IAT vs. IYF: Which iShares Financial ETF Is the Better Buy?
One fund offers a higher dividend yield, while the other provides broader diversification with lower volatility.
Overview
Choosing between the iShares U.S. Regional Banks ETF (NYSEMKT:IAT) and the iShares U.S. Financials ETF (NYSEMKT:IYF) comes down to a simple trade-off -- concentrated exposure to regional banking versus broad diversification across the entire financial sector.
IAT focuses strictly on regional banking institutions, while IYF casts a wider net that includes mega-cap banks, insurers, and investment firms. Both funds are managed by iShares and have identical management fees, so the decision really hinges on how much sector-specific risk an investor is willing to take on.
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.