iShares US Broker-Dealers & Securities Exchanges ETF

IAI

Market cap $1.71B

Big banks will start releasing their quarterly numbers this week. Let's delve into the earnings potential of the big six banking companies, which could drive the performance of the sector ahead.

BlackRock's extensive ETF lineup, comprising roughly 200 funds, is offering a broad view of how long-term thematic and sector exposures have evolved.

Designed to provide broad exposure to the Financials - Brokers/ Capital markets segment of the equity market, the iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI) is a passively managed exchange traded fund launched on May 1, 2006.

The iShares U.S. Broker-Dealers & Securities Exchanges ETF offers a compelling, non-tech growth alternative with strong risk-adjusted returns and balanced capital markets exposure. IAI's portfolio is concentrated, with Goldman Sachs, Morgan Stanley, and S&P Global comprising ~40%, providing both growth spurts and volatility cushioning. While IAI has outperformed the S&P 500 over five years, it can underperform in bearish markets and is not truly market-agnostic but remains a strong long-term growth diversifier.

Designed to provide broad exposure to the Financials - Brokers/ Capital markets segment of the equity market, the iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI) is a passively managed exchange traded fund launched on May 1, 2006.

IAI has outperformed the S&P 500 and tech ETFs, driven by robust growth in broker-dealers and securities exchanges. The ETF's top holdings, like Robinhood and Goldman Sachs, are delivering exceptional financial results and share price gains. IAI offers strong liquidity, a competitive expense ratio, and valuations in line with the S&P 500, making it a solid investment vehicle.

Launched on May 1, 2006, the iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI) is a passively managed exchange traded fund designed to provide a broad exposure to the Financials - Brokers/ Capital markets segment of the equity market.

SHLD, ARKW, BUZZ and other U.S. ETFs are seeing gains ahead of July 4.

I reiterate my buy rating on IAI, as broker-dealer stocks show strong momentum and relative strength versus other Financials in 2025. IAI's diversified portfolio, solid long-term earnings growth, and bullish technicals support its premium valuation and alpha potential. The ETF's concentration risk and elevated volatility are notable, but strong liquidity and seasonal July tailwinds bolster my positive outlook.

If you're interested in broad exposure to the Financials - Brokers/ Capital markets segment of the equity market, look no further than the iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI), a passively managed exchange traded fund launched on 05/01/2006.