iShares MSCI Europe Financials ETF delivers higher income than State Street’s U.S. bank ETF despite lower expense ratio for KBE.
The iShares MSCI Europe Financials ETF (EUFN) paid $1.65 per share in distributions over the trailing 12 months, exceeding the yield of the State Street SPDR S&P Bank ETF (KBE). EUFN targets developed European markets, holding 84 financial services firms with top positions in HSBC, Banco Santander, and Allianz.
KBE focuses on U.S. banks with an equal-weighted approach and a lower 0.35% expense ratio. EUFN’s broader exposure includes insurers and diversified financials, while KBE concentrates on domestic commercial and investment banks. Both funds launched in 2010 but serve distinct geographic mandates.
EUFN’s higher payout may attract income-focused investors despite KBE’s cost advantage.