In this article, we will take a look at the 5 best regional bank ETFs. If you want to read our discussion on the banking sector, you can check out the 10 Best Regional Bank ETFs.
5. iShares U.S. Financial Services ETF (NYSEARCA:IYG)
5-Year Price Performance: 14.3%
Total Net Assets as of September 25, 2023: $1.19 billion
Expense Ratio: 0.40%
Number of Holdings: 102
iShares U.S. Financial Services ETF (NYSEARCA:IYG) has nearly 30% exposure to the overall US banking sector and provides exposure to regional banks as well. Overall, the ETF tracks an index of US equities from the financial services sector, including investment banks, brokers, asset managers, exchanges, and insurance companies. The PNC Financial Services Group, Inc. (NYSE:PNC), a Pittsburgh, Pennsylvania-based renowned regional bank, is the 19th biggest holding of the ETF with a weight of 1.19%.
4. Invesco S&P 500 Equal Weight Financials ETF (NYSEARCA:RYF)
5-Year Price Performance: 14.7%
Total Net Assets as of September 25, 2023: $278.62 million
Expense Ratio: 0.40%
Number of Holdings: 73
Invesco S&P 500 Equal Weight Financials ETF (NYSEARCA:RYF) mimics the performance of an equal-weighted index of financial stocks in the S&P 500. The ETF, launched in November 2006, provides limited exposure to regional banks as well. Two notable regional banks included in the ETF’s portfolio are Truist Financial Corporation (NYSE:TFC) and Citizens Financial Group, Inc. (NYSE:CFG), with a weight of around 2.7%.
3. Invesco Dorsey Wright Financial Momentum ETF (NASDAQ:PFI)
5-Year Price Performance: 17.4%
Total Net Assets as of September 25, 2023: $27.62 million
Expense Ratio: 0.60%
Number of Holdings: 50
Invesco Dorsey Wright Financial Momentum ETF (NASDAQ:PFI) follows an index of US financial stocks that exhibit relative strength momentum. The ETF pays a variable quarterly dividend and presently offers a yield of 1.41%. First Citizens BancShares, Inc. (NASDAQ:FCNCA), a Raleigh, North Carolina-based regional bank, is the fourth biggest constituent of the ETF, with a 3.64% weightage.
2. Financial Select Sector SPDR Fund (NYSEARCA:XLF)
5-Year Price Performance: 18.0%
Total Net Assets as of September 25, 2023: $33.39 billion
Expense Ratio: 0.10%
Number of Holdings: 72
Financial Select Sector SPDR Fund (NYSEARCA:XLF) has the highest assets under management (AUM) amongst all the ETFs on this list. The ETF provides 23.31% exposure to the US banking industry, which is the second highest industry exposure, just behind the financial services industry, with a weight of 34.15%. Birmingham, Alabama-based Regions Financial Corporation (NYSE:RF) is a prominent constituent of the ETF. The bank operates primarily across the South, Midwest, and Texas.
1. iShares U.S. Financials ETF (NYSEARCA:IYF)
5-Year Price Performance: 21.8%
Total Net Assets as of September 25, 2023: $1.85 billion
Expense Ratio: 0.40%
Number of Holdings: 138
iShares U.S. Financials ETF (NYSEARCA:IYF) tracks an index of US equities in the financial sector, including banks, brokerages, insurers, and real estate firms. Banks have the second highest allocation in the ETF, with a weightage of 28.06%. iShares U.S. Financials ETF (NYSEARCA:IYF) pays out dividends quarterly and carries a distribution yield of 1.81%. The ETF has an average daily trading volume of 2.70 million shares and a beta of 1.08.
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