IYG: ISHARES U.S. FINANCIAL SERVICES ETF
Share-split context: A forward split was recorded on Mar 7, 2024 with coefficient 3. A forward split turns each old share into multiple new shares and lowers the quoted price per share proportionally. Proportional ownership is unchanged at the split moment, so the split itself creates neither a gain nor a loss. The price-return figures in this report are already split-adjusted.
What this ETF is trying to do
The ISHARES U.S. FINANCIAL SERVICES ETF (IYG) is designed to provide exposure to the financial services sector in the United States. This means the fund invests in companies that handle money, such as banks and payment processors.
The fund holds a variety of large companies. According to the most recent data, its top holdings include:
• Berkshire Hathaway Inc Class B (13.42%)
• JPMorgan Chase & Co (12.94%)
• Visa Inc Class A (8.83%)
• Mastercard Inc Class A (6.43%)
• Bank of America Corp (5.23%)
Please note that this list is a partial view of the fund's holdings, and the companies held by an ETF can change over time.
What the numbers show
When looking at how this ETF has performed, it is important to distinguish between price return (the change in the share price) and total return (which includes the value of distributions).
• Year-to-Date (YTD): The YTD price return is approximately -1.97%. When including distributions, the YTD total return is approximately -1.13%.
• One-Year: The one-year price return was approximately 1.57%, while the one-year total return was approximately 2.74%.
• Three-Year: Over the last three years, the price return was approximately 76.74%, and the total return was approximately 83.38%.
The fund has a history of forward splits. Most recently, on March 7, 2024, a forward split occurred with a coefficient of 3. In a forward split, each old share becomes multiple new shares, and the price per share falls proportionally. This change does not create a gain or a loss for the investor; it simply changes how many shares you own.
Income and distribution explanation
IYG provides cash distributions to investors. The current distribution yield is approximately 1.14%. This number describes the cash paid out relative to the current ETF price. The fund usually pays these distributions on a quarterly basis, having made 4 payments over the last 12 months.
NAV erosion explanation
"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.
However, we can look at the erosion-risk score. IYG has an erosion score of 94, which is labeled as "Stable / sideways," and the erosion severity is rated as "good." There is no severe erosion-risk flag for this ETF.
Pros
• Strong Long-Term Price Growth: The three-year price return has been quite high at approximately 76.74%.
• Stable Risk Profile: The erosion-risk score suggests the price trend has been relatively stable.
• High Income Rating: The fund has an income rating grade of "A."
Cons
• Recent Price Decline: The year-to-date price return has been negative.
• Sector Concentration: Because this ETF focuses on financial services, its performance is tied to that specific industry.
Beginner takeaway
IYG is an ETF focused on the U.S. financial sector. While it has seen significant price growth over a three-year period, its performance in the current year has been slightly negative. Investors interested in income should note the 1.14% distribution yield, but remember that price changes and distributions are two different parts of an investment's total performance.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | BERKSHIRE HATHAWAY INC CLASS B | BRK-B | 13.42% |
| 2 | JPMORGAN CHASE & CO | JPM | 12.94% |
| 3 | VISA INC CLASS A | V | 8.83% |
| 4 | MASTERCARD INC CLASS A | MA | 6.43% |
| 5 | BANK OF AMERICA CORP | BAC | 5.23% |
| 6 | THE GOLDMAN SACHS GROUP INC | GS | 3.96% |
| 7 | WELLS FARGO & CO | WFC | 3.60% |
| 8 | MORGAN STANLEY | MS | 3.42% |
| 9 | CITIGROUP INC | C | 3.18% |
| 10 | CHARLES SCHWAB CORP | SCHW | 2.34% |