Which Financial ETF is the Better Fit? Invesco KBW Bank ETF (KBWB) or iShares Regional Banks ETF (IAT)
KBWB delivered stronger 5-year returns and lower volatility, while IAT offers higher dividend income for yield-focused investors.
Overview
Invesco KBW Bank ETF (NASDAQ:KBWB) provides diversified exposure across national and regional banks, whereas iShares U.S. Regional Banks ETF (NYSEMKT:IAT) focuses exclusively on the regional banking sector.
Investors seeking exposure to the financial sector often choose between broad-based banking funds and those targeting specific niches. This comparison examines two popular options that differ in concentration and in the specific types of banking institutions included in their respective portfolios.
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.