Which Banking ETF Is the Better Buy: iShares' European EUFN or Invesco's U.S.-Focused KBWB?
EUFN provides broader geographic diversification across developed Europe with lower volatility, while KBWB concentrates on U.S. banks for more concentrated exposure.
Overview
iShares MSCI Europe Financials ETF (NASDAQ:EUFN) provides exposure to European financial institutions with a higher yield, while Invesco KBW Bank ETF (NASDAQ:KBWB) focuses on a concentrated portfolio of U.S.-based banks.
Investors evaluating financial sector ETFs may look to the domestic stability of U.S. institutions or the international diversification provided by European markets. This analysis compares how the Invesco fund focuses on a concentrated basket of U.S. banks, while the iShares fund offers exposure to a wider array of developed European financial firms.
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-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.