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IAI - ETF AI Analysis

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IAI

iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI)

Rating:73Outperform
Price Target:
IAI, the iShares U.S. Broker-Dealers & Securities Exchanges ETF, earns a solid overall rating driven by large positions in strong, well-established firms like Goldman Sachs and Morgan Stanley, which benefit from robust financial performance, positive earnings calls, and strategic focus on growth and innovation. Additional support comes from high-quality holdings such as Intercontinental Exchange, Moody’s, and Nasdaq, whose strong earnings and AI-driven initiatives bolster the fund’s outlook despite some valuation and technical risks. The main risk factor is the fund’s concentration in a single industry—U.S. broker-dealers and exchanges—meaning it is heavily exposed to the fortunes and volatility of this specific financial sector.
Positive Factors
Leading Financial Giants at the Top
Large positions in well-known firms like Goldman Sachs and Morgan Stanley, which have shown strong year-to-date performance, help support the fund’s overall results.
Focused Exposure to U.S. Financial Industry
The ETF is heavily invested in U.S. financial companies, giving investors targeted access to broker-dealers and exchanges in a single fund.
Moderate Expense Ratio for a Niche Sector ETF
The fund’s expense ratio is reasonable for a specialized financial-sector ETF, so investors are not paying unusually high ongoing fees for this focused exposure.
Negative Factors
High Concentration in a Few Stocks
A large share of the portfolio is tied up in just a handful of companies, which increases the impact if any of these names run into trouble.
Clustered in One Sector and One Country
Almost all assets are in U.S. financial stocks, so the fund could be hit hard if this industry or the U.S. market faces a downturn.
Several Key Holdings Have Been Weak Recently
Some sizable positions, including Charles Schwab, Robinhood, and others, have shown weak year-to-date performance, which has weighed on the ETF’s overall returns.

IAI vs. SPDR S&P 500 ETF (SPY)

IAI Summary

The iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI) follows the DJ US Select Investment Services index and focuses on U.S. financial companies that run stock exchanges and provide trading and brokerage services. Its holdings include well-known names like Goldman Sachs and Morgan Stanley, along with major trading platforms and market operators. Someone might invest in IAI to seek growth from the financial sector and to get a simple way to own a basket of key market players instead of picking individual stocks. A key risk is that it is heavily tied to the U.S. financial sector, so its price can rise or fall sharply with financial market conditions.
How much will it cost me?The iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI) has an expense ratio of 0.38%, which means you’ll pay $3.80 per year for every $1,000 invested. This expense ratio is slightly higher than average for ETFs because it focuses on a specific sector and is passively managed to track a niche index. It’s still relatively affordable compared to actively managed funds.
What would affect this ETF?The iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI) could benefit from increased trading activity and innovation in financial technology, as well as economic growth that drives higher demand for brokerage and securities exchange services. However, it may face challenges from rising interest rates, which can impact market liquidity, and regulatory changes targeting financial institutions or trading platforms. Its heavy reliance on U.S.-based financial companies like Goldman Sachs and Morgan Stanley makes it sensitive to domestic economic conditions.

IAI Top 10 Holdings

IAI is very much a Wall Street story, with U.S. financial heavyweights calling the shots. Goldman Sachs and Morgan Stanley are doing the heavy lifting, with rising share prices helping power the fund. On the flip side, Charles Schwab has been losing steam, acting as a brake on returns, while Coinbase’s recent weakness adds extra drag from the crypto corner. Names like MSCI and S&P Global are more steady-to-mixed, so overall the ETF is tightly tied to U.S. capital markets rather than tech or global growth themes.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Goldman Sachs Group18.76%$285.16M$273.43B71.63%
73
Outperform
Morgan Stanley15.27%$231.99M$297.41B64.19%
76
Outperform
Charles Schwab10.11%$153.67M$153.82B13.20%
74
Outperform
Robinhood4.46%$67.74M$76.27B71.57%
68
Neutral
Moody's4.32%$65.60M$79.67B4.77%
77
Outperform
S&P Global4.26%$64.71M$132.41B-8.79%
73
Outperform
MSCI4.18%$63.54M$43.15B10.48%
62
Neutral
Intercontinental Exchange4.17%$63.43M$89.75B-3.99%
80
Outperform
Coinbase Global4.14%$62.87M$52.75B-4.18%
68
Neutral
Nasdaq3.91%$59.40M$51.10B20.41%
78
Outperform

IAI Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
169.70
Positive
100DMA
175.25
Positive
200DMA
174.04
Positive
Market Momentum
MACD
2.33
Positive
RSI
56.16
Neutral
STOCH
29.25
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For IAI, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 174.77, equal to the 50-day MA of 169.70, and equal to the 200-day MA of 174.04, indicating a bullish trend. The MACD of 2.33 indicates Positive momentum. The RSI at 56.16 is Neutral, neither overbought nor oversold. The STOCH value of 29.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IAI.

IAI Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$1.48B0.38%
73
Outperform
$5.41B0.35%
74
Outperform
$3.79B0.35%
74
Outperform
$3.40B0.38%
72
Outperform
$2.20B0.08%
72
Outperform
$2.00B0.38%
72
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IAI
iShares U.S. Broker-Dealers & Securities Exchanges ETF
176.24
33.21
23.22%
KBWB
Invesco KBW Bank ETF
KRE
SPDR S&P Regional Banking ETF
IYF
iShares U.S. Financials ETF
FNCL
Fidelity MSCI Financials Index ETF
IYG
iShares US Financial Services ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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