Deep Dive
Financials drop 2.4% after the Fed's first hike since 2023 and a Bank of America fee warning
iShares U.S. Broker-Dealers & Securities Exchanges ETF
$177.56−1.27 (−0.71%)
- 0.37%
- $1.3B
- +5.5%
- 1.19%
- 0.1M sh
- $178.54
- low $157.78high $198.09
The ETF.net IAI Grade
C
Score 48 out of 100
- 13 of 18
Score 48 of 100 falls in the C band. A is 70 or higher, B 55 to under 70, C 40 to under 55, D 25 to under 40, F under 25.
Cost
The fund’s net expense ratio, ranked against its category.C53 out of 100Rank 7 of 18Mission
Whether the fund did what it promised, tested against its stated mandate.Risk
How the fund held up when markets fell: downside volatility, drawdowns and tail loss.D25 out of 100Rank 15 of 18Tradability
How easy the fund is to trade: daily volume, and how far its price strays from net asset value.A77 out of 100Rank 3 of 18Holdings
How concentrated the fund is, and how complete and current its disclosed holdings are.F20 out of 100Rank 17 of 18Durability
Whether the fund is likely to stay open, judged by its age, its assets and its issuer’s assets.B65 out of 100Rank 6 of 18
Our read on IAI
CMost financials ETFs are mostly banks and insurers. IAI skips that and buys the toll booths: exchanges, brokerages and investment banks, about 40 names on the fee-and-commission side of Wall Street.
The fund seeks to track an index of U.S. equities in the investment services sector. It is designed to provide targeted exposure to U.S. investment banks, brokerages, and exchanges.
Why people hold it
- At 0.37%, it costs less than the typical broad financials fund (median 0.44%) and less than its own iShares broad-sector sibling IYF at 0.38%.
- Targeted by design: U.S. investment banks, brokerages and exchanges, the slice that broad sector funds bury under lenders and insurers.ishares.com
- Live since 2006, so it has traded through the financial crisis and everything since. A multi-billion-dollar iShares fund that pays quarterly.
Worth knowing
- About 40 holdings. A handful of big exchanges and brokers drive most of the ride, and concentration cuts both ways.
- Capital-markets revenue tracks trading volumes, IPOs and deal flow, and the fund sits at the more volatile end of its financials peer group.
- Whole-sector coverage is cheaper: XLF and VFH run under 0.10%. The narrow slice carries a higher fee.
IAI Holdings
- Stocks
- 39
- 85%
- OPY
Sectors
- Financials99.9%
- Technology0.1%
Geography
- United States100.00%
IAI Performance
Shows how $10,000 changes over the selected period, with cash distributions reinvested at the closing price on each ex-dividend date.
IAI$10,547
Returns run to the Oct 12, 2026 close, with cash distributions reinvested. Each period starts on the same date that many months or years earlier. Periods over one year show the average yearly return.
| Period | IAI |
|---|---|
| Year to date | +0.7% |
| 1 month | −5.9% |
| 3 months | −4.9% |
| 1 year | +5.5% |
| 3 years | +27.0% |
| 5 years | +12.3% |
| 10 years | +17.6% |
Calendar-year total return with cash distributions hypothetically reinvested at the ex-dividend date’s closing price. The current year shows year to date.
| Year | Return bar | IAI |
|---|---|---|
| 2026 YTD | +0.7% | |
| 2025 | +25.8% | |
| 2024 | +34.4% | |
| 2023 | +15.3% | |
| 2022 | −10.9% | |
| 2021 | +40.5% | |
| 2020 | +18.6% |
IAI in the news
IAI Dividends
- 1.19%
- $2.13
- $0.51 per share
- Quarterly
Distribution history
IAI Risk
- 20.4%
How it’s calculated: standard deviation
The sample standard deviation of monthly total returns, multiplied by the square root of 12.
Uses up to 36 complete months, with at least 12 required. Total returns include reinvested distributions.
- 1.03
How it’s calculated: Sharpe ratio
Subtract each month’s Treasury-bill return from the fund’s monthly total return.
Divide the average of those excess returns by their sample standard deviation, then multiply by the square root of 12.
Uses up to 36 complete months, with at least 12 required. Each month uses the Treasury yield quoted at the end of the previous month.
- −28.8%
How it’s calculated: maximum drawdown
The largest percentage decline from an earlier peak, using total returns with reinvested distributions.
Uses up to five years through the last close, with at least 12 months required.
- 1.10
How it’s calculated: beta
The beta figure is supplied by FMP. The comparison index depends on the fund’s broad asset class.
IAI Cost
0.37%
IAI0.37%
- The middle half of Financials (Broad) funds
- Median 0.37%
6 of the 18 Financials (Broad) funds charge less.
Other funds in Financials (Broad)
- CRSPFInvesco S&P 500 Equal Weight Financials ETFExpense ratio 0.40%1 year return +6.5%
- CIYGiShares U.S. Financial Services ETFExpense ratio 0.37%1 year return +8.6%
- CEUFNiShares MSCI Europe Financials ETFExpense ratio 0.49%1 year return +20.0%
- DTFNST. Rowe Price Financials ETFExpense ratio 0.44%1 year return +10.5%
- DPFIInvesco Dorsey Wright Financial Momentum ETFExpense ratio 0.78%1 year return +6.9%