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.
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.