Equity: U.S. Financials

PFI Top Performer Intra-day
Price $38.03
Today’s Change 1.28%
10:38am 06/20/2019
KBWD Bottom Performer Intra-day
Price $21.33
Today’s Change -0.23%
10:42am 06/20/2019

ETF.com Insight

With 14 ETFs and over $36.04B 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 Invesco DWA Financial Momentum ETF (PFI), with a total return of 30.21%. Meanwhile, the most popular ETF is the Financial Select Sector SPDR Fund (XLF) with $24.05BB in assets under management.

Investors should take a look at the Vanguard Financials ETF (VFH). This fund has been chosen as an Analyst Pick by FactSet, thus is the best ETF for the average investor. VFH tracks the performance of the MSCI US Investable Market Financials 25/50 Index, which includes the financial stocks of the top 98% of US market by capitalization. VFH has an expense ratio of 0.10% and tracks the MSCI US Investable Market Financials 25/50 Index.

Performance Dispersion

ETF.com Efficiency Insight

The average efficiency score in the Equity: U.S. Financials segment is 87 out of 100, with the Fidelity MSCI Financials Index ETF(FNCL) obtaining the highest rating of 100 out of 100.

Costs dominate the discussion around efficiency. ETFs in the segment have an average expense ratio of 0.53% per year, with the Fidelity MSCI Financials Index ETF (FNCL) having the lowest expense ratio, charging investors 0.08% yearly.

Investors should look for funds with tight tracking, such as the Fidelity MSCI Financials Index ETF (FNCL), with a 12-month median tracking difference of -0.07%.

Tracking Difference (12 Month)

ETF.com Tradability Insight

The average tradability score in the Equity: U.S. Financials segment is 77 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 1.20B in daily average volume. Investors should also find ample liquidity in the Vanguard Financials ETF (VFH), with $40.54M in daily dollar volume.

Use limit orders to trade funds such as the Amplify CrowdBureau Peer-to-Peer Lending & Crowdfunding ETF(LEND), due to their double-digit market spreads.

ETF.com/ Block Liquidity

IYF
5
4
3
2
1
VFH
5
4
3
2
1
XLF
5
4
3
2
1
FNCL
5
4
3
2
1
FXO
5
4
3
2
1
RYF
5
4
3
2
1
JHMF
5
4
3
2
1
RWW
5
4
3
2
1
PSCF
5
4
3
2
1
TETF
5
4
3
2
1
PFI
5
4
3
2
1
IEFN
5
4
3
2
1
KBWD
5
4
3
2
1
LEND
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 Thomson Reuters US Financials 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 IYF. 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, KBWD follows a Dividends strategy and obtains a low Fit score compared with our neutral benchmark.

Index Methodology