iShares U.S. Financial Services ETF (IYG)

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Should You Invest in the iShares U.S. Financial Services ETF (IYG)?
ZACKSยท 2025-08-19 11:21
Core Insights - The iShares U.S. Financial Services ETF (IYG) offers broad exposure to the Financials sector, appealing to both institutional and retail investors due to its low cost and transparency [1][2] - The ETF is sponsored by Blackrock and has assets exceeding $1.87 billion, aiming to match the performance of the Dow Jones U.S. Financial Services Index [3] - The ETF has an annual operating expense ratio of 0.39% and a 12-month trailing dividend yield of 1.06% [4] Sector Exposure and Holdings - IYG provides nearly 100% allocation in the Financials sector, ensuring diversified exposure [5] - The top holdings include Berkshire Hathaway Inc Class B (13.21%), Jpmorgan Chase & Co, and Visa Inc Class A, with the top 10 holdings comprising approximately 60.74% of total assets [6] Performance Metrics - Year-to-date return for IYG is approximately 12.55%, with a 12-month return of about 28.02% as of August 19, 2025 [7] - The ETF has a beta of 1.11 and a standard deviation of 19.77% over the trailing three-year period, indicating a higher risk profile [7] Alternatives - IYG holds a Zacks ETF Rank of 2 (Buy), suggesting it is a strong option for investors seeking Financials exposure [8] - Other ETFs in the sector include Vanguard Financials ETF (VFH) with $12.64 billion in assets and Financial Select Sector SPDR ETF (XLF) with $52.46 billion, both having lower expense ratios of 0.09% and 0.08% respectively [9]