IYG - ETF AI Analysis

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iShares US Financial Services ETF (IYG)

Rating:72Outperform

Price Target:―

IYG, the iShares US Financial Services ETF, has a solid overall rating driven mainly by large, well-established leaders like JPMorgan Chase, Wells Fargo, Mastercard, and American Express, which show strong financial performance, positive earnings commentary, and generally supportive technical trends. These strengths are slightly offset by risks such as high leverage and cash flow challenges at some banks, occasional bearish or overbought technical signals, and the fund’s heavy concentration in the U.S. financial services sector, which can make it sensitive to credit conditions and the broader economic cycle.

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)

AUM2.07B

RegionNorth America

Expense Ratio0.38%

Beta0.98

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. Volume130,563

30 Day Avg. Volume112,633

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

104.31

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering100

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
BRK.B	Berkshire Hathaway B	12.70%	$261.79M	$1.04T	2.53%	66 Neutral
JPM	JPMorgan Chase	12.00%	$247.25M	$832.71B	14.44%	72 Outperform
V	Visa	7.83%	$161.37M	$615.41B	-5.84%	70 Outperform
MA	Mastercard	6.37%	$131.25M	$483.97B	-3.00%	75 Outperform
BAC	Bank of America	5.15%	$106.13M	$388.49B	14.90%	72 Outperform
WFC	Wells Fargo	4.09%	$84.32M	$279.85B	14.84%	80 Outperform
GS	Goldman Sachs Group	4.04%	$83.33M	$280.56B	46.07%	73 Outperform
MS	Morgan Stanley	3.18%	$65.64M	$290.53B	32.05%	76 Outperform
C	Citigroup	2.98%	$61.51M	$207.04B	42.10%	68 Neutral
AXP	American Express	2.72%	$56.15M	$242.59B	10.94%	80 Outperform

IYG Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price―

Price Trends

50DMA

91.01

Negative

100DMA

89.70

Positive

200DMA

86.46

Positive

Market Momentum

MACD

-0.51

Positive

RSI

44.16

Neutral

STOCH

28.84

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For IYG, the sentiment is Neutral. The current price of undefined is equal to the 20-day moving average (MA) of 92.04, equal to the 50-day MA of 91.01, and equal to the 200-day MA of 86.46, indicating a neutral trend. The MACD of -0.51 indicates Positive momentum. The RSI at 44.16 is Neutral, neither overbought nor oversold. The STOCH value of 28.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IYG.

IYG Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
IYG	―	―	$2.07B	0.38%	―
KBWB	―	―	$6.00B	0.35%	―
IYF	―	―	$4.19B	0.38%	―
FNCL	―	―	$2.40B	0.08%	―
FXO	―	―	$2.16B	0.62%	―
KBE	―	―	$1.53B	0.35%	―

Performance Comparison

IYG

iShares US Financial Services ETF

90.28

8.05

9.79%

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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