IYF vs. FNCL: Which Financials ETF Is the Better Buy?
IYF has delivered stronger 5-year returns despite higher fees, while FNCL offers broader diversification.
Overview
The iShares U.S. Financials ETF (NYSEMKT:IYF) offers a relatively more concentrated portfolio of industry leaders and boasts higher recent returns, while the Fidelity MSCI Financials Index ETF (NYSEMKT:FNCL) provides broader sector exposure with a significantly lower expense ratio.
Both funds aim to give investors exposure to the U.S. financial sector, including banks, insurers, and asset managers. While they overlap on many of their largest positions, their underlying indexes create different levels of diversification.
Details
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-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.