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IYG - ETF AI Analysis

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IYG

iShares US Financial Services ETF (IYG)

Rating:72Outperform
Price Target:
IYG, the iShares US Financial Services ETF, earns a solid overall rating thanks to major positions in high-quality financial leaders like JPMorgan Chase, Wells Fargo, and American Express, which show strong earnings, positive growth outlooks, and generally supportive technical trends. However, some key holdings such as Berkshire Hathaway, Visa, and Mastercard face bearish technical signals or potentially rich valuations, and the fund’s heavy concentration in U.S. financial services means its performance is closely tied to the health of the domestic financial sector.
Positive Factors
Strong Recent Performance
The ETF has shown solid gains over the past three months and year-to-date, indicating positive momentum in its financial services holdings.
Leading Financial Institutions in Top Holdings
Major positions in well-known financial companies like JPMorgan Chase, Bank of America, Goldman Sachs, and Morgan Stanley have generally delivered strong results, supporting the fund’s overall performance.
Focused Exposure to U.S. Financial Sector
The fund’s near-total focus on U.S. financial services provides targeted access to a key part of the economy for investors who want concentrated exposure to this industry.
Negative Factors
High Sector Concentration
Almost all assets are in the financial sector, so the ETF is heavily exposed to downturns or stress in financial markets.
Mixed Performance Among Top Holdings
Several large positions, including Berkshire Hathaway, Mastercard, Wells Fargo, and American Express, have recently lagged, which can drag on the fund’s returns.
Moderate Expense Ratio
The fund’s fee is not extremely high but is also not among the lowest, meaning costs will slightly reduce investors’ net returns over time.

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

IYG Summary

IYG is the iShares US Financial Services ETF, which follows the Dow Jones U.S. Financial Services Index. It invests in major American financial companies such as JPMorgan Chase and Berkshire Hathaway, along with credit card giants like Visa and Mastercard. This ETF focuses on banks, insurance firms, and other financial businesses, giving investors an easy way to spread their money across many leading players in the U.S. financial sector. Someone might invest in IYG for diversification and potential long-term growth tied to the health of the financial industry. A key risk is that it can rise or fall sharply with changes in the financial sector and overall market.
How much will it cost me?The iShares US Financial Services ETF (Ticker: IYG) 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 average because it is a sector-focused ETF, which often requires more active management compared to broad-market index funds. It’s important to consider this cost when evaluating your investment options.
What would affect this ETF?The iShares US Financial Services ETF (IYG) could benefit from economic growth and increased consumer spending, which often drive higher profits for banks, payment processors, and asset managers like JPMorgan Chase, Visa, and Mastercard. However, rising interest rates or stricter financial regulations could negatively impact lending and profitability for top holdings such as Bank of America and Wells Fargo. Additionally, any downturn in the U.S. economy could pose risks due to the ETF's concentrated exposure to the financial sector.

IYG Top 10 Holdings

IYG is essentially a bet on U.S. financial heavyweights, with JPMorgan and Bank of America doing much of the lifting as their shares have been steadily rising on solid earnings and improving sentiment. Goldman Sachs and Morgan Stanley add more fuel, benefiting from upbeat markets and deal activity. On the payments side, Visa is quietly supportive, while Mastercard’s mixed performance and American Express losing steam have been mild drags. With all holdings rooted in U.S. financial services, the fund is tightly focused on Wall Street’s fortunes.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
JPMorgan Chase13.01%$282.32M$940.11B21.57%
72
Outperform
Berkshire Hathaway B12.93%$280.61M$989.59B8.18%
66
Neutral
Visa8.41%$182.55M$651.67B7.89%
70
Outperform
Mastercard6.44%$139.90M$510.40B2.36%
75
Outperform
Bank of America5.58%$121.03M$438.07B35.68%
72
Outperform
Goldman Sachs Group4.18%$90.80M$302.34B43.52%
73
Outperform
Wells Fargo3.62%$78.51M$258.34B11.15%
80
Outperform
Morgan Stanley3.48%$75.62M$331.32B51.28%
76
Outperform
Citigroup3.12%$67.77M$226.92B44.23%
68
Neutral
American Express2.49%$53.94M$227.93B14.26%
80
Outperform

IYG Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
91.24
Positive
100DMA
88.12
Positive
200DMA
88.53
Positive
Market Momentum
MACD
RSI
STOCH
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For IYG, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 94.51, equal to the 50-day MA of 91.24, and equal to the 200-day MA of 88.53, indicating a bullish trend. The MACD of ― indicates undefined momentum. The RSI at ― is undefined, neither overbought nor oversold. The STOCH value of ― is undefined, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IYG.

IYG Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$2.17B0.38%
72
Outperform
$6.69B0.35%
74
Outperform
$4.43B0.38%
72
Outperform
$2.37B0.08%
72
Outperform
$1.65B0.35%
73
Outperform
$1.14B0.60%
72
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IYG
iShares US Financial Services ETF
95.52
10.35
12.15%
KBWB
Invesco KBW Bank ETF
IYF
iShares U.S. Financials ETF
FNCL
Fidelity MSCI Financials Index ETF
KBE
SPDR S&P Bank 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.
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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