Financial exchange funds (ETFs) offer diversification,
low fees and reliable income distributions. They hold financial
stocks including money center banks, regional banks, real estate
investment trusts (REITs), insurance, mortgage finance, stock exchanges,
investment banking and brokerage services.
The yields of 10 financial ETFs (table) with better than three
two percent yields make attractive investments for income and dividend-reinvestment
investors.
| 10
Financial ETFs |
| ETF and Web site |
Top Three Holdings |
Quote |
Yield |
| Financial
Select Sector SPDR |
JPM, BAC and C |
|
4.55% |
| iShares
Dow Jones U.S. Financial Sector Index Fund |
BAC, JPM and C |
|
3.38% |
| iShares
Dow Jones US Financial Services Index Fund |
BAC, JPM and C |
|
3.84%
|
| iShares
Dow Jones U.S. Regional Banks Index Fund |
USB, PNC and NTRS |
|
4.81% |
| iShares
S&P Global Financials Sector Index Fund |
HSBA, BAC and JPM |
|
6.87% |
| KBW
Bank ETF |
JPM, WFC and BAC |
|
5.83% |
| KBW
Regional Banking ETF |
VLY, PFS and FCF |
|
5.81% |
| PowerShares
FTSE RAFI Financials Sector |
C, BAC and JPM |
|
3.44% |
| Vanguard
Financials ETF |
JPM, BAC and C |
|
4.07% |
| WisdomTree
International Financial Sector Fund |
HSBA, RBS and BNP |
|
3.44% |
| Note: Top Three Holdings and Yield taken from
each ETF's Web site and finance.yahoo.com as of July 23, 2008.
|
Related Articles:
Exchange-Traded
Funds (ETFs) Offer Diversification With Low Fees
Money Center Banks Stocks Pay
Good Dividends
Portfolio of Regional Banks
Why Dividends
Matter
Posted July 23, 2008.
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