Financial Services ETFs - much diversity in industry coverage

Financial Services ETFs - much diversity in industry coverage

by Pininvest Analysis

Finance ETFs overview on pininvest.com

  • 22 constituents
  • -12.9% 1y performance
  • 45.2% volatility
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The performance of the ETFs with exposure to Financial Services and supporting activities puts the funds at the top of the Financial ETF category but their coverage of banks, consumer lending, investment management companies and fund sponsors is far from uniform

Leading by a wide margin in terms of assets under management, iShares U.S. Financial Services ETF is invested in large-cap banks and credit card institutions (55% of assets), with further diversification in mid- and small cap financials and software services. Over time, comparing the product mix of IYG with the more focused alternatives will provide valuable insights

iShares U.S. Broker-Dealers & Securities Exchanges ETF is focused on investment banking and brokerage (70% of AUM) and financial exchanges & data (27.5%) – with slightly less exposure to short term market volatility

SPDR S&P Capital Markets ETF follows a similar strategy, favoring asset management companies (40%), investment banking (38%) and financial exchanges (21%

Relatively new and with small AUM, Exchange Traded Concepts asset is uniquely focused on the ETF ‘ecosystem’ of ETF sponsors, index providers and others. The current success of the category is reflected in the outstanding combination of performance and volatility