ETF Spotlight: International Financial Sector

ETF Trends

Financial sector ETFs are making a comeback this year after a miserable 2011.

International financial stocks are also recovering, reports Eric Dutram for Zacks. Quarter-to-date, the average return for financial ETFs with any focus or country target are up 2.3%. [How Financial ETFs may Benefit As Banks Get Safer]

The following three funds are intended for adventurous investors that are seeking momentum. The ETFs are all up more than 8% since July and have outperformed the broad market, reports Dutram.

  • SPDR S&P International Financial Sector ETF (IPF)  The fund has a 3.6% dividend payout and is up 8.5% since the start of the third quarter. AUM are low,which is the main drawback for this fund.The ETF focuses on 125 companies with heavy exposure going to countries like the UK, Australia, and Canada.
  • iShares MSCI Far East Financials Sector Index Fund (FEFN)  This ETF focuses in on the Asia-Pacific financial sector. The fund has added roughly 11.3%, although it is still down about 0.7%. It is worth noting that the fund is somewhat close to its 52 week high, and has a 2.85% yield. [iShares Tackles International Financials with New ETFs]
  • Global X Brazil Financials (BRAF)  The ETFhas gained just under 14% in the same time period aforementioned. This is even more impressive considering both its year-to-date and one year performances are still both in the  red. About one-third of the portfolio is dedicated to small or mid-caps. [List of Brazil ETFs]
  SPDR S&P International Financial Sector ETF 

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Tisha Guerrero contributed to this article. 

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

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