IYG - ETF AI Analysis

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iShares US Financial Services ETF (IYG)

Rating:71Outperform

Price Target:―

The iShares US Financial Services ETF (IYG) has a solid overall rating, reflecting its exposure to strong-performing financial companies. Key contributors include Visa, which benefits from robust growth and innovation in digital payments, and JPMorgan Chase, supported by strong financial performance and positive earnings sentiment. However, holdings like Citigroup and Berkshire Hathaway B slightly weigh on the rating due to financial challenges and bearish momentum. A notable risk is the ETF's concentration in the financial sector, which may expose it to sector-specific volatility.

Positive Factors

Strong Top Holdings

Several major holdings, including JPMorgan Chase and Citigroup, have delivered strong year-to-date performance, boosting the ETF's overall returns.

Focused Sector Exposure

The ETF's concentration in the financial sector allows investors to benefit from the strong performance of leading financial companies.

Reasonable Expense Ratio

The ETF charges a moderate expense ratio, making it relatively cost-effective compared to actively managed funds.

Negative Factors

Sector Over-Concentration

With nearly all assets in the financial sector, the ETF is highly exposed to risks specific to this industry.

Geographic Limitation

The ETF is almost entirely focused on U.S. companies, offering little diversification across global markets.

Recent Performance Volatility

The ETF's one-month performance has declined, indicating short-term volatility that may concern some investors.

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

AUM2.02B

RegionNorth America

Expense Ratio0.38%

Beta0.97

IssueriShares

Inception DateJun 12, 2000

Dividend Yield1.02%

Asset ClassEquity

Index TrackedDow Jones U.S. Financial Services Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume166,251

30 Day Avg. Volume82,640

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

100.10

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering101

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

IYG Summary

The iShares US Financial Services ETF (IYG) is an investment fund that focuses on the U.S. financial services sector, including banks, asset managers, and insurance companies. It tracks the Dow Jones U.S. Financial Services Index and includes well-known companies like Berkshire Hathaway and JPMorgan Chase. Investors might consider this ETF for potential growth and diversification within the financial sector, which plays a key role in the economy. However, new investors should be aware that its performance is closely tied to the health of the financial industry, which can be affected by economic cycles and interest rate changes.

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

The iShares US Financial Services ETF is heavily anchored in U.S. financial giants, with Berkshire Hathaway and JPMorgan Chase leading the charge. Berkshire’s steady performance and JPMorgan’s rising momentum have been key drivers, while Visa and Mastercard are lagging, weighed down by bearish trends and valuation concerns. The fund’s concentration in financials, particularly banks and payment processors, reflects a clear thematic focus. With Goldman Sachs and Citigroup showing robust growth, the ETF benefits from a mix of steady and rising names, though the payment sector’s struggles temper the overall outlook.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
BRK.B	Berkshire Hathaway B	13.00%	$260.70M	$1.07T	6.26%	66 Neutral
JPM	JPMorgan Chase	11.92%	$239.05M	$858.08B	23.74%	72 Outperform
V	Visa	8.00%	$160.45M	$625.00B	4.52%	70 Outperform
MA	Mastercard	6.40%	$128.37M	$485.31B	1.61%	75 Outperform
BAC	Bank of America	5.26%	$105.55M	$393.60B	17.03%	72 Outperform
WFC	Wells Fargo	4.11%	$82.38M	$282.71B	23.37%	80 Outperform
GS	Goldman Sachs Group	3.83%	$76.77M	$259.95B	49.84%	73 Outperform
MS	Morgan Stanley	3.13%	$62.72M	$281.04B	41.04%	76 Outperform
C	Citigroup	2.90%	$58.23M	$194.89B	50.94%	68 Neutral
AXP	American Express	2.85%	$57.14M	$249.56B	20.46%	80 Outperform

IYG Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

88.26

Positive

100DMA

88.16

Positive

200DMA

83.93

Positive

Market Momentum

MACD

0.57

Negative

RSI

57.21

Neutral

STOCH

75.86

Neutral

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 88.38, equal to the 50-day MA of 88.26, and equal to the 200-day MA of 83.93, indicating a bullish trend. The MACD of 0.57 indicates Negative momentum. The RSI at 57.21 is Neutral, neither overbought nor oversold. The STOCH value of 75.86 is Neutral, 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
IYG	―	―	$2.02B	0.38%	―
KBWB	―	―	$5.84B	0.35%	―
IYF	―	―	$4.05B	0.38%	―
FNCL	―	―	$2.38B	0.08%	―
FXO	―	―	$2.15B	0.62%	―
KBE	―	―	$1.37B	0.35%	―

Performance Comparison

IYG

iShares US Financial Services ETF

89.82

10.11

12.68%

KBWB

Invesco KBW Bank ETF

―

IYF

iShares U.S. Financials ETF

―

FNCL

Fidelity MSCI Financials Index ETF

―

FXO

First Trust Financials AlphaDEX Fund

―

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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