Equity: U.S. Financials

XLF Top Performer Intra-day
Price $31.73
Today’s Change -0.56%
4:00pm 06/29/2022
GABF Bottom Performer Intra-day
Price $23.94
Today’s Change -1.30%
4:00pm 06/29/2022

ETF.com Insight

With 14 ETFs and over $48.02B in combined AUM, the Equity: U.S. Financials segment provides exposure to the U.S. space with a focus on Financials securities.

Year-to-date, the best-performing ETF in the segment is the First Trust Financials AlphaDEX Fund (FXO), with a total return of -13.88%. Meanwhile, the most popular ETF is the Financial Select Sector SPDR Fund (XLF) with $30.17BB in assets under management.

Investors should take a look at the iShares U.S. Financial Services ETF (IYG). This fund has been chosen as an Analyst Pick by FactSet, thus is the best ETF for the average investor. IYG invests in a market-cap-weighted subset of US stocks consisting exclusively of financial service firms. IYG has an expense ratio of 0.42% and tracks the Dow Jones U.S. Financial Services Index.

Performance Dispersion

ETF.com Efficiency Insight

The average efficiency score in the Equity: U.S. Financials segment is 86 out of 100, with the Financial Select Sector SPDR Fund(XLF) obtaining the highest rating of 98 out of 100.

Costs dominate the discussion around efficiency. ETFs in the segment have an average expense ratio of 0.47% per year, with the Gabelli Financial Services Opportunities ETF (GABF) having the lowest expense ratio, charging investors 0% yearly.

Investors should look for funds with tight tracking, such as the Vanguard Financials ETF (VFH), with a 12-month median tracking difference of -0.15%.

Tracking Difference (12 Month)

ETF.com Tradability Insight

The average tradability score in the Equity: U.S. Financials segment is 85 out of 100, with the iShares U.S. Financials ETF(IYF) obtaining the highest rating of 99 out of 100.

The Financial Select Sector SPDR Fund (XLF) is the undisputed segment leader when it comes to liquidity. The fund trades 2.35B in daily average volume. Investors should also find ample liquidity in the SPDR S&P Bank ETF (KBE), with $142.68M in daily dollar volume.

Use limit orders to trade funds such as the Invesco DWA Financial Momentum ETF(PFI), due to their double-digit market spreads.

ETF.com/ Block Liquidity

XLF
5
4
3
2
1
KBE
5
4
3
2
1
IYG
5
4
3
2
1
IYF
5
4
3
2
1
VFH
5
4
3
2
1
RYF
5
4
3
2
1
FXO
5
4
3
2
1
FNCL
5
4
3
2
1
PFI
5
4
3
2
1
IEFN
5
4
3
2
1
JHMF
5
4
3
2
1
KBWD
5
4
3
2
1
PSCF
5
4
3
2
1
GABF
5
4
3
2
1
This measurement shows how easy it is to trade 25,000 shares of each ETF.

ETF.com Fit Insight

The MSCI USA IMI Financials Index has been selected as the index that most accurately represents the market in question. The benchmark has been selected by the ETF Analytics team at FactSet, according to a series of guidelines to ensure this index accurately captures its market.

Investors trying to match a broad market exposure should pay attention to . This fund obtains a high Fit score and investors should capture market-like returns.

Other funds diverge from the market, by nature of their investment mandates; for example, follows a strategy and obtains a low Fit score compared with our neutral benchmark.

Index Methodology