IYF - ETF AI Analysis

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iShares U.S. Financials ETF (IYF)

Rating:72Outperform

Price Target:―

IYF, the iShares U.S. Financials ETF, earns a solid overall rating, largely driven by heavyweight holdings like JPMorgan Chase and Wells Fargo, which show strong financial performance, positive earnings call sentiment, and supportive technical trends that point to healthy growth potential. Other key positions such as Goldman Sachs, Morgan Stanley, BlackRock, and Progressive also add to the fund’s strength through solid profitability, strategic growth initiatives, and generally fair valuations, though some face risks like high leverage, overbought technical signals, or high valuation. The main risk factor is the ETF’s concentration in the U.S. financial sector, meaning that problems specific to banks and financial firms—such as credit costs, leverage, or sector-wide downturns—could significantly impact overall performance.

Positive Factors

Large, Established Financial Holdings

The ETF is built around major, well-known financial companies, which can provide stability and strong earnings power over time.

Recent Short-Term Performance Rebound

Despite being down so far this year, the fund has shown a recent upswing over the last three months, suggesting some recovery momentum.

Meaningful Fund Size

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

Negative Factors

Heavy Concentration in Top Holdings

A small group of big financial stocks makes up a large share of the portfolio, increasing the impact if any of them perform poorly.

Weak Year-to-Date Returns

The fund’s overall performance so far this year has been negative, with several of its largest positions showing weak results.

Narrow Sector and Geographic Focus

The ETF is almost entirely invested in U.S. financial companies, which limits diversification and makes it more sensitive to problems in that sector or country.

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

AUM4.03B

RegionNorth America

Expense Ratio0.38%

Beta0.92

IssueriShares

Inception DateMay 22, 2000

Dividend Yield1.37%

Asset ClassEquity

Index TrackedRussell 1000 Financials 40 Act 15/22.5 Daily Capped Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume441,328

30 Day Avg. Volume383,909

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

142.65

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering140

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

IYF Summary

The iShares U.S. Financials ETF (IYF) is a fund that tracks the Russell 1000 Financials Index, focusing on major U.S. financial companies. It owns a wide mix of banks, insurance firms, and other financial businesses, including well-known names like Berkshire Hathaway and JPMorgan Chase. Investors might consider IYF if they want simple, one-stop exposure to the U.S. financial sector and believe banks and other financial firms will benefit from economic growth and changing interest rates. A key risk is that it is heavily concentrated in financial stocks, so it can rise or fall sharply with the health of the financial sector.

How much will it cost me?The iShares U.S. Financials ETF (IYF) has an expense ratio of 0.38%, which means you’ll pay $3.80 per year for every $1,000 invested. This is slightly higher than average for ETFs because it focuses on a specific sector (financials) and is passively managed to track a niche index. Sector-focused funds often have higher costs due to their specialized nature.

What would affect this ETF?The iShares U.S. Financials ETF (IYF) could benefit from rising interest rates, which often increase profitability for banks and financial institutions, as well as economic growth that drives demand for financial services. However, it may face challenges from regulatory changes in the financial sector or economic slowdowns that reduce lending and investment activity. Additionally, its heavy reliance on U.S.-based financial companies means it is sensitive to domestic economic conditions and policy shifts.

IYF Top 10 Holdings

IYF is a pure U.S. financials play, and its story starts with Berkshire Hathaway and JPMorgan, which together steer a big chunk of the fund but have been losing a bit of steam lately, acting more like a brake than an engine. Traditional banking giants like Bank of America and Wells Fargo are also lagging in the near term, adding to the drag. Offsetting that, Wall Street powerhouses Goldman Sachs and Morgan Stanley have been rising, giving the ETF some welcome lift. Overall, it’s a concentrated bet on big U.S. financial institutions, not a global mix.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
BRK.B	Berkshire Hathaway B	12.16%	$490.98M	$1.08T	3.74%	66 Neutral
JPM	JPMorgan Chase	10.94%	$442.04M	$823.62B	9.38%	72 Outperform
BAC	Bank of America	4.51%	$182.11M	$379.01B	11.90%	72 Outperform
GS	Goldman Sachs Group	4.08%	$164.93M	$271.48B	37.03%	73 Outperform
WFC	Wells Fargo	3.99%	$161.29M	$268.99B	8.75%	80 Outperform
MS	Morgan Stanley	3.16%	$127.55M	$272.01B	23.17%	76 Outperform
C	Citigroup	3.15%	$127.31M	$198.36B	31.02%	68 Neutral
BLK	BlackRock	2.62%	$105.78M	$174.80B	10.02%	77 Outperform
SCHW	Charles Schwab	2.56%	$103.50M	$166.53B	16.65%	74 Outperform
SPGI	S&P Global	1.99%	$80.33M	$122.37B	-24.12%	73 Outperform

IYF Technical Analysis

Technical Analysis Sentiment

Negative

Last Price―

Price Trends

50DMA

128.53

Negative

100DMA

125.90

Negative

200DMA

122.53

Positive

Market Momentum

MACD

-0.87

Positive

RSI

37.51

Neutral

STOCH

11.01

Positive

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For IYF, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 127.37, equal to the 50-day MA of 128.53, and equal to the 200-day MA of 122.53, indicating a neutral trend. The MACD of -0.87 indicates Positive momentum. The RSI at 37.51 is Neutral, neither overbought nor oversold. The STOCH value of 11.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IYF.

IYF Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
IYF	―	―	$4.03B	0.38%	―
KBWB	―	―	$6.12B	0.35%	―
FNCL	―	―	$2.33B	0.08%	―
FXO	―	―	$2.10B	0.60%	―
IYG	―	―	$2.01B	0.38%	―
KBE	―	―	$1.55B	0.35%	―

Performance Comparison

IYF

iShares U.S. Financials ETF

123.83

6.31

5.37%

KBWB

Invesco KBW Bank ETF

―

FNCL

Fidelity MSCI Financials Index ETF

―

FXO

First Trust Financials AlphaDEX Fund

―

IYG

iShares US Financial Services ETF

―

KBE

SPDR S&P Bank 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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