KCE vs. IAK

Last updated Jun 4, 2026

KCE (SPDR S&P Capital Markets ETF) and IAK (iShares U.S. Insurance ETF) are both Financials Equities funds - KCE tracks the S&P Capital Markets Select Industry Index while IAK tracks the Dow Jones U.S. Select Insurance Index. Both are passively managed. Over the past 10 years, KCE returned 16.37%/yr vs 11.66%/yr for IAK. A 0.75 correlation means they provide meaningful diversification when combined. KCE charges 0.35%/yr vs 0.43%/yr for IAK.

Performance

KCE vs. IAK - 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. Insurance ETF (IAK). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, KCE achieves a -1.07% return, which is significantly higher than IAK's -4.56% return. Over the past 10 years, KCE has outperformed IAK with an annualized return of 16.37%, while IAK has yielded a comparatively lower 11.66% annualized return.

KCE

• 1D: -1.85%
• 1M: -2.01%
• YTD: -1.07%
• 6M: 1.30%
• 1Y: 10.93%
• 3Y*: 23.82%
• 5Y*: 11.80%
• 10Y*: 16.37%

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)

KCE vs. IAK - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
KCE SPDR S&P Capital Markets ETF	-1.07%	10.76%	37.51%	32.04%	-22.14%	40.05%	30.82%	27.13%	-15.63%	32.01%
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 KCE and IAK is 0.34, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.34
Correlation (3Y) Calculated over the trailing 3-year period	0.45
Correlation (5Y) Calculated over the trailing 5-year period	0.58
Correlation (10Y) Calculated over the trailing 10-year period	0.67
Correlation (All Time) Calculated using the full available price history since May 8, 2006	0.75

Over the past year, the correlation between KCE and IAK has dropped to 0.34 - well below their long-term average of 0.75, suggesting their price drivers have been diverging.

KCE vs. IAK - Sectors Allocation Comparison

Sectors	KCE	IAK
Financial Services	98.5%	99.5%
Technology	1.5%	-
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	0.5%
Industrials	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

KCE vs. IAK — Risk / Return Rank

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

KCE

KCE Risk / Return Rank: 17
KCE Sharpe Ratio Rank: 17
KCE Sortino Ratio Rank: 17
KCE Omega Ratio Rank: 17
KCE Calmar Ratio Rank: 16
KCE Martin Ratio Rank: 17

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.

KCE vs. IAK - 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. 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.

	KCE	IAK	Difference
Sharpe ratio: Return per unit of total volatility	0.56	-0.28	+0.84
Sortino ratio: Return per unit of downside risk	0.87	-0.29	+1.16
Omega ratio: Gain probability vs. loss probability	1.11	0.97	+0.14
Calmar ratio: Return relative to maximum drawdown	0.63	-0.55	+1.18
Martin ratio: Return relative to average drawdown	1.65	-1.14	+2.80
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

KCE vs. IAK - Sharpe Ratio Comparison

The current KCE Sharpe Ratio is 0.56, which is higher than the IAK Sharpe Ratio of -0.28. The chart below compares the historical Sharpe Ratios of KCE 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

	KCE	IAK	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.56	-0.28	+0.84
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.52	0.64	-0.12
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.71	0.56	+0.15
Sharpe Ratio (All Time) Calculated using the full available price history	0.25	0.26	-0.01

Drawdowns

KCE vs. IAK - Drawdown Comparison

The maximum KCE drawdown since its inception was -74.00%, roughly equal to the maximum IAK drawdown of -77.38%. Use the drawdown chart below to compare losses from any high point for KCE and IAK.

Drawdown Indicators

	KCE	IAK	Difference
Max Drawdown Largest peak-to-trough decline	-74.00%	-77.38%	+3.38%
Max Drawdown (1Y) Largest decline over 1 year	-17.44%	-7.62%	-9.82%
Max Drawdown (3Y) Largest decline over 3 years	-26.31%	-11.58%	-14.73%
Max Drawdown (5Y) Largest decline over 5 years	-34.45%	-14.76%	-19.69%
Max Drawdown (10Y) Largest decline over 10 years	-40.78%	-44.95%	+4.17%
Current Drawdown Current decline from peak	-8.15%	-5.82%	-2.33%
Average Drawdown Average peak-to-trough decline	-22.81%	-16.13%	-6.68%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.63%	3.96%	+2.67%

Volatility

KCE vs. IAK - Volatility Comparison

SPDR S&P Capital Markets ETF (KCE) has a higher volatility of 4.24% compared to iShares U.S. Insurance ETF (IAK) at 3.82%. This indicates that KCE'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

	KCE	IAK	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.24%	3.82%	+0.42%
Volatility (6M) Calculated over the trailing 6-month period	14.98%	9.98%	+5.00%
Volatility (1Y) Calculated over the trailing 1-year period	19.69%	14.77%	+4.92%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.01%	18.07%	+4.94%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.10%	20.89%	+2.21%

KCE vs. IAK - Expense Ratio Comparison

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

Dividends

KCE vs. IAK - Dividend Comparison

KCE's dividend yield for the trailing twelve months is around 1.75%, 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%
KCE SPDR S&P Capital Markets ETF	1.75%	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 IAK in my portfolio?

KCE and IAK have a correlation of 0.34, 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 IAK?

KCE has higher volatility (4.24%) compared to IAK (3.82%). In terms of maximum drawdown, KCE dropped -74.00% vs IAK's -77.38%.

Which ETF is better, KCE or IAK?

On 10-year performance, KCE leads with 16.37% vs 11.66% for IAK. On fees, KCE 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, KCE or IAK?

Over the 10-year period, KCE has performed better with a 16.37% return vs 11.66%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, KCE or IAK?

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

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

IAK has the higher dividend yield at 2.76%, compared with 1.75% for KCE.

What is the main difference between KCE and IAK?

KCE tracks S&P Capital Markets 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 KCE and 0.43% for IAK.

Which has better risk-adjusted returns?

KCE currently has the higher Sharpe Ratio (0.56 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.