FNCL vs. KBWB: Broad Financial Exposure vs. a Concentrated Bank ETF -- Which Is the Better Buy?
Compare fees, risk profiles, and sector coverage between these two funds to see how their strategies could impact your investment approach.
FNCL vs. KBWB: Broad Financial Exposure vs. a Concentrated Bank ETF -- Which Is the Better Buy?
Overview
The Fidelity MSCI Financials Index ETF (NYSEMKT:FNCL) provides broad, low-cost exposure to the entire financial sector, while the Invesco KBW Bank ETF (NASDAQ:KBWB) offers a concentrated strategy focused strictly on the banking industry.
Both funds provide targeted exposure to the financial services sector. The Fidelity fund seeks to replicate the results of a broad financials index, casting a wide net across the industry. The Invesco fund tracks a more specialized bank index, resulting in a narrower fund that is historically more volatile.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-year 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.
