Invesco KBW Bank ETF Wins on Yield and 1-Year Return. Is It a Better Financials Fund Than IYF?
KBWB concentrates on 26 banking stocks with higher yield, while IYF diversifies across more than 140 financial firms with lower volatility.
Overview
The Invesco KBW Bank ETF (NASDAQ:KBWB) offers concentrated exposure to the banking industry with a higher yield, while the iShares U.S. Financials ETF (NYSEMKT:IYF) provides a more diversified financial sector portfolio with lower historical volatility.
Both funds serve as primary vehicles for financial sector exposure but differ in scope. The Invesco fund targets 26 specific banking stocks, while the iShares ETF casts a wider net across 141 holdings, including insurance and investment firms. This comparison explores which strategy better suits an investor's risk tolerance.
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.
Details
Source
Originally published at www.fool.com.