FTXO offers a 1.72% dividend yield and targeted bank exposure, while FNCL’s 0.08% expense ratio lags with broader financial sector coverage.
The First Trust Nasdaq Bank ETF (FTXO) delivers a 1.72% trailing-12-month dividend yield, outpacing the Fidelity MSCI Financials Index ETF (FNCL) at 1.56%. FTXO’s liquidity- and volatility-weighted model focuses on 49 bank stocks, while FNCL tracks 387 holdings across the financial sector with an expense ratio of 0.08%, compared to FTXO’s 0.60%.
FNCL, launched in 2013, mirrors the MSCI USA IMI Financials 25/50 Index, with top holdings including JPMorgan Chase (10.4%) and Berkshire Hathaway (7.8%). FTXO follows the Nasdaq US Smart Banks Index, selecting banks based on net income, return on assets, and momentum, with Bank of America (8.6%) as its largest position.
The 0.52 percentage-point expense gap may erode long-term returns for FNCL, despite its broader diversification. Performance and risk metrics, including beta relative to the S&P 500, further differentiate the two funds’ strategies.