XLF vs. IAK

Last updated Jun 4, 2026

XLF (State Street Financial Select Sector SPDR ETF) and IAK (iShares U.S. Insurance ETF) are both Financials Equities funds - XLF tracks the Financial Select Sector Index while IAK tracks the Dow Jones U.S. Select Insurance Index. Both are passively managed. Over the past 10 years, XLF returned 12.38%/yr vs 11.66%/yr for IAK. Their correlation of 0.84 suggests significant overlap in exposure. XLF charges 0.08%/yr vs 0.43%/yr for IAK.

Performance

XLF vs. IAK - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in State Street Financial Select Sector SPDR ETF (XLF) 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, XLF achieves a -6.64% return, which is significantly lower than IAK's -4.56% return. Over the past 10 years, XLF has outperformed IAK with an annualized return of 12.38%, while IAK has yielded a comparatively lower 11.66% annualized return.

XLF

• 1D: -1.15%
• 1M: -1.38%
• YTD: -6.64%
• 6M: -4.18%
• 1Y: 1.13%
• 3Y*: 17.64%
• 5Y*: 7.61%
• 10Y*: 12.38%

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)

XLF vs. IAK - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XLF State Street Financial Select Sector SPDR ETF	-6.64%	14.90%	30.56%	12.03%	-10.59%	34.80%	-1.74%	31.88%	-13.06%	22.00%
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 XLF and IAK is 0.59, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.59
Correlation (3Y) Calculated over the trailing 3-year period	0.69
Correlation (5Y) Calculated over the trailing 5-year period	0.78
Correlation (10Y) Calculated over the trailing 10-year period	0.82
Correlation (All Time) Calculated using the full available price history since May 8, 2006	0.84

Over the past year, the correlation between XLF and IAK has dropped to 0.59 - well below their long-term average of 0.84, suggesting their price drivers have been diverging.

XLF vs. IAK - Sectors Allocation Comparison

Sectors	XLF	IAK
Financial Services	98.0%	99.5%
Technology	1.8%	-
Industrials	0.2%	-
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	0.5%
Real Estate	-	-
Utilities	-	-

Return for Risk

XLF vs. IAK — Risk / Return Rank

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

XLF

XLF Risk / Return Rank: 9
XLF Sharpe Ratio Rank: 9
XLF Sortino Ratio Rank: 9
XLF Omega Ratio Rank: 9
XLF Calmar Ratio Rank: 9
XLF Martin Ratio Rank: 9

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.

XLF vs. IAK - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for State Street Financial Select Sector SPDR ETF (XLF) 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.

	XLF	IAK	Difference
Sharpe ratio: Return per unit of total volatility	0.08	-0.28	+0.36
Sortino ratio: Return per unit of downside risk	0.20	-0.29	+0.49
Omega ratio: Gain probability vs. loss probability	1.02	0.97	+0.06
Calmar ratio: Return relative to maximum drawdown	0.08	-0.55	+0.62
Martin ratio: Return relative to average drawdown	0.20	-1.14	+1.34
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

XLF vs. IAK - Sharpe Ratio Comparison

The current XLF Sharpe Ratio is 0.08, which is higher than the IAK Sharpe Ratio of -0.28. The chart below compares the historical Sharpe Ratios of XLF 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

	XLF	IAK	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.08	-0.28	+0.36
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.41	0.64	-0.23
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.56	0.56	0.00
Sharpe Ratio (All Time) Calculated using the full available price history	0.20	0.26	-0.06

Drawdowns

XLF vs. IAK - Drawdown Comparison

The maximum XLF drawdown since its inception was -82.69%, which is greater than IAK's maximum drawdown of -77.38%. Use the drawdown chart below to compare losses from any high point for XLF and IAK.

Drawdown Indicators

	XLF	IAK	Difference
Max Drawdown Largest peak-to-trough decline	-82.69%	-77.38%	-5.31%
Max Drawdown (1Y) Largest decline over 1 year	-14.79%	-7.62%	-7.17%
Max Drawdown (3Y) Largest decline over 3 years	-15.54%	-11.58%	-3.96%
Max Drawdown (5Y) Largest decline over 5 years	-25.81%	-14.76%	-11.05%
Max Drawdown (10Y) Largest decline over 10 years	-42.86%	-44.95%	+2.09%
Current Drawdown Current decline from peak	-9.34%	-5.82%	-3.52%
Average Drawdown Average peak-to-trough decline	-20.03%	-16.13%	-3.90%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.66%	3.96%	+1.70%

Volatility

XLF vs. IAK - Volatility Comparison

The current volatility for State Street Financial Select Sector SPDR ETF (XLF) is 3.29%, while iShares U.S. Insurance ETF (IAK) has a volatility of 3.82%. This indicates that XLF 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

	XLF	IAK	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.29%	3.82%	-0.53%
Volatility (6M) Calculated over the trailing 6-month period	10.94%	9.98%	+0.96%
Volatility (1Y) Calculated over the trailing 1-year period	14.41%	14.77%	-0.36%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.63%	18.07%	+0.56%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.16%	20.89%	+1.27%

XLF vs. IAK - Expense Ratio Comparison

XLF has a 0.08% expense ratio, which is lower than IAK's 0.43% expense ratio.

Dividends

XLF vs. IAK - Dividend Comparison

XLF's dividend yield for the trailing twelve months is around 1.56%, 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%
XLF State Street Financial Select Sector SPDR ETF	1.56%	1.31%	1.42%	1.71%	2.04%	1.63%	2.03%	1.87%	2.08%	1.48%	21.10%	1.95%

Frequently Asked Questions

Can I hold both XLF and IAK in my portfolio?

XLF and IAK have a correlation of 0.59, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XLF or IAK?

IAK has higher volatility (3.82%) compared to XLF (3.29%). In terms of maximum drawdown, XLF dropped -82.69% vs IAK's -77.38%.

Which ETF is better, XLF or IAK?

On 10-year performance, XLF leads with 12.38% vs 11.66% for IAK. On fees, XLF is cheaper at 0.08% per year. On volatility, XLF has been the lower-risk option at 3.29%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XLF or IAK?

Over the 10-year period, XLF has performed better with a 12.38% return vs 11.66%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XLF or IAK?

XLF is cheaper with a 0.08% expense ratio, compared with 0.43% for IAK.

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

IAK has the higher dividend yield at 2.76%, compared with 1.56% for XLF.

What is the main difference between XLF and IAK?

XLF tracks Financial Select Sector 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: 0.08% for XLF and 0.43% for IAK.

Which has better risk-adjusted returns?

XLF currently has the higher Sharpe Ratio (0.08 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.