#3: iShares Dow Jones U.S. Financial Sector Index ETF (IYF)
IYF 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 $342M with average daily trading volume of 600K shares. As of late November 2011 the annual dividend yield was 1.75% with YTD performance of -22.00%. These three conclude those ETFs with comprehensive (catch-all) conventional indexes.
IYF Top Ten Holdings & Weightings
Data as of November, 2011
- JPMorgan Chase & Co (JPM): 6.71%
- Wells Fargo & Co (WFC): 6.39%
- Citigroup Inc (C): 4.53%
- Berkshire Hathaway Inc B (BRK.B): 3.71%
- Bank of America Corporation (BAC): 3.41%
- American Express Co (AXP): 2.67%
- U.S. Bancorp (USB): 2.42%
- Visa, Inc. (V): 2.41%
- The Goldman Sachs Group Inc (GS): 2.31%
- Simon Property Group Inc (SPG): 1.86%
#4: SPDR S&P Bank ETF (KBE)
KBE tracks the KBW Bank Index. It features a much more targeted approach to the sector toward banks obviously. It was launched in August 2005. AUM exceeds $956 million and average daily trading volume is over 6.5M shares. (Note: Since June 2011 AUM has fallen 35% and volume has increased by nearly 50% indicating both lower constituent prices but also capital flight from the sector.) The expense ratio is .35%. As of late November 2011 the annual dividend yield was 1.48.79% while YTD performance is -31.00%. There are some developing inverse and leveraged long/short issues becoming available for the sector.
KBE Top Ten Holdings & Weightings
Data as of November, 2011
- East West Bancorp Inc (EWBC): 3.01%
- Fifth Third Bancorp (FITB): 2.94%
- Citigroup Inc (C): 2.83%
- U.S. Bancorp (USB): 2.79%
- PNC Financial Services Group Inc (PNC): 2.78%
- KeyCorp (KEY): 2.77%
- Comerica Inc (CMA): 2.75%
- Northern Trust Corporation (NTRS): 2.73%
- Hudson City Bancorp, Inc. (HCBK): 2.71%
- TCF Financial Corporation (TCB): 2.71%
#5: SPDR S&P Regional Banking ETF (KRE)
KRE follows the KBW Regional Banking Index. Launched in June 2006 the index uniquely consists of an equally weighted index of regional bank issues. (Note: it is thought some of these banks are more immune to global credit risk conditions which may only be partly the case.) The expense ratio is .35%. AUM equal $491 million while average daily trading volume is a high 2.9 million shares. The high volume means more speculation within the sector given more options trading and the employment of long/short strategies. As of late November 2011the annual dividend yield was roughly 1.80% with YTD performance -18.01%.
KRE Top Ten Holdings & Weightings
Data as of November, 2011
- PrivateBancorp Inc (PVTB): 2.18%
- Umpqua Holdings Corporation (UMPQ): 2.08%
- East West Bancorp Inc (EWBC): 2.05%
- Webster Financial Corp (WBS): 2.03%
- Firstmerit Corp (FMER): 2.01%
- Fifth Third Bancorp (FITB): 1.99%
- F.N.B. Corporation (FNB): 1.98%
- Susquehanna Bancshares Inc (SUSQ): 1.96%
- Iberiabank Corp (IBKC): 1.89%
- PNC Financial Services Group Inc (PNC): 1.89%
#6: SPDR S&P Insurance ETF (KIE)
KIE tracks the KBW Insurance Index which is a float adjusted market-modified-market capitalization-weighted index. Beyond that being a mouthful, includes personal and commercial insurance, property/casualty insurance, life insurance, reinsurance, insurance brokerage and financial guarantee. The index is much more targeted away from some credit risk associated with banks and brokers but still has ill-defined exposure to it. The fund was launched in November 2005. AUM equal $114M and average daily trading volume is 360K shares. The expense ratio is .35%. As of late November 2011 the annual dividend yield was 2.14% and YTD return is -20.80%.
KIE Top Ten Holdings & Weightings
Data as of November, 2011
- The Travelers Companies, Inc. (TRV): 9.44%
- MetLife Inc (MET): 8.03%
- Chubb Corp (CB): 7.95%
- Prudential Financial Inc (PRU): 7.05%
- Aflac Inc (AFL): 6.23%
- Unum Group (UNM): 4.39%
- Ameriprise Financial Inc (AMP): 4.27%
- Principal Financial Group (PFG): 4.24%
- XL Group PLC (XL): 4.17%
- Progressive Corporation (PGR): 4.11%
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