IYF vs EUFN: U.S. and European Financial Giants Face Off in this ETF Comparison
Europe's financials fund yields 4.0% but carries deeper drawdown risk, while its U.S. counterpart offers broader diversification with 142 holdings.
Overview
Comparing iShares U.S. Financials ETF (NYSEMKT:IYF) and iShares MSCI Europe Financials ETF (NASDAQ:EUFN) reveals a choice between broad domestic sector coverage and a higher-yielding, though more volatile, European basket.
Investors often turn to the financial sector for reliable dividends and cyclical growth. While both funds target financial services, the iShares financials fund focuses on the massive domestic market, whereas the iShares Europe financials fund provides targeted access to banks and insurers across developed European economies.
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.