SHLD vs. IAI

Last updated Jun 13, 2026

SHLD (Global X Defense Tech ETF) and IAI (iShares U.S. Broker-Dealers & Securities Exchanges ETF) are both exchange-traded funds - SHLD is a Aerospace & Defense fund tracking the Global X Defense Tech Index, while IAI is a Financials Equities fund tracking the DJ US Select / Investment Services. Both are passively managed. Over the past year, SHLD returned 10.40% vs 19.26% for IAI. At a 0.48 correlation, their price movements are largely independent. SHLD charges 0.50%/yr vs 0.41%/yr for IAI.

Performance

SHLD vs. IAI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Global X Defense Tech ETF (SHLD) 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, SHLD achieves a -1.50% return, which is significantly lower than IAI's 3.17% return.

SHLD

• 1D: -2.04%
• 1M: 0.05%
• YTD: -1.50%
• 6M: -1.03%
• 1Y: 10.40%
• 3Y*: —
• 5Y*: —
• 10Y*: —

IAI

• 1D: 1.83%
• 1M: 3.22%
• YTD: 3.17%
• 6M: 2.78%
• 1Y: 19.26%
• 3Y*: 28.06%
• 5Y*: 14.44%
• 10Y*: 19.37%

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

SHLD vs. IAI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
SHLD Global X Defense Tech ETF	-1.50%	74.16%	35.03%	12.89%
IAI iShares U.S. Broker-Dealers & Securities Exchanges ETF	3.17%	25.80%	34.37%	15.20%

Correlation

The correlation between SHLD and IAI is 0.42, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.42
Correlation (All Time) Calculated using the full available price history since Sep 13, 2023	0.48

SHLD vs. IAI - Sectors Allocation Comparison

Sectors	SHLD	IAI
Industrials	88.2%	-
Technology	11.8%	0.1%
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	99.9%
Healthcare	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

SHLD vs. IAI — Risk / Return Rank

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

SHLD

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

IAI

IAI Risk / Return Rank: 29
IAI Sharpe Ratio Rank: 31
IAI Sortino Ratio Rank: 30
IAI Omega Ratio Rank: 29
IAI Calmar Ratio Rank: 27
IAI Martin Ratio Rank: 27

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.

SHLD vs. IAI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Global X Defense Tech ETF (SHLD) 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.

	SHLD	IAI	Difference
Sharpe ratio: Return per unit of total volatility	0.43	1.00	-0.57
Sortino ratio: Return per unit of downside risk	0.78	1.43	-0.65
Omega ratio: Gain probability vs. loss probability	1.09	1.18	-0.09
Calmar ratio: Return relative to maximum drawdown	0.52	1.17	-0.65
Martin ratio: Return relative to average drawdown	1.28	3.33	-2.04

SHLD vs. IAI - Sharpe Ratio Comparison

The current SHLD Sharpe Ratio is 0.43, which is lower than the IAI Sharpe Ratio of 1.00. The chart below compares the historical Sharpe Ratios of SHLD 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

SHLD vs. IAI - Drawdown Comparison

The maximum SHLD drawdown since its inception was -20.10%, smaller than the maximum IAI drawdown of -75.46%. Use the drawdown chart below to compare losses from any high point for SHLD and IAI.

Drawdown Indicators

	SHLD	IAI	Difference
Max Drawdown Largest peak-to-trough decline	-20.10%	-75.46%	+55.36%
Max Drawdown (1Y) Largest decline over 1 year	-20.10%	-16.52%	-3.58%
Max Drawdown (3Y) Largest decline over 3 years	—	-23.14%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-28.84%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-40.38%	—
Current Drawdown Current decline from peak	-18.20%	-2.81%	-15.39%
Average Drawdown Average peak-to-trough decline	-3.34%	-22.63%	+19.29%
Ulcer Index Depth and duration of drawdowns from previous peaks	8.12%	5.80%	+2.32%

Volatility

SHLD vs. IAI - Volatility Comparison

Global X Defense Tech ETF (SHLD) has a higher volatility of 9.05% compared to iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI) at 5.98%. This indicates that SHLD's price experiences larger fluctuations and is considered to be riskier than IAI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SHLD	IAI	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.05%	5.98%	+3.07%
Volatility (6M) Calculated over the trailing 6-month period	19.94%	15.34%	+4.60%
Volatility (1Y) Calculated over the trailing 1-year period	24.55%	19.44%	+5.11%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.29%	21.48%	-0.19%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.29%	22.85%	-1.56%

SHLD vs. IAI - Expense Ratio Comparison

SHLD has a 0.50% expense ratio, which is higher than IAI's 0.41% expense ratio.

Dividends

SHLD vs. IAI - Dividend Comparison

SHLD's dividend yield for the trailing twelve months is around 0.56%, less than IAI's 1.05% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IAI iShares U.S. Broker-Dealers & Securities Exchanges ETF	1.05%	0.95%	1.05%	1.80%	2.14%	1.31%	1.55%	1.52%	1.58%	1.37%	1.49%	1.31%
SHLD Global X Defense Tech ETF	0.56%	0.55%	0.53%	0.26%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both SHLD and IAI in my portfolio?

SHLD and IAI have a correlation of 0.42, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SHLD or IAI?

SHLD has higher volatility (9.05%) compared to IAI (5.98%). In terms of maximum drawdown, SHLD dropped -20.10% vs IAI's -75.46%.

Which ETF is better, SHLD or IAI?

On 1-year performance, IAI leads with 19.26% vs 10.40% for SHLD. On fees, IAI is cheaper at 0.41% per year. On volatility, IAI has been the lower-risk option at 5.98%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SHLD or IAI?

Over the 1-year period, IAI has performed better with a 19.26% return vs 10.40%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SHLD or IAI?

IAI is cheaper with a 0.41% expense ratio, compared with 0.50% for SHLD.

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

IAI has the higher dividend yield at 1.05%, compared with 0.56% for SHLD.

What is the main difference between SHLD and IAI?

SHLD is categorized as Aerospace & Defense, while IAI is Financials Equities. SHLD tracks Global X Defense Tech Index, while IAI tracks DJ US Select / Investment Services. They also come from different issuers: Global X and iShares. Their fees differ too: 0.50% for SHLD and 0.41% for IAI.

Which has better risk-adjusted returns?

IAI currently has the higher Sharpe Ratio (1.00 vs 0.43), 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.