicators
| IYZ | IYF | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -77.11% | -79.09% | +1.98% |
Max Drawdown (1Y)Largest decline over 1 year | -8.62% | -13.88% | +5.26% |
Max Drawdown (3Y)Largest decline over 3 years | -13.85% | -16.60% | +2.75% |
Max Drawdown (5Y)Largest decline over 5 years | -39.74% | -25.06% | -14.68% |
Max Drawdown (10Y)Largest decline over 10 years | -39.74% | -42.57% | +2.83% |
Current DrawdownCurrent decline from peak | -4.77% | -3.25% | -1.52% |
Average DrawdownAverage peak-to-trough decline | -40.10% | -17.59% | -22.51% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.17% | 5.13% | -2.96% |
Volatility
IYZ vs. IYF - Volatility Comparison
iShares U.S. Telecommunications ETF (IYZ) has a higher volatility of 8.76% compared to iShares U.S. Financials ETF (IYF) at 4.27%. This indicates that IYZ's price experiences larger fluctuations and is considered to be riskier than IYF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| IYZ | IYF | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 8.76% | 4.27% | +4.49% |
Volatility (6M)Calculated over the trailing 6-month period | 15.61% | 11.12% | +4.49% |
Volatility (1Y)Calculated over the trailing 1-year period | 18.65% | 14.58% | +4.07% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 18.88% | 19.04% | -0.16% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 19.30% | 20.90% | -1.60% |
IYZ vs. IYF - Expense Ratio Comparison
Both IYZ and IYF have an expense ratio of 0.42%.
Dividends
IYZ vs. IYF - Dividend Comparison
IYZ's dividend yield for the trailing twelve months is around 1.53%, more than IYF's 1.49% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IYF iShares U.S. Financials ETF | 1.49% | 1.32% | 1.29% | 1.67% | 1.86% | 1.27% | 1.72% | 1.64% | 1.90% | 1.46% | 1.67% | 1.66% |
IYZ iShares U.S. Telecommunications ETF | 1.53% | 2.04% | 1.94% | 2.27% | 2.55% | 2.51% | 2.60% | 2.36% | 2.15% | 3.54% | 2.27% | 1.98% |
Frequently Asked Questions
IYZ and IYF have a correlation of 0.44, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
IYZ has higher volatility (8.76%) compared to IYF (4.27%). In terms of maximum drawdown, IYZ dropped -77.11% vs IYF's -79.09%.
On 10-year performance, IYF leads with 13.53% vs 5.94% for IYZ. Both ETFs have the same 0.42% expense ratio. On volatility, IYF has been the lower-risk option at 4.27%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, IYF has performed better with a 13.53% return vs 5.94%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
IYZ and IYF have the same expense ratio: 0.42% per year.
IYZ has the higher dividend yield at 1.53%, compared with 1.49% for IYF.
IYZ is categorized as Communications Equities, while IYF is Financials Equities. IYZ tracks Dow Jones U.S. Select Telecommunications Index, while IYF tracks Dow Jones U.S. Financials Index.
IYZ currently has the higher Sharpe Ratio (3.02 vs 0.84), 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.
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