iShares U.S. Financials ETF

iShares U.S. Financials ETF (IYF) holds 142 U.S. banks, insurers, brokers and asset managers by tracking a Russell 1000 financials index. The index caps single companies, but Berkshire Hathaway and JPMorgan Chase together still made up about 23% of the fund as of July 31, 2026. Its 0.37% expense ratio is roughly four times that of Financial Select Sector SPDR Fund (0.08%) and Vanguard Financials ETF (0.09%), which hold many of the same stocks.

• Over the year to Oct 27, 2026, IYF returned +6.7%, 7th of 9 among similar funds.
• Its 5-year annualized return was +9.8% and its 10-year +13.1%.
• In the 2020 COVID crash it fell 42.5% and regained its old high 10.7 months after the low.
• Its worst full calendar year was 2008 (-51.1%); its best was 2013 (+33.8%).
• The deepest fall in its price history was 79.6% (Feb 20, 2007 to Mar 6, 2009), recovered by Mar 1, 2017.

As of Jul 31, 2026, the fund held 142 securities; the ten largest made up 48.71% of assets.

By sector

• Over the three months to Jul 31, 2026, investors added a net $710.1M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: -1.18%, +4.15%, +5.58%.

IYF tracks the Russell 1000 Financials 40 Act 15/22.5 Daily Capped Index. The index comes from FTSE Russell, part of the London Stock Exchange Group. It starts with the Russell 1000, which covers roughly the 1,000 largest U.S. companies, and keeps those in the financials sector. That means it can include mid-size firms as well as giants. Stocks are weighted by float-adjusted market value: bigger companies count for more, measured only by the shares available to trade.

A few companies dominate the sector, so the index applies caps. At each quarterly rebalance, no single company can exceed 15%. Companies above 4.5% can make up no more than 22.5% combined. Between reviews the index is checked daily. If companies above 4.8% pass 24% combined, it is recapped. As of July 31, 2026, the two largest holdings were Berkshire Hathaway (11.4%) and JPMorgan Chase (11.2%).

BlackRock's fund adviser (BFA) uses representative sampling. It buys a sample of stocks built to behave like the index and may not hold every one. At least 80% of assets go into index components. The fund may also hold cash, use derivatives such as futures (it held a tiny futures position as of July 31, 2026) and lend out up to one-third of its assets. Portfolio turnover was 9%, so trading is light.

• IYF charges 0.37% a year, versus an average of 0.3% for the similar funds below (5th of 9, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $38 in the first year and $468 over 10 years (assuming a 5% annual return).

IYF holds a single sector that fell nearly 80% in the 2007–2009 crisis, so it works better as a small add-on than as a core holding.

IYF could add focused exposure to U.S. banks, insurers and brokers, but its history shows how hard this sector can fall. In the 2008 financial crisis it lost 78.5%. Its deepest drop, 79.6% from February 2007 to March 2009, did not fully recover until March 2017, almost eight years later. Its worst calendar year was 2008, when it fell 51.1%. It dropped 42.5% in the 2020 COVID crash and took about 11 months to recover. In 2022 it fell 25.1% and took 16 months to recover. Anyone selling shares to pay for living costs during slumps like these would lock in deep losses.

The fund paid a 1.5% yield over the 12 months to October 27, 2026, in quarterly payments, so it is a modest source of income. In the SEC's standard example, its 0.37% expense ratio costs $38 over one year on $10,000. Past results don't predict future returns. A plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.