IAT - ETF AI Analysis

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iShares U.S. Regional Banks ETF (IAT)

Rating:74Outperform

Price Target:―

IAT, the iShares U.S. Regional Banks ETF, earns a solid overall rating driven by large positions in well-established regional banks like PNC Financial and U.S. Bancorp, which benefit from strong financial performance, fair to attractive valuations, and generally positive earnings outlooks. Additional support comes from holdings such as Huntington Bancshares and Regions Financial, where robust earnings, strategic growth initiatives, and solid dividends strengthen the fund’s profile. The main risk factor is the ETF’s concentration in regional banks, where several holdings show overbought technical signals and face challenges in revenue growth, leverage, or expense management, which can increase volatility if conditions in the banking sector weaken.

Positive Factors

Improving Recent Performance

The ETF has shown solid gains over the last few months, indicating improving sentiment toward regional bank stocks.

Strong Contribution from Key Holdings

Several of the largest positions, such as PNC Financial, M&T Bank, and Fifth Third Bancorp, have delivered strong year-to-date results that support the fund’s overall performance.

Meaningful Fund Size

With several hundred million dollars in assets, the ETF is large enough to offer reasonable trading liquidity for most everyday investors.

Negative Factors

High Concentration in Top Stocks

A small number of holdings, including PNC Financial, US Bancorp, and Truist Financial, make up a large share of the portfolio, increasing the impact of any weakness in these names.

Single-Sector Exposure

Almost all of the fund is invested in financial companies, so it is heavily exposed to risks specific to the banking sector.

Limited Geographic Diversification

The ETF invests almost entirely in U.S. companies, offering little protection if the U.S. financial market faces stress.

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

AUM635.23M

RegionNorth America

Expense Ratio0.38%

Beta1.04

IssueriShares

Inception DateMay 01, 2006

Dividend Yield2.72%

Asset ClassEquity

Index TrackedDJ US Select / Regional Banks

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume232,059

30 Day Avg. Volume224,024

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

64.77

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering31

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

IAT Summary

The iShares U.S. Regional Banks ETF (IAT) tracks the DJ US Select Regional Banks index, focusing on medium-sized banks that operate across different regions of the United States. It holds a basket of financial companies such as PNC Financial and US Bancorp, giving investors a simple way to spread their money across many regional banks instead of picking individual stocks. Someone might invest in IAT to benefit from potential growth in the U.S. economy and rising interest rates, which can help banks’ profits. A key risk is that it is heavily tied to the banking sector, so it can rise or fall sharply with financial industry conditions.

How much will it cost me?The iShares U.S. Regional Banks ETF (IAT) has an expense ratio of 0.38%, meaning you’ll pay $3.80 per year for every $1,000 invested. This is slightly higher than the average for passively managed ETFs because it focuses on a specific niche—regional banks—which requires more targeted management.

What would affect this ETF?The iShares U.S. Regional Banks ETF (IAT) could benefit from rising interest rates, which often improve bank profitability by increasing the margin between lending and borrowing rates. Additionally, localized economic growth in the U.S. may positively impact regional banks due to their strong community ties. However, challenges such as stricter banking regulations or economic slowdowns in specific regions could negatively affect the ETF's performance, as regional banks are more sensitive to localized economic and regulatory pressures.

IAT Top 10 Holdings

IAT is essentially a pure play on U.S. regional banks, with performance heavily steered by a few big names. PNC Financial is one of the main engines, rising steadily on solid earnings and a constructive outlook. M&T Bank and Fifth Third are also helping to pull the fund forward with firm, recently upbeat trends. On the other hand, Truist and First Citizens feel more like dead weight lately, with softer near-term moves despite decent fundamentals. With all holdings U.S.-based financials, this ETF is highly concentrated in one sector and geography.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
PNC	PNC Financial	14.15%	$89.76M	$89.43B	17.67%	71 Outperform
USB	US Bancorp	14.11%	$89.50M	$89.68B	20.34%	76 Outperform
TFC	Truist Financial	10.45%	$66.27M	$66.39B	9.64%	70 Outperform
FITB	Fifth Third Bancorp	6.29%	$39.86M	$34.94B	19.34%	71 Outperform
MTB	M&T Bank	5.53%	$35.08M	$35.15B	14.01%	76 Outperform
HBAN	Huntington Bancshares	5.28%	$33.47M	$35.16B	2.19%	80 Outperform
CFG	Citizens Financial	4.50%	$28.55M	$27.67B	39.10%	75 Outperform
RF	Regions Financial	4.20%	$26.63M	$26.08B	20.60%	79 Outperform
FCNCA	First Citizens BancShares	3.25%	$20.60M	$24.01B	-7.37%	73 Outperform
KEY	KeyCorp	3.25%	$20.59M	$23.56B	20.77%	69 Neutral

IAT Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

57.35

Positive

100DMA

53.74

Positive

200DMA

51.40

Positive

Market Momentum

MACD

1.11

Positive

RSI

55.15

Neutral

STOCH

27.88

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For IAT, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 59.49, equal to the 50-day MA of 57.35, and equal to the 200-day MA of 51.40, indicating a bullish trend. The MACD of 1.11 indicates Positive momentum. The RSI at 55.15 is Neutral, neither overbought nor oversold. The STOCH value of 27.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IAT.

IAT Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
IAT	―	―	$635.23M	0.38%	―
REM	―	―	$629.54M	0.48%	―
KCE	―	―	$484.83M	0.35%	―
KIE	―	―	$445.77M	0.35%	―
KBWD	―	―	$443.47M	5.39%	―
IAK	―	―	$420.43M	0.38%	―

Performance Comparison

IAT

iShares U.S. Regional Banks ETF

59.90

9.73

19.39%

REM

iShares Mortgage Real Estate ETF

―

KCE

SPDR S&P Capital Markets ETF

―

KIE

SPDR S&P Insurance ETF

―

KBWD

Invesco KBW High Dividend Yield Financial ETF

―

IAK

iShares U.S. Insurance 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.

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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