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IYG - ETF AI Analysis
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iShares US Financial Services ETF (IYG)
Rating:72Outperform
Price Target:―
Positive Factors
Large, Established Financial Leaders
The ETF’s biggest positions are in well-known, blue-chip financial companies, which can provide stability compared with smaller, more speculative firms.
Focused Exposure to U.S. Financial Services
Almost all assets are invested in U.S. financial companies, giving investors a targeted way to benefit if the U.S. financial sector improves.
Meaningful Size of the Fund
With a sizable asset base, the ETF is large enough to offer good trading liquidity for most everyday investors.
Negative Factors
Weak Recent Performance
The fund has shown negative returns so far this year and over the past month, signaling recent weakness in its holdings.
Heavy Concentration in a Few Stocks
A small number of companies, such as Berkshire Hathaway and JPMorgan Chase, make up a large share of the portfolio, increasing the impact if any of them struggle.
High Sector and Country Concentration
Nearly all assets are in U.S. financial stocks, so the ETF could be hit hard if the U.S. financial sector faces broad challenges.
IYG vs. SPDR S&P 500 ETF (SPY)
AUM2.02B
RegionNorth America
Expense Ratio0.38%
Beta1.00
IssueriShares
Inception DateJun 12, 2000
Dividend Yield1.05%
Asset ClassEquity
Index TrackedDow Jones U.S. Financial Services Index
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume88,001
30 Day Avg. Volume121,380
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
102.08Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering99
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
IYG Summary
The iShares US Financial Services ETF (IYG) tracks the Dow Jones U.S. Financial Services Index, focusing on major U.S. financial companies. It holds well-known names like Berkshire Hathaway and JPMorgan Chase, along with credit card giants and big banks. Investors might consider IYG if they want simple, one-stop exposure to the U.S. financial sector for potential long-term growth and diversification within finance. However, this fund is heavily tied to financial stocks, so its value can rise or fall sharply with interest rates, the health of banks, and overall market conditions.
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 a pure U.S. financials play, and its story right now is a tug-of-war between card networks and big banks. Berkshire Hathaway and JPMorgan are heavyweights in the portfolio but have been losing steam this year, acting more like a brake than an engine. Visa, Mastercard, and American Express have also been lagging lately, so the payments side isn’t giving much lift either. The bright spots are Goldman Sachs and Morgan Stanley, which have been rising and helping offset weakness, but overall the fund is leaning on a relatively small group of giant financial names.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Berkshire Hathaway B | 13.43% | $272.60M | $1.08T | 4.06% | 66 Neutral | |
| JPMorgan Chase | 12.43% | $252.31M | $832.79B | 17.62% | 72 Outperform | |
| Visa | 7.96% | $161.64M | $610.49B | -7.91% | 70 Outperform | |
| Mastercard | 6.35% | $128.80M | $470.86B | -5.58% | 75 Outperform | |
| Bank of America | 5.24% | $106.31M | $384.86B | 18.41% | 72 Outperform | |
| Wells Fargo | 4.09% | $83.02M | $273.88B | 14.45% | 80 Outperform | |
| Goldman Sachs Group | 4.07% | $82.51M | $280.05B | 47.42% | 73 Outperform | |
| Morgan Stanley | 3.12% | $63.27M | $280.66B | 33.20% | 76 Outperform | |
| Citigroup | 3.05% | $61.94M | $208.04B | 45.64% | 68 Neutral | |
| American Express | 2.73% | $55.44M | $237.73B | 17.19% | 80 Outperform |
IYG Technical Analysis
Negative
―
Price Trends
91.48
Negative
89.75
Negative
87.45
Positive
Market Momentum
-0.89
Positive
42.89
Neutral
31.85
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For IYG, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 89.81, equal to the 50-day MA of 91.48, and equal to the 200-day MA of 87.45, indicating a neutral trend. The MACD of -0.89 indicates Positive momentum. The RSI at 42.89 is Neutral, neither overbought nor oversold. The STOCH value of 31.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IYG.
IYG Peer Comparison
Comparison Results
Performance Comparison
IYG
iShares US Financial Services ETF
88.49
7.42
9.15%
KBWB
Invesco KBW Bank ETF
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IYF
iShares U.S. Financials ETF
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FNCL
Fidelity MSCI Financials Index ETF
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FXO
First Trust Financials AlphaDEX Fund
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KBE
SPDR S&P Bank ETF
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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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