Fidelity's FNCL or iShares' IAT: Which Financial ETF Is the Better Long-Term Buy?
One fund spans insurance and payment processors, while the other focuses exclusively on regional lenders. Which strategy fits your portfolio?
Overview
Fidelity MSCI Financials Index ETF (NYSEMKT:FNCL) offers broad, low-cost exposure to the financial sector, whereas the iShares U.S. Regional Banks ETF (NYSEMKT:IAT) provides concentrated access specifically to U.S. regional lenders.
Investors choosing between these funds may consider the trade-off between industry specificity and broad sector diversification. While both target financial services, iShares U.S. Regional Banks ETF zeroes in on a niche segment, whereas Fidelity MSCI Financials Index ETF encompasses everything from mega-banks to insurance and payment processors.
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.