KBWD vs. IAK

Last updated Jun 4, 2026

KBWD (Invesco KBW High Dividend Yield Financial ETF) and IAK (iShares U.S. Insurance ETF) are both Financials Equities funds - KBWD tracks the KBW Nasdaq Financial Sector Dividend Yield Index while IAK tracks the Dow Jones U.S. Select Insurance Index. Both are passively managed. Over the past 10 years, KBWD returned 4.82%/yr vs 11.66%/yr for IAK. A 0.65 correlation means they provide meaningful diversification when combined. KBWD charges 1.24%/yr vs 0.43%/yr for IAK.

Performance

KBWD vs. IAK - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco KBW High Dividend Yield Financial ETF (KBWD) 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, KBWD achieves a -5.52% return, which is significantly lower than IAK's -4.56% return. Over the past 10 years, KBWD has underperformed IAK with an annualized return of 4.82%, while IAK has yielded a comparatively higher 11.66% annualized return.

KBWD

• 1D: -2.44%
• 1M: -7.64%
• YTD: -5.52%
• 6M: -6.05%
• 1Y: 2.58%
• 3Y*: 6.15%
• 5Y*: 0.13%
• 10Y*: 4.82%

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)

KBWD vs. IAK - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
KBWD Invesco KBW High Dividend Yield Financial ETF	-5.52%	5.59%	4.30%	20.21%	-19.14%	31.89%	-15.58%	20.72%	-8.70%	12.06%
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 KBWD and IAK is 0.35, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.35
Correlation (3Y) Calculated over the trailing 3-year period	0.42
Correlation (5Y) Calculated over the trailing 5-year period	0.56
Correlation (10Y) Calculated over the trailing 10-year period	0.62
Correlation (All Time) Calculated using the full available price history since Dec 3, 2010	0.65

Over the past year, the correlation between KBWD and IAK has dropped to 0.35 - well below their long-term average of 0.65, suggesting their price drivers have been diverging.

KBWD vs. IAK - Sectors Allocation Comparison

Sectors	KBWD	IAK
Financial Services	60.9%	99.5%
Real Estate	39.1%	-
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	0.5%
Industrials	-	-
Technology	-	-
Utilities	-	-

Return for Risk

KBWD vs. IAK — Risk / Return Rank

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

KBWD

KBWD Risk / Return Rank: 10
KBWD Sharpe Ratio Rank: 11
KBWD Sortino Ratio Rank: 10
KBWD Omega Ratio Rank: 10
KBWD Calmar Ratio Rank: 11
KBWD Martin Ratio Rank: 11

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.

KBWD vs. IAK - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco KBW High Dividend Yield Financial ETF (KBWD) 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.

	KBWD	IAK	Difference
Sharpe ratio Return per unit of total volatility	0.17	-0.28	+0.45
Sortino ratio Return per unit of downside risk	0.34	-0.29	+0.63
Omega ratio Gain probability vs. loss probability	1.04	0.97	+0.07
Calmar ratio Return relative to maximum drawdown	0.17	-0.55	+0.72
Martin ratio Return relative to average drawdown	0.45	-1.14	+1.59
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

KBWD vs. IAK - Sharpe Ratio Comparison

The current KBWD Sharpe Ratio is 0.17, which is higher than the IAK Sharpe Ratio of -0.28. The chart below compares the historical Sharpe Ratios of KBWD 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

	KBWD	IAK	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.17	-0.28	+0.45
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.01	0.64	-0.63
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.21	0.56	-0.35
Sharpe Ratio (All Time) Calculated using the full available price history	0.27	0.26	+0.01

Drawdowns

KBWD vs. IAK - Drawdown Comparison

The maximum KBWD drawdown since its inception was -58.63%, smaller than the maximum IAK drawdown of -77.38%. Use the drawdown chart below to compare losses from any high point for KBWD and IAK.

Drawdown Indicators

	KBWD	IAK	Difference
Max Drawdown Largest peak-to-trough decline	-58.63%	-77.38%	+18.75%
Max Drawdown (1Y) Largest decline over 1 year	-15.05%	-7.62%	-7.43%
Max Drawdown (3Y) Largest decline over 3 years	-19.65%	-11.58%	-8.07%
Max Drawdown (5Y) Largest decline over 5 years	-30.74%	-14.76%	-15.98%
Max Drawdown (10Y) Largest decline over 10 years	-58.63%	-44.95%	-13.68%
Current Drawdown Current decline from peak	-12.23%	-5.82%	-6.41%
Average Drawdown Average peak-to-trough decline	-7.41%	-16.13%	+8.72%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.80%	3.96%	+1.84%

Volatility

KBWD vs. IAK - Volatility Comparison

Invesco KBW High Dividend Yield Financial ETF (KBWD) and iShares U.S. Insurance ETF (IAK) have volatilities of 3.94% and 3.82%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	KBWD	IAK	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.94%	3.82%	+0.12%
Volatility (6M) Calculated over the trailing 6-month period	12.09%	9.98%	+2.11%
Volatility (1Y) Calculated over the trailing 1-year period	15.41%	14.77%	+0.64%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.85%	18.07%	+1.78%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.24%	20.89%	+2.35%

KBWD vs. IAK - Expense Ratio Comparison

KBWD has a 1.24% expense ratio, which is higher than IAK's 0.43% expense ratio.

Dividends

KBWD vs. IAK - Dividend Comparison

KBWD's dividend yield for the trailing twelve months is around 14.40%, more 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%
KBWD Invesco KBW High Dividend Yield Financial ETF	14.40%	12.83%	12.45%	11.45%	11.32%	7.26%	9.68%	8.63%	9.47%	8.77%	8.68%	8.89%

Frequently Asked Questions

Can I hold both KBWD and IAK in my portfolio?

KBWD and IAK have a correlation of 0.35, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, KBWD or IAK?

KBWD has higher volatility (3.94%) compared to IAK (3.82%). In terms of maximum drawdown, KBWD dropped -58.63% vs IAK's -77.38%.

Which ETF is better, KBWD or IAK?

On 10-year performance, IAK leads with 11.66% vs 4.82% for KBWD. On fees, IAK is cheaper at 0.43% 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, KBWD or IAK?

Over the 10-year period, IAK has performed better with a 11.66% return vs 4.82%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, KBWD or IAK?

IAK is cheaper with a 0.43% expense ratio, compared with 1.24% for KBWD.

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

KBWD has the higher dividend yield at 14.40%, compared with 2.76% for IAK.

What is the main difference between KBWD and IAK?

KBWD tracks KBW Nasdaq Financial Sector Dividend Yield Index, while IAK tracks Dow Jones U.S. Select Insurance Index. They also come from different issuers: Invesco and iShares. Their fees differ too: 1.24% for KBWD and 0.43% for IAK.

Which has better risk-adjusted returns?

KBWD currently has the higher Sharpe Ratio (0.17 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.