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Top 10 U.S. Financial Sector ETFs

VFH (Vanguard Financials ETF) tracks the MSCI US Investable Market Financials 25/50 Index. The fund was launched in January 2004. The expense ratio is .25%. AUM equal $600M with average daily trading volume of less than 130K shares. The annual dividend is $.13 making the current yield as of June 2011 .42% with YTD performance -5.00%.

Data as of June 2011

VFH Top Ten Holdings & Weightings

  1. JP Morgan Chase & Co (JPM):                                     7.56%
  2. Wells Fargo Company (WFC):                                     6.63%
  3. Bank of America Corp (BAC):                                      5.64%
  4. Citigroup, Inc. (C):                                                       5.38%
  5. Goldman Sachs Group, Inc. (GS):                               3.22%
  6. Berkshire Hathaway Inc B (BRK.B):                             3.09%
  7. U.S. Bancorp (USB):                                                    2.13%
  8. American Express Company (AXP):                             2.05%
  9. MetLife Inc. (MET):                                                       1.98%
  10. Morgan Stanley (MS):                                                  1.56%

 

KRE (SPDR KBW Regional Banking ETF) follows the KBW Regional Banking Index. Launched in June 2006 the index uniquely consists of an equally weighted index of regional bank issues. The expense ratio is .35%. AUM equal $560 million while average daily trading volume is a high 2.3 million shares. The high volume means more speculation within the sector given more options trading and the employment of long/short strategies. The annual dividend is currently $.31 making the current yield as of June 2011 roughly 1.25% with total YTD performance -7.7%.

Data as of June 2011

KRE Top Ten Holdings & Weightings

  1. SVB Financial Group (SIVB):                                       2.89%
  2. Whitney Holding Corporation (WTNY):                        2.73%
  3. Associated Banc-Corp (ASBC):                                   2.64%
  4. Community Bank System (CBU):                                  2.59%
  5. First Midwest Bancorp (FMBI):                                       2.48%
  6. CVB Financial Corporation (CVBF):                             2.45%
  7. Wintrust Financial Corp (WTFC):                                 2.45%
  8. Webster Financial Corp (WBS):                                   2.41%
  9. Boston Private Financial Holdings Inc (BPFH):            2.40%
  10. Sterling Bancshares, Inc. (SBIB):                                 2.40%

IYF (iShares Dow Jones U.S. Financial Sector ETF) tracks the index of the same name but is broader than just the banking sector. It was launched in May 2000. The expense ratio is higher than most at .48%. AUM exceeds $460M with average daily trading volume of 540K shares.

As with other sectors, remember ETF sponsors must issue and their interests arenâ¿¿t aligned with yours. They have a business interest and wish to have a competitive presence in any popular sector. The dividend is $.58 making the current yield as of June 2011 near 1% with YTD performance of -5.83%.

Data as of June 2011

IYF Top Ten Holdings & Weightings

  1. JPMorgan Chase & Co (JPM):                         7.34%
  2. Wells Fargo Company (WFC):                         6.14%
  3. Citigroup Inc (C):                                             5.18%
  4. Bank of America Corp DE (BAC):                     5.15%
  5. Berkshire Hathaway Inc B (BRK.B):                 3.31%
  6. Goldman Sachs Group, Inc. (GS):                   2.63%
  7. American Express Company (AXP):                 2.39%
  8. U.S. Bancorp (USB):                                        2.13%
  9. Visa, Inc. (V)                                                    1.74%
  10. MetLife Inc. (MET):                                         1.58%

 

PSP (PowerShares Listed Private Equity ETF) tracks the Global Listed Private Equity Index. This is a much more unique or niche area of the financial sector including global private banks, investment companies, venture capitalists, brokers and others. These consist of between 40-60 publicly listed companies whose principal business is to invest in and lend capital to privately held companies or what some would term ⿿merchant banking⿝. The expense ratio is .60% which is higher than the group but is a more specialized ETF. AUM exceeds $425M and averaged daily trading volume is roughly 265K shares. The dividend is currently $1.52 (which may include onetime factors) making the current yield nearly 15% as of June 2011. The YTD return as of June 2011 is -5.30%.

Data as of June 2011

PSP Top Ten Holdings & Weightings

  1. Leucadia National Corporation (LUK):                          5.05%
  2. Ratos AB (RATO B):                                                    5.03%
  3. SPDR S&P 500 (SPY):                                                 4.94%
  4. Financial Select Sector SPDR (XLF):                           4.94%
  5. Hal Trust (HAL):                                                           4.61%
  6. Wendel Investissement (MF.PA):                                4.19%
  7. 3i Group (III):                                                               4.15%
  8. Ares Capital Corporation BDC (ARCC):                       3.87%
  9. Partners Group Holding (PGHN):                                3.68%
  10. Onex Corp Subordinate Voting Share (OCX):              3.57%

 

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VFH $49.45 0.00%

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