XLP vs. IAK

Last updated Jul 26, 2026

XLP (State Street Consumer Staples Select Sector SPDR ETF) and IAK (iShares U.S. Insurance ETF) are both exchange-traded funds - XLP is a Consumer Staples Equities fund tracking the Consumer Staples Select Sector 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, XLP returned 7.18%/yr vs 13.33%/yr for IAK. Their 0.55 correlation means they have sometimes moved together and sometimes differently. XLP charges 0.08%/yr vs 0.38%/yr for IAK.

Performance

XLP vs. IAK - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in State Street Consumer Staples Select Sector SPDR ETF (XLP) 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, XLP achieves a 9.67% return, which is significantly lower than IAK's 10.81% return. Over the past 10 years, XLP has underperformed IAK with an annualized return of 7.18%, while IAK has yielded a comparatively higher 13.33% annualized return.

XLP

• 1D: 1.11%
• 1M: 0.23%
• 6M: 2.75%
• YTD: 9.67%
• 1Y: 6.09%
• 3Y*: 6.34%
• 5Y*: 6.10%
• 10Y*: 7.18%
• ALL TIME*: 6.83%

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
XLP State Street Consumer Staples Select Sector SPDR ETF	$791.07M	$906.75M	$988.03M

XLP vs. IAK - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XLP State Street Consumer Staples Select Sector SPDR ETF	9.67%	1.52%	12.20%	-0.82%	-0.81%	17.20%	10.11%	27.43%	-8.07%	12.98%
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 XLP and IAK is 0.39, which is low. Their historical price movements had little consistent relationship.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.39
Correlation (3Y) Balances recent behavior with more history.	0.44
Correlation (5Y) Shows whether the relationship held over a longer period.	0.50
Correlation (10Y) Provides a long-term view across more market conditions.	0.48
Correlation (All Time) Calculated using the full available price history since May 5, 2006	0.55

The correlation between XLP and IAK shifts across timeframes, from 0.39 (1 year) to 0.55 (all time), reflecting how their relationship changes across market environments.

XLP vs. IAK - Sectors Allocation Comparison

Sectors	XLP	IAK
Consumer Defensive	98.1%	-
Consumer Cyclical	1.9%	-
Basic Materials	-	-
Communication Services	-	-
Energy	-	-
Financial Services	-	99.3%
Healthcare	-	0.7%
Industrials	-	-
Real Estate	-	-
Technology	-	-
Utilities	-	-

Return for Risk

XLP vs. IAK — Risk / Return Rank

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

XLP

XLP Risk / Return Rank: 22
XLP Sharpe Ratio Rank: 22
XLP Sortino Ratio Rank: 22
XLP Omega Ratio Rank: 20
XLP Calmar Ratio Rank: 23
XLP Martin Ratio Rank: 20

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.

XLP vs. IAK - Risk-Adjusted Trends Comparison

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

	XLP	IAK	Difference
Sharpe ratio: Return per unit of total volatility	0.45	1.16	-0.70
Sortino ratio: Return per unit of downside risk	0.76	1.70	-0.94
Omega ratio: Gain probability vs. loss probability	1.09	1.21	-0.12
Calmar ratio: Return relative to maximum drawdown	0.65	2.41	-1.76
Martin ratio: Return relative to average drawdown	1.18	5.86	-4.67

XLP vs. IAK - Sharpe Ratio Comparison

The current XLP Sharpe Ratio is 0.45, which is lower than the IAK Sharpe Ratio of 1.16. The chart below compares the historical Sharpe Ratios of XLP 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

XLP vs. IAK - Drawdown Comparison

The maximum XLP drawdown since its inception was -35.90%, smaller than the maximum IAK drawdown of -77.38%. Use the drawdown chart below to compare losses from any high point for XLP and IAK.

Drawdown Indicators

	XLP	IAK	Difference
Max Drawdown Largest peak-to-trough decline	-35.90%	-77.38%	+41.48%
Max Drawdown (1Y) Largest decline over 1 year	-9.69%	-7.62%	-2.07%
Max Drawdown (3Y) Largest decline over 3 years	-12.39%	-11.58%	-0.81%
Max Drawdown (5Y) Largest decline over 5 years	-16.30%	-14.76%	-1.54%
Max Drawdown (10Y) Largest decline over 10 years	-24.51%	-44.95%	+20.44%
Current Drawdown Current decline from peak	-5.35%	0.00%	-5.35%
Average Drawdown Average peak-to-trough decline	-7.05%	-16.03%	+8.98%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.31%	3.13%	+2.18%

Volatility

XLP vs. IAK - Volatility Comparison

The current volatility for State Street Consumer Staples Select Sector SPDR ETF (XLP) is 5.43%, while iShares U.S. Insurance ETF (IAK) has a volatility of 7.15%. This indicates that XLP 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

	XLP	IAK	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.43%	7.15%	-1.72%
Volatility (6M) Calculated over the trailing 6-month period	11.20%	12.11%	-0.91%
Volatility (1Y) Calculated over the trailing 1-year period	13.85%	15.87%	-2.02%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.54%	18.09%	-4.55%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.83%	20.90%	-6.07%

XLP vs. IAK - Expense Ratio Comparison

XLP has a 0.08% expense ratio, which is lower than IAK's 0.38% expense ratio.

Dividends

XLP vs. IAK - Dividend Comparison

XLP's dividend yield for the trailing twelve months is around 2.61%, 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%
XLP State Street Consumer Staples Select Sector SPDR ETF	2.61%	2.75%	2.77%	2.63%	2.47%	2.28%	2.50%	2.57%	3.04%	2.62%	2.53%	2.52%

Frequently Asked Questions

Can I hold both XLP and IAK in my portfolio?

XLP and IAK have a correlation of 0.39, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XLP or IAK?

IAK has higher volatility (7.15%) compared to XLP (5.43%). In terms of maximum drawdown, XLP dropped -35.90% vs IAK's -77.38%.

Which ETF is better, XLP or IAK?

On 10-year performance, IAK leads with 13.33% vs 7.18% for XLP. On fees, XLP is cheaper at 0.08% per year. On volatility, XLP has been the lower-risk option at 5.43%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XLP or IAK?

Over the 10-year period, IAK has performed better with a 13.33% return vs 7.18%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XLP or IAK?

XLP is cheaper with a 0.08% expense ratio, compared with 0.38% for IAK.

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

XLP has the higher dividend yield at 2.61%, compared with 2.41% for IAK.

What is the main difference between XLP and IAK?

XLP is categorized as Consumer Staples Equities, while IAK is Financials Equities. XLP tracks Consumer Staples 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 XLP and 0.38% for IAK.

Which has better risk-adjusted returns?

IAK currently has the higher Sharpe Ratio (1.16 vs 0.45), 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.