Morningstar Rating

ETF Research and Analysis

by Robert Goldsborough
Suitability
IShares US Financials IYF is appropriate as a tactical satellite holding for broad exposure to the U.S. financial-services sector. Unlike many other U.S. equity sectors, the financial-services sector still has never come   Read more 

Bull Case

Despite net-interest-margin pressure in the short term, over the longer term, higher interest rates should help U.S. banks.
Banks also are in general better capitalized than in the past, and capital ratios have been improving.
The U.S. economy has been improving. Read more 

Bear Case

IYF is more expensive than its peers.
Our analysts don't believe that interest-spread revenue at banks will grow anytime soon.
If interest rates rise, that could hamper underwriting activity at investment banks. Read more 

Foreign-Stock Exposure Without the Currency Risk 
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