XLF vs IYF: Which Financial Sector ETF Offers Better Value?
XLF's ultra-low 0.08% expense ratio cuts costs dramatically, but IYF's 141 holdings deliver broader diversification and stronger 5-year returns.
Overview
State Street Financial Select Sector SPDR ETF (NYSEMKT:XLF) and iShares U.S. Financials ETF (NYSEMKT:IYF) both provide exposure to the financial sector, but they differ significantly in cost, liquidity, and portfolio breadth.
While both funds focus on U.S. financial companies, the State Street fund targets a narrower subset of large-cap firms from the S&P 500, whereas the iShares fund offers a more expansive view of the domestic financial industry by including a wider range of market capitalizations.
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.