IAT vs. IYF: Which Ishares Financial ETF is the Better Buy?

Choosing between the iShares U.S. Regional Banks ETF (NYSEMKT:IAT) and the iShares U.S Financials ETF (NYSEMKT:IYF) comes down to a simple trade-off -- concentrated exposure to regional banking versus broad diversification across the entire financial sector. IAT foc

Choosing between the iShares U.S.

Regional Banks ETF (NYSEMKT:IAT) and the iShares U.S

Financials ETF (NYSEMKT:IYF) comes down to a simple trade-off — concentrated exposure to regional banking versus broad diversification across the entire financial sector. IAT focuses strictly on regional banking institutions, while IYF casts a wider net that includes mega-cap banks, insurers, and investment firms. Both funds are managed by iShares and have identical management fees, so the decision really hinges on how much sector-specific risk an investor is willing to take on.

Snapshot (cost & size) 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.

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