VPU vs. IAK

Last updated Jul 26, 2026

VPU (Vanguard Utilities ETF) and IAK (iShares U.S. Insurance ETF) are both exchange-traded funds - VPU is a Utilities Equities fund tracking the MSCI US Investable Market Utilities 25/50 Index, while IAK is a Financials Equities fund tracking the Dow Jones U.S. Select Insurance Index. Both are passively managed. Over the past 10 years, VPU returned 9.11%/yr vs 13.33%/yr for IAK. Their 0.45 correlation means their historical movements had little consistent relationship. VPU charges 0.09%/yr vs 0.38%/yr for IAK.

Performance

VPU vs. IAK - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Utilities ETF (VPU) 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, VPU achieves a 9.23% return, which is significantly lower than IAK's 10.81% return. Over the past 10 years, VPU has underperformed IAK with an annualized return of 9.11%, while IAK has yielded a comparatively higher 13.33% annualized return.

VPU

• 1D: 0.02%
• 1M: 0.66%
• 6M: 9.17%
• YTD: 9.23%
• 1Y: 12.20%
• 3Y*: 13.78%
• 5Y*: 10.11%
• 10Y*: 9.11%
• ALL TIME*: 9.93%

IAK

• 1D: 2.11%
• 1M: 7.61%
• 6M: 16.12%
• YTD: 10.81%
• 1Y: 17.49%
• 3Y*: 20.39%
• 5Y*: 16.26%
• 10Y*: 13.33%
• ALL TIME*: 7.43%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
IAK iShares U.S. Insurance ETF	$21.27M	$20.97M	$10.82M
VPU Vanguard Utilities ETF	$39.94M	$42.60M	$42.54M

VPU vs. IAK - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VPU Vanguard Utilities ETF	9.23%	16.46%	23.04%	-7.45%	1.06%	17.40%	-0.74%	24.89%	4.38%	12.44%
IAK iShares U.S. Insurance ETF	10.81%	9.50%	28.25%	11.28%	11.33%	26.84%	-2.86%	25.94%	-11.48%	14.18%

Correlation

The correlation between VPU and IAK is 0.23, which is low. Their historical price movements had little consistent relationship.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.23
Correlation (3Y) Balances recent behavior with more history.	0.37
Correlation (5Y) Shows whether the relationship held over a longer period.	0.43
Correlation (10Y) Provides a long-term view across more market conditions.	0.38
Correlation (All Time) Calculated using the full available price history since May 5, 2006	0.45

Over the past year, the correlation between VPU and IAK has dropped to 0.23 - well below their long-term average of 0.45, suggesting their price drivers have been diverging.

VPU vs. IAK - Sectors Allocation Comparison

Sectors	VPU	IAK
Utilities	99.0%	-
Energy	0.4%	-
Industrials	0.2%	-
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Financial Services	-	99.3%
Healthcare	-	0.7%
Real Estate	-	-
Technology	-	-

Return for Risk

VPU vs. IAK — Risk / Return Rank

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

VPU

VPU Risk / Return Rank: 34
VPU Sharpe Ratio Rank: 35
VPU Sortino Ratio Rank: 33
VPU Omega Ratio Rank: 32
VPU Calmar Ratio Rank: 40
VPU Martin Ratio Rank: 32

IAK

IAK Risk / Return Rank: 52
IAK Sharpe Ratio Rank: 48
IAK Sortino Ratio Rank: 48
IAK Omega Ratio Rank: 46
IAK Calmar Ratio Rank: 68
IAK Martin Ratio Rank: 51

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.

VPU vs. IAK - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Utilities ETF (VPU) 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.

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.

	VPU	IAK	Difference
Sharpe ratio: Return per unit of total volatility	0.85	1.16	-0.30
Sortino ratio: Return per unit of downside risk	1.24	1.70	-0.46
Omega ratio: Gain probability vs. loss probability	1.15	1.21	-0.05
Calmar ratio: Return relative to maximum drawdown	1.41	2.41	-1.00
Martin ratio: Return relative to average drawdown	2.92	5.86	-2.94

VPU vs. IAK - Sharpe Ratio Comparison

The current VPU Sharpe Ratio is 0.85, which is comparable to the IAK Sharpe Ratio of 1.16. The chart below compares the historical Sharpe Ratios of VPU 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.

Drawdowns

VPU vs. IAK - Drawdown Comparison

The maximum VPU drawdown since its inception was -46.31%, smaller than the maximum IAK drawdown of -77.38%. Use the drawdown chart below to compare losses from any high point for VPU and IAK.

Drawdown Indicators

	VPU	IAK	Difference
Max Drawdown Largest peak-to-trough decline	-46.31%	-77.38%	+31.07%
Max Drawdown (1Y) Largest decline over 1 year	-8.90%	-7.62%	-1.28%
Max Drawdown (3Y) Largest decline over 3 years	-15.78%	-11.58%	-4.20%
Max Drawdown (5Y) Largest decline over 5 years	-25.15%	-14.76%	-10.39%
Max Drawdown (10Y) Largest decline over 10 years	-36.42%	-44.95%	+8.53%
Current Drawdown Current decline from peak	-1.82%	0.00%	-1.82%
Average Drawdown Average peak-to-trough decline	-7.76%	-16.03%	+8.27%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.28%	3.13%	+1.15%

Volatility

VPU vs. IAK - Volatility Comparison

The current volatility for Vanguard Utilities ETF (VPU) is 4.49%, while iShares U.S. Insurance ETF (IAK) has a volatility of 7.15%. This indicates that VPU experiences smaller price fluctuations and is considered to be less risky than IAK based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VPU	IAK	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.49%	7.15%	-2.66%
Volatility (6M) Calculated over the trailing 6-month period	11.68%	12.11%	-0.43%
Volatility (1Y) Calculated over the trailing 1-year period	14.64%	15.87%	-1.23%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.05%	18.09%	-1.04%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.15%	20.90%	-1.75%

VPU vs. IAK - Expense Ratio Comparison

VPU has a 0.09% expense ratio, which is lower than IAK's 0.38% expense ratio.

Dividends

VPU vs. IAK - Dividend Comparison

VPU's dividend yield for the trailing twelve months is around 2.59%, more than IAK's 2.41% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IAK iShares U.S. Insurance ETF	2.41%	1.69%	1.49%	1.44%	1.69%	2.26%	2.07%	1.84%	2.33%	1.62%	1.68%	1.62%
VPU Vanguard Utilities ETF	2.59%	2.73%	3.02%	3.49%	2.98%	2.70%	3.17%	2.83%	3.23%	3.18%	3.19%	3.63%

Frequently Asked Questions

Can I hold both VPU and IAK in my portfolio?

VPU and IAK have a correlation of 0.23, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VPU or IAK?

IAK has higher volatility (7.15%) compared to VPU (4.49%). In terms of maximum drawdown, VPU dropped -46.31% vs IAK's -77.38%.

Which ETF is better, VPU or IAK?

On 10-year performance, IAK leads with 13.33% vs 9.11% for VPU. On fees, VPU is cheaper at 0.09% per year. On volatility, VPU has been the lower-risk option at 4.49%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VPU or IAK?

Over the 10-year period, IAK has performed better with a 13.33% return vs 9.11%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VPU or IAK?

VPU is cheaper with a 0.09% expense ratio, compared with 0.38% for IAK.

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

VPU has the higher dividend yield at 2.59%, compared with 2.41% for IAK.

What is the main difference between VPU and IAK?

VPU is categorized as Utilities Equities, while IAK is Financials Equities. VPU tracks MSCI US Investable Market Utilities 25/50 Index, while IAK tracks Dow Jones U.S. Select Insurance Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.09% for VPU and 0.38% for IAK.

Which has better risk-adjusted returns?

IAK currently has the higher Sharpe Ratio (1.16 vs 0.85), 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.