iShares US Financials ETF

IYF

Market cap $3.92B

Launched on May 22, 2000, the iShares U.S. Financials ETF (IYF) is a passively managed exchange traded fund designed to provide a broad exposure to the Financials - Broad segment of the equity market.

Investors have rotated out of big tech and artificial intelligence and into lagging sectors like financials. Financials have underperformed the broader market for many years now.

Growing weariness around the AI trade and escalating AI-related disruption fears are weighing on vulnerable companies and sectors, as highlighted by the recent sell-off in U.S. software and data services stocks. At the same time, Wall Street's scrutiny of Big Tech's AI spending has intensified, with investors reacting negatively to signals of further capital expenditure expansion.

The Big 4 banks—JPM, WFC, C, BAC—signal a transition to a stable, post-rate-shock environment with resilient consumer credit and moderate loan growth. Banks expect net interest income to plateau, but manageable costs and operating leverage—driven by AI and efficiency—support bottom-line growth.

Financial-sector ETFs rebounded as gains in major Wall Street banks and dealmakers helped blunt the lingering policy noise, underlining the sector's resilience after a volatile start to the week.

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.

I maintain a buy rating on iShares US Financials ETF (IYF), driven by attractive valuations and robust technical momentum. IYF benefits from sector tailwinds: M&A, IPOs, corporate debt underwriting, and favorable rate trends, supporting outperformance into 2026. The ETF's low 14.5x P/E, 12% long-term EPS growth, and 1.20x PEG ratio underscore its compelling risk/reward profile.

Looking for broad exposure to the Financials - Broad segment of the equity market? You should consider the iShares U.S. Financials ETF (IYF), a passively managed exchange traded fund launched on May 22, 2000.

Softer inflation and dovish signals point to more 2026 rate cuts. These ETFs can help investors ride potential gains.

The Investment Committee give you their top stocks to watch for the second half.