KCE vs. IAI

Last updated Jun 23, 2026

KCE (SPDR S&P Capital Markets ETF) and IAI (iShares U.S. Broker-Dealers & Securities Exchanges ETF) are both Financials Equities funds - KCE tracks the S&P Capital Markets Select Industry Index while IAI tracks the Dow Jones U.S. Select Investment Services Index. Both are passively managed. Over the past 10 years, KCE returned 18.10%/yr vs 19.89%/yr for IAI. Their correlation of 0.93 suggests significant overlap in exposure. KCE charges 0.35%/yr vs 0.38%/yr for IAI.

Performance

KCE vs. IAI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SPDR S&P Capital Markets ETF (KCE) and iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, KCE achieves a 3.75% return, which is significantly lower than IAI's 4.80% return. Over the past 10 years, KCE has underperformed IAI with an annualized return of 18.10%, while IAI has yielded a comparatively higher 19.89% annualized return.

KCE

• 1D: -0.09%
• 1M: 1.69%
• YTD: 3.75%
• 6M: 1.86%
• 1Y: 14.65%
• 3Y*: 25.85%
• 5Y*: 12.91%
• 10Y*: 18.10%

IAI

• 1D: 0.32%
• 1M: 4.05%
• YTD: 4.80%
• 6M: 2.83%
• 1Y: 18.98%
• 3Y*: 30.15%
• 5Y*: 15.34%
• 10Y*: 19.89%

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

KCE vs. IAI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
KCE SPDR S&P Capital Markets ETF	3.75%	10.76%	37.51%	32.04%	-22.14%	40.05%	30.82%	27.13%	-15.63%	32.01%
IAI iShares U.S. Broker-Dealers & Securities Exchanges ETF	4.80%	25.80%	34.37%	15.27%	-10.87%	40.48%	18.61%	24.26%	-9.47%	28.86%

Correlation

The correlation between KCE and IAI is 0.89, 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	0.89
Correlation (3Y) Calculated over the trailing 3-year period	0.91
Correlation (5Y) Calculated over the trailing 5-year period	0.91
Correlation (10Y) Calculated over the trailing 10-year period	0.91
Correlation (All Time) Calculated using the full available price history since May 5, 2006	0.93

The correlation between KCE and IAI has been stable across timeframes, ranging from 0.89 to 0.93 - a consistent structural relationship.

KCE vs. IAI - Sectors Allocation Comparison

Sectors	KCE	IAI
Financial Services	98.8%	99.9%
Technology	1.2%	0.1%
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	-
Industrials	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

KCE vs. IAI — Risk / Return Rank

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

KCE

KCE Risk / Return Rank: 20
KCE Sharpe Ratio Rank: 22
KCE Sortino Ratio Rank: 20
KCE Omega Ratio Rank: 20
KCE Calmar Ratio Rank: 19
KCE Martin Ratio Rank: 20

IAI

IAI Risk / Return Rank: 26
IAI Sharpe Ratio Rank: 28
IAI Sortino Ratio Rank: 27
IAI Omega Ratio Rank: 26
IAI Calmar Ratio Rank: 25
IAI 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.

KCE vs. IAI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR S&P Capital Markets ETF (KCE) and iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI). 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.

	KCE	IAI	Difference
Sharpe ratio: Return per unit of total volatility	0.74	0.99	-0.25
Sortino ratio: Return per unit of downside risk	1.11	1.42	-0.30
Omega ratio: Gain probability vs. loss probability	1.14	1.17	-0.04
Calmar ratio: Return relative to maximum drawdown	0.84	1.15	-0.31
Martin ratio: Return relative to average drawdown	2.19	3.28	-1.09

KCE vs. IAI - Sharpe Ratio Comparison

The current KCE Sharpe Ratio is 0.74, which is comparable to the IAI Sharpe Ratio of 0.99. The chart below compares the historical Sharpe Ratios of KCE and IAI, 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

KCE vs. IAI - Drawdown Comparison

The maximum KCE drawdown since its inception was -74.00%, roughly equal to the maximum IAI drawdown of -75.46%. Use the drawdown chart below to compare losses from any high point for KCE and IAI.

Drawdown Indicators

	KCE	IAI	Difference
Max Drawdown Largest peak-to-trough decline	-74.00%	-75.46%	+1.46%
Max Drawdown (1Y) Largest decline over 1 year	-17.44%	-16.52%	-0.92%
Max Drawdown (3Y) Largest decline over 3 years	-26.31%	-23.14%	-3.17%
Max Drawdown (5Y) Largest decline over 5 years	-34.45%	-28.84%	-5.61%
Max Drawdown (10Y) Largest decline over 10 years	-40.78%	-40.38%	-0.40%
Current Drawdown Current decline from peak	-3.67%	-1.27%	-2.40%
Average Drawdown Average peak-to-trough decline	-22.76%	-22.61%	-0.15%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.71%	5.80%	+0.91%

Volatility

KCE vs. IAI - Volatility Comparison

SPDR S&P Capital Markets ETF (KCE) and iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI) have volatilities of 5.60% and 5.58%, 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

	KCE	IAI	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.60%	5.58%	+0.02%
Volatility (6M) Calculated over the trailing 6-month period	15.28%	15.38%	-0.10%
Volatility (1Y) Calculated over the trailing 1-year period	19.98%	19.32%	+0.66%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.05%	21.42%	+1.63%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.09%	22.85%	+0.24%

KCE vs. IAI - Expense Ratio Comparison

KCE has a 0.35% expense ratio, which is lower than IAI's 0.38% expense ratio.

Dividends

KCE vs. IAI - Dividend Comparison

KCE's dividend yield for the trailing twelve months is around 2.13%, more than IAI's 1.10% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IAI iShares U.S. Broker-Dealers & Securities Exchanges ETF	1.10%	0.95%	1.05%	1.80%	2.14%	1.31%	1.55%	1.52%	1.58%	1.37%	1.49%	1.31%
KCE SPDR S&P Capital Markets ETF	1.74%	1.63%	1.56%	1.82%	2.42%	1.53%	2.20%	2.32%	2.67%	1.95%	2.30%	2.43%

Frequently Asked Questions

Can I hold both KCE and IAI in my portfolio?

KCE and IAI have a correlation of 0.89, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, KCE or IAI?

KCE has higher volatility (5.60%) compared to IAI (5.58%). In terms of maximum drawdown, KCE dropped -74.00% vs IAI's -75.46%.

Which ETF is better, KCE or IAI?

On 10-year performance, IAI leads with 19.89% vs 18.10% for KCE. On fees, KCE is cheaper at 0.35% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, KCE or IAI?

Over the 10-year period, IAI has performed better with a 19.89% return vs 18.10%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, KCE or IAI?

KCE is cheaper with a 0.35% expense ratio, compared with 0.38% for IAI.

Which ETF pays a higher dividend yield, KCE or IAI?

KCE has the higher dividend yield at 2.13%, compared with 1.10% for IAI.

What is the main difference between KCE and IAI?

KCE tracks S&P Capital Markets Select Industry Index, while IAI tracks Dow Jones U.S. Select Investment Services Index. They also come from different issuers: State Street and iShares. Their fees differ too: 0.35% for KCE and 0.38% for IAI.

Which has better risk-adjusted returns?

IAI currently has the higher Sharpe Ratio (0.99 vs 0.74), 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.