Better iShares Financial Sector ETF: EUFN's Europe Focus or IAT's U.S. Regional Banks
Broader diversification and lower volatility set these two financial sector ETFs apart for investors seeking different risk and income profiles.
Overview
The iShares MSCI Europe Financials ETF (NASDAQ:EUFN) provides broad exposure to European banks and insurers with a higher yield, while the iShares U.S. Regional Banks ETF (NYSEMKT:IAT) focuses exclusively on domestic regional lenders.
While both funds are issued by iShares and focus on financials, they serve different strategic roles in a portfolio. One provides a focused play on the domestic banking sector's sensitivity to U.S. interest rates and economic health, while the other offers a diversified entry point into the massive financial institutions across the Atlantic.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Source
Originally published at www.fool.com.