KBE vs. IAK

Last updated Jun 4, 2026

KBE (SPDR S&P Bank ETF) and IAK (iShares U.S. Insurance ETF) are both Financials Equities funds - KBE tracks the S&P Banks Select Industry Index while IAK tracks the Dow Jones U.S. Select Insurance Index. Both are passively managed. Over the past 10 years, KBE returned 9.19%/yr vs 11.66%/yr for IAK. A 0.76 correlation means they provide meaningful diversification when combined. KBE charges 0.35%/yr vs 0.43%/yr for IAK.

Performance

KBE vs. IAK - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SPDR S&P Bank ETF (KBE) and iShares U.S. Insurance ETF (IAK). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, KBE achieves a 2.87% return, which is significantly higher than IAK's -4.56% return. Over the past 10 years, KBE has underperformed IAK with an annualized return of 9.19%, while IAK has yielded a comparatively higher 11.66% annualized return.

KBE

• 1D: -2.28%
• 1M: -1.94%
• YTD: 2.87%
• 6M: 4.27%
• 1Y: 18.75%
• 3Y*: 22.67%
• 5Y*: 5.28%
• 10Y*: 9.19%

IAK

• 1D: -0.88%
• 1M: -2.27%
• YTD: -4.56%
• 6M: -1.81%
• 1Y: -4.16%
• 3Y*: 16.73%
• 5Y*: 11.50%
• 10Y*: 11.66%

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

KBE vs. IAK - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
KBE SPDR S&P Bank ETF	2.87%	12.36%	23.78%	5.30%	-14.83%	33.46%	-8.75%	29.78%	-19.65%	10.49%
IAK iShares U.S. Insurance ETF	-4.56%	9.50%	28.25%	11.28%	11.33%	26.84%	-2.86%	25.94%	-11.48%	14.18%

Correlation

The correlation between KBE and IAK is 0.53, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.53
Correlation (3Y) Calculated over the trailing 3-year period	0.55
Correlation (5Y) Calculated over the trailing 5-year period	0.66
Correlation (10Y) Calculated over the trailing 10-year period	0.72
Correlation (All Time) Calculated using the full available price history since May 8, 2006	0.76

Over the past year, the correlation between KBE and IAK has dropped to 0.53 - well below their long-term average of 0.76, suggesting their price drivers have been diverging.

KBE vs. IAK - Sectors Allocation Comparison

Sectors	KBE	IAK
Financial Services	100.0%	99.5%
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	0.5%
Industrials	-	-
Real Estate	-	-
Technology	-	-
Utilities	-	-

Return for Risk

KBE vs. IAK — Risk / Return Rank

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

KBE

KBE Risk / Return Rank: 25
KBE Sharpe Ratio Rank: 24
KBE Sortino Ratio Rank: 24
KBE Omega Ratio Rank: 25
KBE Calmar Ratio Rank: 26
KBE Martin Ratio Rank: 25

IAK

IAK Risk / Return Rank: 5
IAK Sharpe Ratio Rank: 6
IAK Sortino Ratio Rank: 6
IAK Omega Ratio Rank: 5
IAK Calmar Ratio Rank: 4
IAK Martin Ratio Rank: 3

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.

KBE vs. IAK - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR S&P Bank ETF (KBE) and iShares U.S. Insurance ETF (IAK). 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.

	KBE	IAK	Difference
Sharpe ratio Return per unit of total volatility	0.87	-0.28	+1.16
Sortino ratio Return per unit of downside risk	1.32	-0.29	+1.61
Omega ratio Gain probability vs. loss probability	1.17	0.97	+0.20
Calmar ratio Return relative to maximum drawdown	1.29	-0.55	+1.84
Martin ratio Return relative to average drawdown	3.39	-1.14	+4.53
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

KBE vs. IAK - Sharpe Ratio Comparison

The current KBE Sharpe Ratio is 0.87, which is higher than the IAK Sharpe Ratio of -0.28. The chart below compares the historical Sharpe Ratios of KBE and IAK, 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

	KBE	IAK	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.87	-0.28	+1.16
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.19	0.64	-0.45
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.31	0.56	-0.25
Sharpe Ratio (All Time) Calculated using the full available price history	0.10	0.26	-0.16

Drawdowns

KBE vs. IAK - Drawdown Comparison

The maximum KBE drawdown since its inception was -83.15%, which is greater than IAK's maximum drawdown of -77.38%. Use the drawdown chart below to compare losses from any high point for KBE and IAK.

Drawdown Indicators

	KBE	IAK	Difference
Max Drawdown Largest peak-to-trough decline	-83.15%	-77.38%	-5.77%
Max Drawdown (1Y) Largest decline over 1 year	-14.63%	-7.62%	-7.01%
Max Drawdown (3Y) Largest decline over 3 years	-25.97%	-11.58%	-14.39%
Max Drawdown (5Y) Largest decline over 5 years	-45.25%	-14.76%	-30.49%
Max Drawdown (10Y) Largest decline over 10 years	-53.14%	-44.95%	-8.19%
Current Drawdown Current decline from peak	-7.38%	-5.82%	-1.56%
Average Drawdown Average peak-to-trough decline	-27.54%	-16.13%	-11.41%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.55%	3.96%	+1.59%

Volatility

KBE vs. IAK - Volatility Comparison

SPDR S&P Bank ETF (KBE) has a higher volatility of 5.65% compared to iShares U.S. Insurance ETF (IAK) at 3.82%. This indicates that KBE's price experiences larger fluctuations and is considered to be riskier than IAK based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	KBE	IAK	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.65%	3.82%	+1.83%
Volatility (6M) Calculated over the trailing 6-month period	14.93%	9.98%	+4.95%
Volatility (1Y) Calculated over the trailing 1-year period	21.62%	14.77%	+6.85%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	27.36%	18.07%	+9.29%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	29.85%	20.89%	+8.96%

KBE vs. IAK - Expense Ratio Comparison

KBE has a 0.35% expense ratio, which is lower than IAK's 0.43% expense ratio.

Dividends

KBE vs. IAK - Dividend Comparison

KBE's dividend yield for the trailing twelve months is around 2.39%, less than IAK's 2.76% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IAK iShares U.S. Insurance ETF	2.76%	1.69%	1.49%	1.44%	1.69%	2.26%	2.07%	1.84%	2.33%	1.62%	1.68%	1.62%
KBE SPDR S&P Bank ETF	2.39%	2.51%	2.35%	2.78%	2.99%	2.16%	2.44%	2.33%	2.18%	1.36%	1.39%	1.70%

Frequently Asked Questions

Can I hold both KBE and IAK in my portfolio?

KBE and IAK have a correlation of 0.53, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, KBE or IAK?

KBE has higher volatility (5.65%) compared to IAK (3.82%). In terms of maximum drawdown, KBE dropped -83.15% vs IAK's -77.38%.

Which ETF is better, KBE or IAK?

On 10-year performance, IAK leads with 11.66% vs 9.19% for KBE. On fees, KBE is cheaper at 0.35% per year. On volatility, IAK has been the lower-risk option at 3.82%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, KBE or IAK?

Over the 10-year period, IAK has performed better with a 11.66% return vs 9.19%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, KBE or IAK?

KBE is cheaper with a 0.35% expense ratio, compared with 0.43% for IAK.

Which ETF pays a higher dividend yield, KBE or IAK?

IAK has the higher dividend yield at 2.76%, compared with 2.39% for KBE.

What is the main difference between KBE and IAK?

KBE tracks S&P Banks Select Industry Index, while IAK tracks Dow Jones U.S. Select Insurance Index. They also come from different issuers: State Street and iShares. Their fees differ too: 0.35% for KBE and 0.43% for IAK.

Which has better risk-adjusted returns?

KBE currently has the higher Sharpe Ratio (0.87 vs -0.28), 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.