Which Financial ETF Is the Better Buy: iShares' European EUFN or ProShares' Leveraged UYG?
ProShares' 2x leverage delivered a steeper drawdown and lower returns, while iShares posted a 31% one-year gain with half the expense ratio.
Overview
iShares MSCI Europe Financials ETF (NASDAQ:EUFN) provides broad exposure to European banks and insurers, while ProShares - Ultra Financials (NYSEMKT:UYG) uses leverage to seek double the daily returns of U.S. financial stocks.
Investors looking for exposure to the financial sector may find these two funds provide drastically different experiences. While both track banking and insurance institutions, their geographic targets and mechanical structures create distinct risk-reward profiles that suit very different investment strategies or time horizons.
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.
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