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IAT Bets on Main Street Banking. FTXO Bets on Wall Street Giants. Which Is the Better Fit for Your Portfolio?
Key takeaways
- Regional Banks ETF (NYSEMKT:IAT) provides lower-cost exposure to regional lenders and higher dividends, while the First Trust Nasdaq Bank ETF (NASDAQ:FTXO) includes diversified money-center banking giants.
- Both exchange-traded funds target the financial sector but differ significantly in their focus.
- Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns.
The i Shares U.S. Regional Banks ETF (NYSEMKT:IAT) provides lower-cost exposure to regional lenders and higher dividends, while the First Trust Nasdaq Bank ETF (NASDAQ:FTXO) includes diversified money-center banking giants.
Both exchange-traded funds target the financial sector but differ significantly in their focus. Investors looking for pure regional bank exposure may lean toward IAT, whereas FTXO tracks a smart-beta index that includes some of the largest diversified financial institutions in the world.
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
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