At a glance
IAI charges 0.37% a year, below the 0.38% average of the 3 funds most like it (the 2nd cheapest of 4). It has $1.33B in assets, the 3rd largest of that group; it paid 1.19% of its price in distributions over the past 12 months, quarterly. Over the past year it returned +1.5% with distributions reinvested (S&P 500: +11.5%), the weakest of those 4 funds; over three years it returned +29.4% a year. At its worst it fell 40.4% in the 2020 crash (S&P 500: 33.7%) and 28.2% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 8 months and 20 months after the lows. Its ten largest positions make up 76.2% of the fund, out of 34 in all.
The short version
iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI) tracks the Dow Jones U.S. Select Investment Services Index. That index holds U.S. investment banks, brokers, exchanges and financial data firms. The fund is highly concentrated. As of June 30, 2026, it held 34 stocks, and Goldman Sachs and Morgan Stanley alone made up about 38% of assets. Its 0.37% expense ratio is close to the 0.38% average of similar funds.
Price history
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IAI +1.5% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| IAI official prospectus, to Dec 31, 2025 | — | +25.94% | — | +19.53% | +17.72% | — |
| S&P Total Market Index index, same period | — | +17.05% | — | +13.07% | +14.22% | — |
| IAI price data to Oct 27, 2026 | +0.3% | +1.5% | +29.4% | +11.4% | +17.5% | +7.9% |
- Over the year to Oct 27, 2026, IAI returned +1.5%, 4th of 4 among similar funds.
- Its 5-year annualized return was +11.4% and its 10-year +17.5%.
- In the 2020 COVID crash it fell 40.4% and regained its old high 8 months after the low.
- Its worst full calendar year was 2008 (-60.3%); its best was 2013 (+65.7%).
- The deepest fall in its price history was 75.5% (Jun 20, 2007 to Nov 20, 2008), recovered by Dec 7, 2016.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +0.3% | — |
| 2025 | +25.8% | +25.94% |
| 2024 | +34.4% | +34.39% |
| 2023 | +15.3% | +15.03% |
| 2022 | -10.9% | -10.72% |
| 2021 | +40.5% | +40.39% |
| 2020 | +18.6% | +18.55% |
| 2019 | +24.3% | +24.25% |
| 2018 | -9.4% | -9.30% |
| 2017 | +28.9% | +28.78% |
| 2016 | +21.3% | +21.73% |
| 2015 | -1.4% | — |
| 2014 | +11.7% | — |
| 2013 | +65.7% | — |
| 2012 | +16.4% | — |
| 2011 | -27.1% | — |
| 2010 | +4.9% | — |
| 2009 | +42.1% | — |
| 2008 | -60.3% | — |
| 2007 | -4.3% | — |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 72% over that stretch · deepest drop along the way 74.4%, back to its old high 96.2 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 40.1% over that stretch · deepest drop along the way 40.4%, back to its old high 8 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 20.8% over that stretch · deepest drop along the way 28.2%, back to its old high 20.3 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $1.6700 | |
| 2025 | $1.7100 | +14.0% |
| 2024 | $1.5000 | -23.5% |
| 2023 | $1.9600 | -4.9% |
| 2022 | $2.0600 | +42.1% |
| 2021 | $1.4500 | +17.9% |
| 2020 | $1.2300 | +18.3% |
| 2019 | $1.0400 | +16.9% |
| 2018 | $0.8900 | +3.1% |
| 2017 | $0.8630 | +17.6% |
| 2016 | $0.7340 | +35.2% |
| 2015 | $0.5430 | +12.7% |
| 2014 | $0.4820 | +10.8% |
| 2013 | $0.4350 | -38.0% |
| 2012 | $0.7020 | +167.9% |
| 2011 | $0.2620 | -44.1% |
| 2010 | $0.4690 | +193.1% |
| 2009 | $0.1600 | -64.8% |
| 2008 | $0.4540 | +29.7% |
| 2007 | $0.3500 |
What's inside
As of Jun 30, 2026, the fund held 34 securities; the ten largest made up 76.18% of assets.
| Holding | Weight | |
|---|---|---|
| THE GOLDMAN SACHS GROUP, INC. | 20.57% | |
| MORGAN STANLEY | 17.27% | |
| THE CHARLES SCHWAB CORPORATION | 8.61% | |
| ROBINHOOD MARKETS, INC. | 5.31% | |
| MOODY'S CORPORATION | 4.60% | |
| S&P GLOBAL INC. | 4.37% | |
| INTERCONTINENTAL EXCHANGE, INC. | 4.01% | |
| MSCI INC. | 3.89% | |
| CME GROUP INC. | 3.83% | |
| INTERACTIVE BROKERS GROUP, INC. | 3.70% | |
| NASDAQ, INC. | 3.36% | |
| COINBASE GLOBAL, INC. | 3.11% | |
| RAYMOND JAMES FINANCIAL, INC. | 2.52% | |
| CBOE GLOBAL MARKETS, INC. | 2.42% | |
| LPL FINANCIAL HOLDINGS INC. | 2.15% |
By country
United States 99.9%By asset type
Stocks 99.9%By sector
Sectors of the companies held, for the 83.8% of the fund in companies that have a stock page here; other holdings and cash aren't classified. Source: N-PORT holdings report as of Jun 30, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jun 30, 2026, investors withdrew a net $308.2M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +7.42%, +3.55%, -3.78%.
How it works
IAI is an index fund, which means it copies a published list of stocks instead of relying on a manager's picks. Its index is the Dow Jones U.S. Select Investment Services Index, run by S&P Dow Jones Indices. The index covers securities brokers and dealers, online brokers, and securities or commodities exchanges. It can include large, mid-size and small companies. The index provider decides which companies are in it and how much each one counts. The fund does not try to beat the index, and it does not turn defensive when markets fall.
BlackRock uses "representative sampling" to run the fund. Instead of buying every stock in the index, it may hold a sample chosen to behave like the whole index. The fund must keep at least 80% of its net assets in index stocks. It may also hold cash, money market funds and derivatives. As of June 30, 2026, cash was 0.94% of assets, and two small futures positions came to roughly 0% of assets. The fund may lend out securities worth up to one-third of its total assets. Portfolio turnover was 18%.
The fund is classified as "non-diversified," so it can put more of its money into just a few companies. As of June 30, 2026, the top 10 holdings made up 76% of assets. Goldman Sachs was 20.6%, Morgan Stanley 17.3% and Charles Schwab 8.6%.
What it really costs
- IAI charges 0.37% a year, versus an average of 0.38% for the similar funds below (2nd of 4, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $38 in the first year and $468 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| IAI | $38 | $119 | $208 | $468 |
In a retirement portfolio
IAI is a concentrated bet on Wall Street firms and exchanges, and its losses in past crises were far deeper than a broad stock fund's.
IAI could add a focused bet on trading and capital-markets activity, but it has fallen hard in past crises. In the 2008 financial crisis it lost 74.4% between October 2007 and November 2008. It took about 96 months to get back to its old high, in November 2016. Its worst calendar year was 2008, at −60.3%. In the 2020 COVID crash it fell 40.4% and recovered in about eight months. In 2022 it fell 28.2% and needed about 20 months to recover. Anyone who had to sell shares during a drop like 2008 would have locked in deep losses. Income is modest: the trailing 12-month yield was 1.19% as of October 27, 2026, paid quarterly. In the SEC's standard example, $10,000 invested costs about $38 in the first year. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want targeted exposure to Goldman Sachs, Morgan Stanley, Charles Schwab, exchanges like CME Group and Nasdaq, and data firms like S&P Global.
- People who want a small satellite position and can hold through losses like the fund's 74.4% drop in 2008.
- Cost-conscious sector investors: the 0.37% expense ratio is below IYF and IYG at 0.39% and near the 0.38% peer average.
Look elsewhere if
- Retirees who need steady income: the trailing yield was 1.19% as of October 27, 2026, paid quarterly.
- Anyone who wants broad diversification: the fund is non-diversified, and about 38% sat in two stocks as of June 30, 2026.
- Investors who may need the money within a few years: after 2008, the fund took about eight years to reach its old high again.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
Net assets from each fund's latest N-PORT or annual report where available. Returns through Oct 27, 2026.Questions investors ask
What does IAI invest in?
IAI holds U.S. investment banks, brokers, exchanges and financial data companies. It tracks the Dow Jones U.S. Select Investment Services Index. As of June 30, 2026, it held 34 stocks. The largest were Goldman Sachs (20.6%), Morgan Stanley (17.3%), Charles Schwab (8.6%), Robinhood (5.3%), Moody's (4.6%) and S&P Global (4.4%). Intercontinental Exchange, MSCI, CME Group and Interactive Brokers completed the top 10, which together made up about 76% of assets.
Is IAI a good fund for retirement?
IAI is a narrow, volatile sector fund, so it is usually a small side holding rather than a core one. It lost 74.4% during the 2008 financial crisis and took about 96 months to recover. It also fell 40.4% in the 2020 crash. Its yield was 1.19% as of October 27, 2026, which is modest. It may suit investors who want a limited bet on Wall Street firms and can hold through deep losses.
What's the difference between IAI and KCE?
Both funds focus on capital-markets companies, but their holdings overlap by only about 33%. KCE, the SPDR S&P Capital Markets ETF, costs 0.35% a year, a bit less than IAI's 0.37%. As of October 27, 2026, KCE returned 2.7% over one year versus 1.5% for IAI. Over three years, IAI was ahead, at 29.4% a year versus 26.2%. As of June 30, 2026, IAI had $1.33 billion in assets and KCE had $419 million.
Does IAI pay dividends?
Yes. IAI pays dividends every quarter. Over the 12 months to October 27, 2026, it paid $2.12 per share, a yield of 1.19%. That is a small amount of income, because the fund's holdings, such as brokers and exchanges, are mainly owned for growth. Dividends from these companies can also shrink when markets are weak, so investors who need steady income may want to compare dedicated dividend or bond funds.
How has IAI performed over the long term?
IAI has beaten the broad U.S. market over long periods, but with big swings. As of December 31, 2025, it returned 19.53% a year over five years and 17.72% over 10 years. The S&P Total Market Index returned 13.07% and 14.22% over the same periods. More recent results were weaker: as of October 27, 2026, it was up 1.5% over one year and 0.3% for the year to date.