Fidelity's FNCL or State Street's KBE: Which Financial ETF Is the Better Long-Term Buy?
Fidelity's broader portfolio delivered stronger five-year returns with half the expense ratio, while State Street's banking focus offers higher dividend income.
Overview
Fidelity MSCI Financials Index ETF (NYSEMKT:FNCL) provides broad financial sector exposure and a lower cost, while State Street SPDR S&P Bank ETF (NYSEMKT:KBE) offers concentrated banking access with a higher yield.
Investors looking for financial sector exposure may choose between broad-market coverage and a niche banking focus. While both funds hold major financial institutions, their index strategies differ in diversification, cost, and historical volatility profiles, impacting how they may fit into a long-term portfolio.
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.