Investing

These Are the 10 Best-performing Financial ETFs

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If you are planning to invest in financial companies but aren’t sure of the stocks to pick, then one of the best ways is to invest in financial ETFs. Such ETFs provide investors exposure to a portfolio of stocks operating in the financial services industry, such as investment banks, insurance providers, regional and national banks and more. Let’s take a look at the 10 best-performing Financial ETFs.

10 Best-Performing Financial ETFs

We have used the one-year return data of the Financial ETFs (from money.usnews.com) to rank the 10 best-performing Financial ETFs.

  1. First Trust Financials AlphaDEX® ETF (FXO, 1%)

First Trust Financials AlphaDEX Fund (NYSEARCA:FXO) seeks to track the investment results of the StrataQuant® Financials Index. This ETF invests in common stocks and REITs (real estate investment trusts) that are part of the underlying index. FXO is down by almost 4% year to date and has more than $1.20 billion in net assets. The top four holdings of this ETF are: Coinbase Global, Jefferies Financial Group, LPL Financial Holdings, and Franklin Resources.

  1. UBS ETRACS Wells Fargo® Busn Dev Co ETN (BDCZ, 4%)

ETRACS MVIS Business Development Companies Index ETN (NYSEARCA:BDCZ) aims to offer investors exposure to the investment performance of the Wells Fargo® Business Development Company Index. BDCZ is down by almost 1% year to date and has more than $50 million in net assets. It has a net expense ratio of 0.85%.

  1. SPDR® S&P Bank ETF (KBE, 5%)

SPDR S&P Bank ETF (NYSEARCA:KBE) aims to track the performance of the S&P Banks Select Industry Index, which is composed of publicly traded national money centers and leading regional banks. KBE is down by almost 4% year to date and has more than $2 billion in net assets. The top four holdings of this ETF are: Rocket Companies, First Citizens Bancshares, Silvergate Capital Corp, and Texas Capital Bancshares.

  1. VanEck BDC Income ETF (BIZD, 5%)

VanEck BDC Income ETF (NYSEARCA:BIZD) aims to replicate the price and yield performance of the MVIS® US Business Development Companies Index. Business Development Companies (BDCs) are companies in which their main business is to invest and lend capital. BIZD is up by almost 1% year to date and has more than $500 million in net assets. The top four holdings of this ETF are: Ares Capital Corp, FS KKR Capital Corp, Owl Rock Capital Corp, and Main Street Capital Corporation.

  1. Invesco KBW Property & Casualty Ins ETF (KBWP, 5%)

Invesco KBW Property & Casualty Insurance ETF (NASDAQ:KBWP) seeks to track the performance of the KBW Nasdaq Property & Casualty Index, which is comprised of companies in the U.S. property and casualty insurance market. KBWP is up by over 4% year to date and has more than $200 million in net assets. It has an expense ratio of 0.35%. The top four holdings of this ETF are: Progressive Corp., Travelers Companies, American International Group, and Allstate Corp.

  1. SPDR® S&P Insurance ETF (KIE, 6%)

SPDR S&P Insurance ETF (NYSEARCA:KIE) aims to track the investment performance of the S&P Insurance Select Industry Index, which tracks the performance of public companies in the insurance industry. KIE is up by almost 2% year to date and has more than $500 million in net assets. It has an expense ratio of 0.35%. The top four holdings of this ETF are: Trupanion, Kinsale Capital Group, Arthur J. Gallagher & Co., and Brown & Brown, Inc.

  1. First Trust NASDAQ® ABA Community Bk ETF (QABA, 7%)

First Trust NASDAQ ABA Community Bank Index Fund (NASDAQ:QABA) seeks to track the investment result of the NASDAQ OMX® ABA Community Bank IndexSM equity index. QABA is down by over 2% year to date and has more than $100 million in net assets. It has an expense ratio of 0.60%. The top four holdings of this ETF are: Commerce Bancshares, First Financial Bankshares, Pinnacle Financial Partners, and Valley National Bancorp.

  1. SPDR® S&P Regional Banking ETF (KRE, 9%)

SPDR S&P Regional Banking ETF (NYSEARCA:KRE) seeks to track the performance of the S&P Regional Banks Select Industry Index. This ETF uses a sampling strategy. KRE is down by over 3% year to date and has more than $3.50 billion in net assets. It has an expense ratio of 0.35%. The top four holdings of this ETF are: First Citizens Bancshares, Silvergate Capital Corp, Old National Bancorp, and Cullen Frost Bankers.

  1. Invesco KBW Regional Banking ETF (KBWR, 10%)

Invesco KBW Regional Banking ETF (NASDAQ:KBWR) aims to track the investment results of the KBW Nasdaq Regional Banking IndexTM, which is composed of U.S. regional banking and thrift companies. KBWR is up by almost 1% year to date and has more than $80 million in net assets. It has an expense ratio of 0.35%. The top four holdings of this ETF are: Western Alliance Bancorp, Cullen Frost Bankers, Commerce Bancshares and East West Bancorp.

  1. iShares US Insurance ETF (IAK, 12%)

iShares US Insurance ETF (NYSEARCA:IAK) tracks the investment performance of the Dow Jones U.S. Select Insurance Index, which includes the U.S. equities in the insurance sector. IAK is up by over 7% year to date and has more than $350 million in net assets. It is a non-diversified ETF with an expense ratio of 0.39%. The top four holdings of this ETF are: Chubb Limited, Progressive Corp., Metlife, and American International Group.

This article originally appeared on ValueWalk

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