European Banks or U.S. Lenders: Which Financial ETF Is the Better Buy Right Now, EUFN or KBE?
European banks have outperformed U.S. rivals by a wide margin over five years. Here is whether that advantage is worth the higher fee.
Overview
The iShares MSCI Europe Financials ETF (NASDAQ:EUFN) provides higher yields and focused European exposure, while the State Street SPDR S&P Bank ETF (NYSEMKT:KBE) offers cheaper, equal-weighted access to U.S. banks.
Choosing between these two funds involves a trade-off between geography and concentration. While both target the financial sector, one provides a doorway to developed European markets and their massive banking institutions, whereas the other offers broad, equal-weighted exposure to the U.S. banking system, including regional and commercial lenders.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). 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.