iShares U.S. Financials ETF vs State Street SPDR Bank ETF: Which Is the Better Buy?
Comparing the iShares U.S. Financials ETF (NYSEMKT:IYF) to the State Street SPDR S&P Bank ETF (NYSEMKT:KBE) highlights the trade-off between broad financial services exposure and a concentrated, equal-weighted play on the banking sub-sector.
Investors seeking financial sector exposure often choose between broad market funds and niche sub-industry trackers. While both ETFs focus on the American financial landscape, their construction methods lead to different risk profiles and return drivers, particularly during periods of interest rate volatility or banking stress.
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.
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