Which Banking ETF Is Better, Fidelity's Broader FNCL or iShares IAT's Regional Bank Focus?
Compare diversification, cost, and risk profiles as two financial sector ETFs take different approaches to portfolio construction.
Which Banking ETF Is Better, Fidelity's Broader FNCL or iShares IAT's Regional Bank Focus?
Overview
Investors choosing between the iShares U.S. Regional Banks ETF (NYSEMKT:IAT) and Fidelity MSCI Financials Index ETF (NYSEMKT:FNCL) may weigh IAT's narrow industry concentration and higher yield against FNCL's broad sector exposure and lower cost.
Both funds provide exposure to the financial sector, but their scopes differ significantly. One targets a specific niche within the banking industry, while the other serves as a broad-market representative for the entire financial industry. This comparison examines how these distinct strategies impact performance, risk, and costs.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr 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.
