VFH offers comprehensive coverage of the U.S. financials sector, which mitigates company-specific risk. It also has the lowest expense ratio of any major financial services ETF.
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, with improving capital ratios, and banks have done a fine job cutting expenses. Read more