IYF vs. KRE: Which Financial Sector ETF Is the Better Buy?
Portfolio concentration, risk profiles, and income potential set these two financial sector ETFs apart.
IYF vs. KRE: Which Financial Sector ETF Is the Better Buy?
Overview
Comparing the iShares U.S. Financials ETF (NYSEMKT:IYF) to the SPDR S&P Regional Banking ETF (NYSEMKT:KRE) highlights a classic trade-off: broad-sector stability versus highly concentrated industry volatility.
Both funds offer exposure to financial companies, but they serve different roles in a portfolio. While IYF provides a diversified look at the entire U.S. financial sector, KRE zeroes in on regional banks, making it more sensitive to specific industry shifts and interest rate environments.
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.
