KBE vs. IAT

Last updated Jun 4, 2026

KBE (SPDR S&P Bank ETF) and IAT (iShares U.S. Regional Banks ETF) are both Financials Equities funds - KBE tracks the S&P Banks Select Industry Index while IAT tracks the Dow Jones U.S. Select Regional Banks Index. Both are passively managed. Over the past 10 years, KBE returned 9.19%/yr vs 7.95%/yr for IAT. With a 0.97 correlation, they move nearly in lockstep. KBE charges 0.35%/yr vs 0.42%/yr for IAT.

Performance

KBE vs. IAT - 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. Regional Banks ETF (IAT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with KBE having a 2.87% return and IAT slightly lower at 2.80%. Over the past 10 years, KBE has outperformed IAT with an annualized return of 9.19%, while IAT has yielded a comparatively lower 7.95% 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%

IAT

• 1D: -1.71%
• 1M: -1.74%
• YTD: 2.80%
• 6M: 7.09%
• 1Y: 22.99%
• 3Y*: 22.20%
• 5Y*: 1.35%
• 10Y*: 7.95%

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

KBE vs. IAT - 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%
IAT iShares U.S. Regional Banks ETF	2.80%	13.05%	24.36%	-8.53%	-20.61%	38.89%	-7.60%	31.38%	-17.45%	10.42%

Correlation

The correlation between KBE and IAT is 0.95, 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	0.95
Correlation (3Y) Calculated over the trailing 3-year period	0.97
Correlation (5Y) Calculated over the trailing 5-year period	0.97
Correlation (10Y) Calculated over the trailing 10-year period	0.98
Correlation (All Time) Calculated using the full available price history since May 8, 2006	0.97

The correlation between KBE and IAT has been stable across timeframes, ranging from 0.95 to 0.98 - a consistent structural relationship.

KBE vs. IAT - Sectors Allocation Comparison

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

Return for Risk

KBE vs. IAT — 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

IAT

IAT Risk / Return Rank: 27
IAT Sharpe Ratio Rank: 29
IAT Sortino Ratio Rank: 28
IAT Omega Ratio Rank: 29
IAT Calmar Ratio Rank: 27
IAT Martin Ratio Rank: 25

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. IAT - 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. Regional Banks ETF (IAT). 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	IAT	Difference
Sharpe ratio Return per unit of total volatility	0.87	1.06	-0.19
Sortino ratio Return per unit of downside risk	1.32	1.52	-0.21
Omega ratio Gain probability vs. loss probability	1.17	1.20	-0.03
Calmar ratio Return relative to maximum drawdown	1.29	1.32	-0.03
Martin ratio Return relative to average drawdown	3.39	3.38	0.00
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. IAT - Sharpe Ratio Comparison

The current KBE Sharpe Ratio is 0.87, which is comparable to the IAT Sharpe Ratio of 1.06. The chart below compares the historical Sharpe Ratios of KBE and IAT, 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	IAT	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.87	1.06	-0.19
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.19	0.05	+0.15
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.31	0.26	+0.05
Sharpe Ratio (All Time) Calculated using the full available price history	0.10	0.10	0.00

Drawdowns

KBE vs. IAT - Drawdown Comparison

The maximum KBE drawdown since its inception was -83.15%, which is greater than IAT's maximum drawdown of -77.22%. Use the drawdown chart below to compare losses from any high point for KBE and IAT.

Drawdown Indicators

	KBE	IAT	Difference
Max Drawdown Largest peak-to-trough decline	-83.15%	-77.22%	-5.93%
Max Drawdown (1Y) Largest decline over 1 year	-14.63%	-17.49%	+2.86%
Max Drawdown (3Y) Largest decline over 3 years	-25.97%	-29.29%	+3.32%
Max Drawdown (5Y) Largest decline over 5 years	-45.25%	-55.55%	+10.30%
Max Drawdown (10Y) Largest decline over 10 years	-53.14%	-55.55%	+2.41%
Current Drawdown Current decline from peak	-7.38%	-9.75%	+2.37%
Average Drawdown Average peak-to-trough decline	-27.54%	-26.97%	-0.57%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.55%	6.81%	-1.26%

Volatility

KBE vs. IAT - Volatility Comparison

The current volatility for SPDR S&P Bank ETF (KBE) is 5.65%, while iShares U.S. Regional Banks ETF (IAT) has a volatility of 6.12%. This indicates that KBE experiences smaller price fluctuations and is considered to be less risky than IAT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	KBE	IAT	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.65%	6.12%	-0.47%
Volatility (6M) Calculated over the trailing 6-month period	14.93%	15.74%	-0.81%
Volatility (1Y) Calculated over the trailing 1-year period	21.62%	21.86%	-0.24%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	27.36%	29.03%	-1.67%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	29.85%	30.78%	-0.93%

KBE vs. IAT - Expense Ratio Comparison

KBE has a 0.35% expense ratio, which is lower than IAT's 0.42% expense ratio.

Dividends

KBE vs. IAT - Dividend Comparison

KBE's dividend yield for the trailing twelve months is around 2.39%, less than IAT's 2.88% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IAT iShares U.S. Regional Banks ETF	2.88%	2.94%	2.95%	3.56%	3.12%	1.88%	2.87%	2.49%	2.48%	1.55%	1.52%	1.78%
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 IAT in my portfolio?

With a correlation of 0.95, KBE and IAT 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, KBE or IAT?

IAT has higher volatility (6.12%) compared to KBE (5.65%). In terms of maximum drawdown, KBE dropped -83.15% vs IAT's -77.22%.

Which ETF is better, KBE or IAT?

On 10-year performance, KBE leads with 9.19% vs 7.95% for IAT. On fees, KBE is cheaper at 0.35% per year. On volatility, KBE has been the lower-risk option at 5.65%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, KBE or IAT?

Over the 10-year period, KBE has performed better with a 9.19% return vs 7.95%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, KBE or IAT?

KBE is cheaper with a 0.35% expense ratio, compared with 0.42% for IAT.

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

IAT has the higher dividend yield at 2.88%, compared with 2.39% for KBE.

What is the main difference between KBE and IAT?

KBE tracks S&P Banks Select Industry Index, while IAT tracks Dow Jones U.S. Select Regional Banks Index. They also come from different issuers: State Street and iShares. Their fees differ too: 0.35% for KBE and 0.42% for IAT.

Which has better risk-adjusted returns?

IAT currently has the higher Sharpe Ratio (1.06 vs 0.87), 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.