IAK vs SPY

Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricIAKSPYWinner
Expense Ratio0.38%0.09%
AUM$514M$789.1B
Dividend Yield2.54%1.01%
Holdings61505
YTD Return+11.68%+13.79%
1Y Return+17.97%+23.66%
3Y Return (annualized)+19.65%+21.40%
5Y Return (annualized)+15.26%+13.37%
Volatility (annualized)20.3%15.3%
Max Drawdown-78.0%-56.5%
Fund FamilyiShares by BlackRock (US)State Street Investment Management
CategoryEquityEquity
InceptionMay 1, 2006Jan 22, 1993

IAK vs SPY Performance

iShares US Insurance ETF (IAK) is a ETF from iShares by BlackRock (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year IAK returned +17.97% while SPY returned +23.66%. Year to date, IAK is up 11.68% versus a gain of 13.79% for SPY.

Over three years, IAK compounded at +19.65% per year against +21.40% for SPY; over five years the annualized figures are +15.26% and +13.37% respectively. Across the full 20-year window we track, SPY has the edge at +8.85% annualized vs +6.02%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

IAK has been the more volatile fund, with annualized monthly volatility of 20.3% compared with 15.3% for SPY. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.

The deepest peak-to-trough decline in our data was -78.0% for IAK and -56.5% for SPY. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.

The two funds' monthly returns correlate at 0.78. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

IAK charges 0.38% per year while SPY charges 0.09%. On a $10,000 position that is $38 vs $9 annually, a gap of $29 per year that compounds over a long holding period. On income, IAK currently yields 2.54% against 1.01% for SPY.

Holdings Overlap

0.3%overlap

IAK and SPY share 4 holdings out of 504 unique holdings combined, representing a 0.3% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in IAKWeight in SPYDifference
ALL6.62%0.10%6.52%
AFL4.57%0.09%4.48%
AIG4.39%0.07%4.32%
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Frequently Asked Questions

Which is cheaper, IAK or SPY?

IAK has an expense ratio of 0.38% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $29 per year of difference.

Which performed better, IAK or SPY?

Over the past year IAK returned +17.97% vs +23.66% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (20 years), IAK annualized +6.02% vs +8.85% for SPY. Past performance does not guarantee future results.

Which is riskier, IAK or SPY?

IAK has been the more volatile fund at 20.3% annualized versus 15.3% for SPY. Worst drawdown: IAK -78.0% vs SPY -56.5%.

Should I hold both IAK and SPY?

IAK and SPY have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between IAK and SPY?

IAK and SPY share 4 common holdings with a 0.3% weight overlap. Combined, they hold 504 unique securities.

Which pays a higher dividend, IAK or SPY?

IAK yields 2.54% while SPY yields 1.01%, so IAK currently pays the higher dividend yield.

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