What are broad financials ETFs?
Financials ETFs own the companies that lend, insure, invest and move money: banks, insurers, brokers, asset managers and card networks. This guide covers 18 US-listed funds. Of the 15 with listed holdings, 9 own JPMorgan Chase and 9 own Berkshire Hathaway. Mastercard, Goldman Sachs, Wells Fargo, Morgan Stanley and Capital One each appear in 8 of them. Bank of America, Visa, Citigroup, Charles Schwab and BlackRock each appear in 7.
Most are index funds, which follow a published list of stocks rather than a manager's picks. XLF tracks the Financial Select Sector Index with 76 stocks, keeping 57.6% in its top 10 and 12.1% in Berkshire Hathaway. IYF (142 stocks), FNCL (383) and VFH (424) reach further into smaller companies. EUFN owns European financials led by HSBC, and IXG holds financials worldwide. RSPF gives each S&P 500 financial stock an equal weight, PFI follows a momentum index of stocks with strong price trends, and FXO tracks the StrataQuant Financials Index. DFNL and FDFF name no index and seek long-term growth of capital. SPXN is the odd one out: it tracks the S&P 500 with financials and real estate removed, so its largest holdings are NVIDIA, Apple and Microsoft.
Five funds use leverage, which magnifies moves, or bet against the sector. FAS aims for 3x its index's daily move and UYG for 2x, while FAZ (-3x), SKF (-2x) and SEF (-1x) aim for the opposite. Because these targets apply to single days, returns over months can stray far from the multiples.
Expense ratios, the yearly fee taken from fund assets, run from 0.08% for XLF to 1.03% for FAZ, with a median of 0.49%. FNCL and VFH charge nearly as little as XLF. The money is concentrated: 92.8% of assets sit in the five largest funds, XLF, VFH, IYF, EUFN and FNCL.
Broad financials ETF holdings: the stocks most funds own
The stocks that show up most often among the largest positions of the 15 biggest broad financials ETFs with holdings reports, from their latest N-PORT filings.
| Stock | Funds holding it | Typical weight |
|---|---|---|
| JPMorgan Chase & Co | 9 of 15 | 7.91% |
| Berkshire Hathaway Inc | 9 of 15 | 7.68% |
| Mastercard Inc | 8 of 15 | 3.88% |
| Goldman Sachs Group Inc | 8 of 15 | 2.97% |
| Wells Fargo & Co | 8 of 15 | 2.9% |
| Morgan Stanley | 8 of 15 | 2.76% |
| Capital One Financial Corp | 8 of 15 | 1.41% |
| Bank of America Corp | 7 of 15 | 4.61% |
| Visa Inc | 7 of 15 | 4.46% |
| Citigroup Inc | 7 of 15 | 2.46% |
| Charles Schwab Corp | 7 of 15 | 1.92% |
| Blackrock Inc | 7 of 15 | 1.83% |
Typical weight is the median share of each fund’s assets in the stock, among the funds that hold it in their 25 largest positions.
The largest broad financials ETFs, side by side
Swipe the table to see all 5 funds.
| XLF | VFH | IYF | EUFN | FNCL | |
|---|---|---|---|---|---|
| Net assets | $51.35B | $14.77B | $4.43B | $4.20B | $2.38B |
| Expense ratio | 0.08% | 0.09% | 0.37% | 0.49% | 0.08% |
| Holdings | 76 | 424 | 142 | 90 | 383 |
| In the 10 largest | 57.57% | 45.67% | 48.71% | 45.03% | 48.43% |
| Biggest holding | Berkshire Hathaway Inc (12.08%) | JPMorgan Chase & Co (10.47%) | Berkshire Hathaway Inc. (11.35%) | HSBC Holdings plc (9.91%) | JPMorgan Chase & Co (10.43%) |
| Yield | 1.47% | 1.71% | 1.5% | 4.37% | 1.63% |
| 1-year return | +9.9% | +10.0% | +6.7% | +16.9% | +6.5% |
| 3 years, a year | +22.7% | +23.4% | +24.4% | +34.6% | +23.6% |
| 5 years, a year | +8.9% | +8.8% | +9.8% | +18.2% | +8.8% |
| Worst drop, past year | -14.8% | -14.8% | -13.9% | -14.7% | -14.8% |
| Launched | 1998 | 2004 | 2000 | 2010 | 2013 |
The largest ordinary funds by net assets (leveraged and inverse funds are listed further down). Holdings from each fund’s latest N-PORT report; returns include reinvested distributions, as of Oct 30, 2026.
Head to head
XLF vs VFH
XLF and VFH share 83.2% of their assets, so they mostly own the same companies. XLF tracks the Financial Select Sector Index with 76 stocks, keeping 57.6% in its top 10 and 12.1% in Berkshire Hathaway. VFH spreads across 424 stocks, with 45.7% in its top 10 and JPMorgan Chase largest at 10.5%. Fees are nearly identical at 0.08% and 0.09% a year. In the year to October 29, 2026, both returned 11% and had a worst drop of 14.8%. XLF may suit investors who want a shorter list of large companies; VFH may suit those who also want smaller firms.
VFH vs FNCL
These two are near twins: they share 95.1% of their assets across 374 common stocks. VFH holds 424 stocks; FNCL, which tracks the MSCI USA IMI Financials 25/50 Index, holds 383. Both have JPMorgan Chase as their largest holding, at 10.5% and 10.4%, with 45.7% and 48.4% in their top 10. FNCL charges 0.084% a year and VFH 0.09%. In the year to October 29, 2026, VFH returned 11% and FNCL 6.5%, and both had a worst drop of 14.8%. Either may suit investors who want wide, low-cost coverage of US financials.
XLF vs EUFN
These two share no holdings at all: 0% overlap. XLF owns US financials, led by Berkshire Hathaway at 12.1%, with 57.6% in its top 10. EUFN tracks developed-market European financials, led by HSBC at 9.9%, then Banco Santander, Allianz and UBS, with 45% in its top 10. EUFN costs 0.49% a year to XLF's 0.08%, but yielded 4.37% to XLF's 1.46%. In the year to October 29, 2026, EUFN returned 16.9% and XLF 11%, with worst drops of 14.7% and 14.8%, though EUFN swung more. EUFN may suit investors seeking financials outside the US; XLF may suit those focused on US companies.
How much do the largest broad financials ETFs overlap?
Owning two funds that hold the same stocks adds little diversification. Overlap here is the share of assets two funds have in common: for each stock both own, the smaller of its two weights, added up.
| Funds | Assets in common | Shared holdings | |
|---|---|---|---|
| VFH and FNCL | 95.1% | 374 | |
| XLF and FNCL | 86.1% | 76 | |
| XLF and VFH | 83.2% | 76 | |
| XLF and IYF | 78.7% | 63 | |
| IYF and FNCL | 75.5% | 134 | |
| VFH and IYF | 75.2% | 131 | |
| XLF and EUFN | 0% | 0 | |
| VFH and EUFN | 0% | 0 | |
| IYF and EUFN | 0% | 0 | |
| EUFN and FNCL | 0% | 0 |
From each fund’s full holdings in its latest N-PORT report.
How have broad financials ETFs performed?
The five largest ordinary funds: growth from the start of the range, distributions reinvested. The dashed gray line is the S&P 500 (SPY).
Best-performing broad financials ETFs over the past year
| # | Fund | Net assets | Cost | 1 mo | YTD | 1 yr | 3 yr |
|---|---|---|---|---|---|---|---|
| 1 | EUFN iShares MSCI Europe Financials ETF | $4.20B | 0.49% | -7.6% | +5.5% | +16.9% | +34.6% |
| 2 | SPXN ProShares S&P 500 Ex-Financials ETF | $79.7M | 0.09% | -0.5% | +15.4% | +14.9% | +25.3% |
| 3 | IXG iShares Global Financials ETF | $585.8M | 0.38% | -1.0% | +8.2% | +14.3% | +27.6% |
| 4 | PSCF Invesco S&P SmallCap Financials ETF | $30.3M | 0.29% | +0.9% | +11.0% | +13.5% | +20.6% |
| 5 | FXO First Trust Financials AlphaDEX Fund | $1.13B | 0.6% | +2.8% | +7.4% | +12.6% | +24.3% |
| 6 | DFNL Davis Select Financial ETF | $479.6M | 0.61% | +1.2% | +2.8% | +12.3% | +27.4% |
| 7 | VFH Vanguard Financials ETF | $14.77B† | 0.09% | +5.6% | +4.2% | +10.0% | +23.4% |
| 8 | XLF Financial Select Sector SPDR Fund | $51.35B | 0.08% | +5.8% | +4.4% | +9.9% | +22.7% |
| 9 | RSPF Invesco S&P 500 Equal Weight Financials ETF | $304.7M | 0.4% | +2.1% | +4.5% | +7.7% | +21.1% |
| 10 | IYF iShares U.S. Financials ETF | $4.43B | 0.37% | +0.8% | +2.1% | +6.7% | +24.4% |
Funds with at least $25 million in net assets; leveraged and inverse funds left out. Past returns don’t predict future returns.
How broad financials ETFs did in past market crashes
| Fund | 2008 crash | 2020 crash | 2022 drop |
|---|---|---|---|
| XLF | not yet launched | not yet launched | -22.3% |
| VFH | not yet launched | not yet launched | -22.3% |
| IYF | -78.3% | -42.4% | -21.7% |
| EUFN | not yet launched | -43.6% | -30.0% |
| FNCL | not yet launched | -44.3% | -22.2% |
| S&P 500 (SPY) | -55.2% | -33.7% | -24.5% |
Total return from the stock market’s peak to its low in each fall, distributions reinvested.
What drives broad financials ETFs?
Financial companies earn money from several sources, each tied to a different part of the economy. Banks such as JPMorgan Chase and Wells Fargo rely on net interest income, the gap between what they earn on loans and what they pay on deposits, so interest rates and loan demand matter. When the economy weakens, more borrowers default and loan losses rise. Investment banks such as Goldman Sachs and Morgan Stanley lean more on trading and deal-making fees, which follow market activity. Visa and Mastercard take a small fee on card spending, so consumer spending drives them. Insurers depend on claims and investment returns, and capital rules set by regulators limit how much banks can lend or pay shareholders.
Those links to the economy show in past downturns. In the 2008 financial crisis, IYF fell 78.3%, against 55.2% for the S&P 500. In the 2020 COVID crash, IYF fell 42.4%, EUFN 43.6% and FNCL 44.3%, all deeper than the S&P 500's 33.7%. In the 2022 bear market, a long slide in stock prices, US financials held up slightly better: XLF and VFH fell 22.3%, FNCL 22.2% and IYF 21.7%, against 24.5% for the S&P 500. EUFN, which owns European financials, fell 30%.
Broad financials ETFs with the lowest expense ratios
| # | Fund | Expense ratio | On $10,000 | Net assets |
|---|---|---|---|---|
| 1 | XLF Financial Select Sector SPDR Fund | 0.08% | $8 a year | $51.35B |
| 2 | FNCL Fidelity MSCI Financials Index ETF | 0.08% | $8 a year | $2.38B |
| 3 | VFH Vanguard Financials ETF | 0.09% | $9 a year | $14.77B |
| 4 | SPXN ProShares S&P 500 Ex-Financials ETF | 0.09% | $9 a year | $79.7M |
| 5 | PSCF Invesco S&P SmallCap Financials ETF | 0.29% | $29 a year | $30.3M |
Ordinary funds with at least $10 million in net assets. The median ordinary broad financials ETF charges 0.38% a year; leveraged and inverse funds usually charge more.
Do broad financials ETFs pay dividends?
13 of the 13 ordinary broad financials ETFs with a page here paid distributions over the last 12 months, with a median yield of 1.54%.
| Highest yields | Yield | Net assets |
|---|---|---|
| EUFN iShares MSCI Europe Financials ETF | 4.37% | $4.20B |
| PSCF Invesco S&P SmallCap Financials ETF | 2.22% | $30.3M |
| FXO First Trust Financials AlphaDEX Fund | 2.2% | $1.13B |
| IXG iShares Global Financials ETF | 2.2% | $585.8M |
| VFH Vanguard Financials ETF | 1.71% | $14.77B |
Distributions over the last 12 months divided by the price; funds with at least $25 million in net assets.
How to choose a broad financials ETF
- Yearly fees range widely. XLF charges 0.08% a year, FNCL 0.084% and VFH 0.09%, and all three rank among the five largest funds. IYF charges 0.37%, EUFN 0.49%, and FXO, PFI and DFNL about 0.6%.
- How much rides on a few stocks. XLF keeps 57.6% in its top 10 and 12.1% in Berkshire Hathaway. DFNL holds just 34 stocks, with 56.3% in its top 10. RSPF and FXO spread money wider, with 14.9% and 18.1% in their top 10.
- How holdings are picked and weighted. XLF, VFH and FNCL follow sector indexes where the biggest companies weigh most. RSPF weights each S&P 500 financial equally, PFI follows a momentum index, and DFNL and FDFF name no index, aiming for long-term growth of capital.
- US only, Europe or worldwide. Most of these funds hold US companies. EUFN owns developed-market European financials such as HSBC, Banco Santander and Allianz, and has no overlap with XLF or VFH. IXG holds financials worldwide, though Berkshire Hathaway and JPMorgan Chase still lead it.
- Leveraged and inverse funds reset daily. FAS, UYG, FAZ, SKF and SEF target a multiple of one day's move. UYG aims for 2x its index daily, yet returned 5.2% in the year to October 29, 2026, against 11% for XLF, which tracks the same sector index.
- SPXN is not a financials fund. SPXN sits here but does the opposite: it tracks the S&P 500 with financials and real estate removed, led by NVIDIA, Apple and Microsoft. It may suit investors who own financials separately and want the rest of the market.
What are the risks of broad financials ETFs?
- Heavy weight in a few giants. JPMorgan Chase and Berkshire Hathaway sit in 9 of the 15 funds with listed holdings. XLF keeps 57.6% in its top 10 and 12.1% in Berkshire alone, so trouble at one company can move the whole fund.
- Steeper falls in crises. In the 2008 financial crisis, IYF fell 78.3%, against 55.2% for the S&P 500. In the 2020 COVID crash, IYF, EUFN and FNCL fell between 42.4% and 44.3%, deeper than the S&P 500's 33.7%.
- Leveraged and inverse funds can fall fast. FAS, UYG, FAZ, SKF and SEF reset each day, so losses can compound in choppy markets. In the year to October 29, 2026, FAS dropped as far as 40.9% from a high and FAZ 45.3%, against 14.8% for XLF.
- Europe adds currency and bigger swings. EUFN's dollar returns also rise and fall with European currencies. Its volatility, a measure of price swings, was 20.8% in the year to October 29, 2026, against 14.7% for XLF. It fell 30% in 2022, versus 22.3% for XLF.
- Owning several funds adds little variety. The largest US funds overlap heavily: VFH and FNCL share 95.1% of their assets, and XLF shares 83.2% with VFH and 86.1% with FNCL. Holding two of them mostly doubles up on the same banks and insurers.
Leveraged and inverse broad financials ETFs (2x and 3x)
These funds aim for a multiple, or the opposite, of one day’s return, and reset every day. Held for longer than a day, their results can drift far from that multiple, especially when prices swing. They are trading tools, not long-term holdings. Why leveraged ETFs decay →
List of all broad financials ETFs, by size
| # | Fund | Net assets | Cost | Yield | YTD | 1 yr | 5 yr |
|---|---|---|---|---|---|---|---|
| 1 | XLF Financial Select Sector SPDR Fund | $51.35B | 0.08% | 1.47% | +4.4% | +9.9% | +8.9% |
| 2 | VFH Vanguard Financials ETF | $14.77B† | 0.09% | 1.71% | +4.2% | +10.0% | +8.8% |
| 3 | IYF iShares U.S. Financials ETF | $4.43B | 0.37% | 1.5% | +2.1% | +6.7% | +9.8% |
| 4 | EUFN iShares MSCI Europe Financials ETF | $4.20B | 0.49% | 4.37% | +5.5% | +16.9% | +18.2% |
| 5 | FNCL Fidelity MSCI Financials Index ETF | $2.38B | 0.08% | 1.63% | +3.1% | +6.5% | +8.8% |
| 6 | FAS Direxion Daily Financial Bull 3X Shares Leveraged | $2.35B | 0.88% | 9.17% | -4.0% | +2.5% | +5.5% |
| 7 | FXO First Trust Financials AlphaDEX Fund | $1.13B | 0.6% | 2.2% | +7.4% | +12.6% | +8.9% |
| 8 | UYG ProShares Ultra Financials Leveraged | $827.5M | — | 11.35% | +0.1% | +5.2% | +10.1% |
| 9 | IXG iShares Global Financials ETF | $585.8M | 0.38% | 2.2% | +8.2% | +14.3% | +12.4% |
| 10 | DFNL Davis Select Financial ETF | $479.6M | 0.61% | 1.33% | +2.8% | +12.3% | +11.7% |
Questions investors ask about broad financials ETFs
What is the largest financials ETF?
XLF, the Financial Select Sector SPDR Fund from State Street, is the largest by a wide margin, with more net assets than all the other funds in this guide combined. Launched in 1998, it tracks the Financial Select Sector Index and holds 76 stocks, led by Berkshire Hathaway at 12.1% and JPMorgan Chase at 11.6%. Vanguard's VFH is the next largest, followed by IYF, EUFN and FNCL.
What is the cheapest financials ETF?
XLF has the lowest expense ratio among these funds, at 0.08% a year, followed by FNCL at 0.084% and VFH at 0.09%. SPXN also charges 0.09%, but it tracks the S&P 500 with financials and real estate removed, so it does not own the sector. For smaller financial companies, PSCF charges 0.29%. At the other end, the inverse fund FAZ charges 1.03%.
XLF vs VFH: what's the difference?
The main difference is breadth. XLF holds 76 stocks and keeps 57.6% in its top 10, with Berkshire Hathaway first at 12.1%. VFH holds 424, adding many smaller companies, with 45.7% in its top 10 and JPMorgan Chase first. They share 83.2% of their assets, and their fees are nearly the same at 0.08% and 0.09% a year. In the year to October 29, 2026, both returned 11%.
Do financials ETFs pay dividends?
Yes. All 13 funds in this guide with a reported yield pay dividends, and their median yield was 1.54% as of October 29, 2026. EUFN, which owns European financials, yielded the most at 4.37%, followed by FXO and IXG at 2.2%. Among the large US funds, VFH yielded 1.7%, FNCL 1.63% and XLF 1.46%.
Which financial ETFs hold Berkshire Hathaway?
Most of the large ones do. Berkshire Hathaway appears in 9 of the 15 funds with listed holdings. It is the largest holding in XLF at 12.1%, in IYF at 11.4% and in IXG at 6.1%. It also makes up 7.9% of FNCL and 7.7% of VFH. DFNL, run by Davis Advisers, holds 5.3%. EUFN, which owns only European financials, does not hold it.
How many financials ETFs are there?
This guide covers 18 US-listed financials ETFs from State Street, Vanguard, iShares, Fidelity, Invesco, First Trust, Direxion, ProShares and Davis Advisers. Five are leveraged or inverse trading funds. SPXN is also in the group, even though it excludes financials. Most of the money sits in a few funds: the five largest, XLF, VFH, IYF, EUFN and FNCL, hold 92.8% of the group's assets.
What are FAS and FAZ?
FAS and FAZ are Direxion's 3x bull and bear funds on financial stocks, and they are built for short-term trading. FAS aims for 300% of its index's daily move and FAZ for 300% of the opposite move. Direxion says neither seeks that result over any period longer than one trading day. Over longer stretches, compounding pulls returns away from 3x. In the year to October 29, 2026, FAS returned 2.5% and FAZ lost 15%, while XLF returned 11%. ProShares offers UYG (2x), SKF (-2x) and SEF (-1x).
Do Vanguard and Fidelity have financials ETFs?
Yes. Vanguard's VFH holds 424 stocks and charges 0.09% a year. Fidelity's FNCL tracks the MSCI USA IMI Financials 25/50 Index, holds 383 stocks and charges 0.084%. The two share 95.1% of their assets, and JPMorgan Chase is the largest holding in both, at 10.5% and 10.4%. Fidelity also runs FDFF, a 46-stock fund launched in 2023. FDFF names no index, charges 0.5% and is led by BlackRock and Capital One.
Is there a Vanguard, Fidelity or Schwab financials ETF?
Yes. Vanguard offers one: VFH (Vanguard Financials ETF). Fidelity offers 2: FNCL (Fidelity MSCI Financials Index ETF), FDFF (Fidelity Disruptive Finance ETF). Schwab doesn’t have a financials ETF.
