business
IYF vs. KRE: Which Financial Sector ETF Is the Better Buy?
Key takeaways
- Financials ETF (NYSEMKT:IYF) to the SPDR S&P Regional Banking ETF (NYSEMKT:KRE) highlights a classic trade-off: broad-sector stability versus highly concentrated industry volatility.
- Both funds offer exposure to financial companies, but they serve different roles in a portfolio.
- Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns.
Financials ETF (NYSEMKT:IYF) to the SPDR S&P Regional Banking ETF (NYSEMKT:KRE) highlights a classic trade-off: broad-sector stability versus highly concentrated industry volatility.
Both funds offer exposure to financial companies, but they serve different roles in a portfolio. While IYF provides a diversified look at the entire U.S. financial sector, KRE zeroes in on regional banks, making it more sensitive to specific industry shifts and interest rate environments.
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-year return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Article preview — originally published by Yahoo Finance. Full story at the source.
Read full story on Yahoo Finance →
More top stories
Aggregated and edited by the Scoop newsroom. We surface news from Yahoo Finance alongside other reporting so you can compare coverage in one place.
Editorial policy · Corrections · About Scoop