5 Best Financial and Fintech ETFs To Buy

2. iShares U.S. Broker-Dealers & Securities Exchanges ETF (NYSE:IAI)

5-Year Share Price Performance as of March 22: 93.50%

iShares U.S. Broker-Dealers & Securities Exchanges ETF (NYSE:IAI) aims to replicate the performance of the Dow Jones U.S. Select Investment Services Index, comprising US equities within the investment services sector. This ETF provides exposure to American investment banks, discount brokerages, and stock exchanges. As of March 22, 2024, the fund owns net assets worth $472.5 million, featuring an expense ratio of 0.40% and a portfolio of 33 stocks. iShares U.S. Broker-Dealers & Securities Exchanges ETF (NYSE:IAI) ranks 2nd on our list of the best financial ETFs. 

S&P Global Inc. (NYSE:SPGI) is the largest holding of the iShares U.S. Broker-Dealers & Securities Exchanges ETF (NYSE:IAI). On February 20, S&P Global Inc. (NYSE:SPGI) announced that it is acquiring Visible Alpha, a provider of consensus data and analytics, to enhance its S&P Capital IQ platform. The Visible Alpha transaction is expected to finalize in 2024. 

According to Insider Monkey’s fourth quarter database, 82 hedge funds were bullish on S&P Global Inc. (NYSE:SPGI), up from 78 funds in the prior quarter. 

Baron FinTech Fund stated the following regarding S&P Global Inc. (NYSE:SPGI) in its fourth quarter 2023 investor letter:

“Shares of rating agency and data provider S&P Global Inc. (NYSE:SPGI) increased due to higher debt issuance amid more favorable market conditions. Billed issuance rose 47% in October and 26% in November against subdued levels last year, with issuance boosted by declining interest rates and tighter bond spreads. Positive equity market performance in the fourth quarter benefited asset-based fees. In addition, the company reported strong quarterly financial results with double-digit growth in revenue and earnings and raised full-year earnings guidance. We continue to own the stock due to the company’s long runway for growth and significant competitive advantages.”