IAI - ETF AI Analysis

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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 mainly by large positions in strong, well-run firms like Goldman Sachs, Morgan Stanley, and Intercontinental Exchange, all showing robust financial performance, positive earnings commentary, and strategic growth initiatives (including AI and digital innovation). Additional support comes from holdings such as Nasdaq and Moody’s, which benefit from strong earnings and growth plans but face some pressure from high valuations, leverage, and occasional bearish technical signals. The main risk factor is the fund’s concentration in U.S. broker-dealers and exchanges, where several holdings share similar vulnerabilities such as high valuation levels, leverage, and periods of negative or overbought technical trends.

Positive Factors

Strong Large Financial Holdings

Several of the biggest positions, including major banks and exchanges, have shown generally positive performance this year, helping support the ETF’s returns.

Focused Industry Exposure

The fund is heavily focused on U.S. broker-dealers and exchanges, giving investors targeted exposure to a key part of the financial system.

Solid Asset Base

With a sizable level of assets under management, the ETF appears established and likely benefits from good trading liquidity for investors.

Negative Factors

High Concentration in Top Holdings

A large share of the fund is invested in just a few companies, which increases the impact that any one stock’s weakness can have on overall performance.

Sector Concentration Risk

Almost all of the ETF is invested in the financial sector, so it may be hit hard if financial stocks face a downturn.

Limited Geographic Diversification

The ETF is almost entirely invested in U.S. companies, offering little protection if the U.S. market or economy struggles.

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

AUM1.73B

RegionNorth America

Expense Ratio0.38%

Beta1.15

IssueriShares

Inception DateMay 01, 2006

Dividend Yield1%

Asset ClassEquity

Index TrackedDJ US Select / Investment Services

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume261,616

30 Day Avg. Volume153,985

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

204.34

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering33

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

IAI Summary

IAI is an ETF that follows the DJ US Select / Investment Services index, focusing on U.S. financial companies that run stock exchanges and provide brokerage and trading services. Its holdings include well-known names like Goldman Sachs and Morgan Stanley, along with major exchange operators such as Nasdaq and CME Group. Someone might invest in IAI to bet on the growth of the U.S. financial markets and to get targeted exposure to key players in capital markets. A key risk is that it is heavily concentrated in financial stocks, so it can rise or fall sharply with that sector.

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 essentially a bet on Wall Street’s dealmakers and market plumbers, with Goldman Sachs and Morgan Stanley setting the tone. Both have had a mixed run lately, giving the fund a bit of a push-and-pull feel. Charles Schwab has been lagging, acting like a small anchor on performance, while CME Group and Interactive Brokers are two of the brighter spots, quietly rising on solid trading activity. With all major holdings rooted in U.S. capital markets, this ETF is highly concentrated in financials and firmly tied to the health of American markets.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
GS	Goldman Sachs Group	18.86%	$327.69M	$280.05B	47.42%	73 Outperform
MS	Morgan Stanley	14.45%	$251.01M	$280.66B	33.20%	76 Outperform
SCHW	Charles Schwab	10.71%	$186.06M	$169.48B	16.89%	74 Outperform
CME	CME Group	5.48%	$95.21M	$109.10B	23.80%	74 Outperform
ICE	Intercontinental Exchange	4.55%	$79.03M	$88.13B	-8.26%	80 Outperform
MCO	Moody's	4.42%	$76.78M	$80.42B	-10.49%	77 Outperform
MSCI	MSCI	4.27%	$74.25M	$40.06B	-5.92%	62 Neutral
SPGI	S&P Global	4.03%	$69.93M	$125.31B	-21.73%	73 Outperform
NDAQ	Nasdaq	3.86%	$67.07M	$46.69B	0.99%	78 Outperform
IBKR	Interactive Brokers	3.46%	$60.07M	$33.36B	36.05%	75 Outperform

IAI Technical Analysis

Technical Analysis Sentiment

Negative

Last Price―

Price Trends

50DMA

181.29

Negative

100DMA

177.42

Negative

200DMA

171.80

Positive

Market Momentum

MACD

-3.48

Positive

RSI

41.02

Neutral

STOCH

40.92

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For IAI, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 177.74, equal to the 50-day MA of 181.29, and equal to the 200-day MA of 171.80, indicating a neutral trend. The MACD of -3.48 indicates Positive momentum. The RSI at 41.02 is Neutral, neither overbought nor oversold. The STOCH value of 40.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IAI.

IAI Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
IAI	―	―	$1.73B	0.38%	73 Outperform
KBWB	―	―	$6.10B	0.35%	74 Outperform
KRE	―	―	$4.89B	0.35%	74 Outperform
IYF	―	―	$3.99B	0.38%	72 Outperform
FNCL	―	―	$2.35B	0.08%	72 Outperform
FXO	―	―	$2.12B	0.61%	73 Outperform

Performance Comparison

IAI

iShares U.S. Broker-Dealers & Securities Exchanges ETF

172.04

21.98

14.65%

KBWB

Invesco KBW Bank ETF

―

KRE

SPDR S&P Regional Banking ETF

―

IYF

iShares U.S. Financials ETF

―

FNCL

Fidelity MSCI Financials Index ETF

―

FXO

First Trust Financials AlphaDEX Fund

―

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.

Disclaimer

This 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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