iShares U.S. Financials ETF Beats Regional Banks Peer Since 2021

The iShares U.S. Financials ETF (IYF) has generated a 60% total return since 2021, significantly outpacing the 5% total return delivered by the iShares U.S. Regional Banks ETF (IAT) over the same period. While the broader fund offers exposure to 143 holdings across banking, insurance, and investment firms, the regional banks fund concentrates on 30 institutions providing commercial and retail services in local markets.

Both funds charge an identical expense ratio of 0.37%, meaning an investor allocating $10,000 to either would pay $37 in annual management fees. The performance gap stems from their distinct strategies: IYF targets a broad swath of financial services stocks, including mega-cap banks and asset managers, whereas IAT focuses exclusively on small- and mid-sized regional lenders. Since 2021, IYF has achieved a compound annual growth rate of 9.8%, compared to a 1.1% CAGR for IAT.

Feature	iShares U.S. Financials ETF (IYF)	iShares U.S. Regional Banks ETF (IAT)
Total Return (Since 2021)	60%	5%
CAGR	9.8%	1.1%
Holdings	143	30
Expense Ratio	0.37%	0.37%
Dividend Yield	1.52%	2.87%
Launch Year	2000	2006

Income potential favors the narrower fund, which offers a dividend yield of 2.87% compared to IYF's 1.52%. Over the trailing 12 months, IAT paid $1.64 per share against a recent price of approximately $57.0, while IYF paid $1.95 per share on a recent price of approximately $128.2.

The largest positions in IYF include Berkshire Hathaway Inc Class B at 12.03%, Jpmorgan Chase & Co at 11.15%, and Bank Of America at 4.11%. In contrast, IAT's top holdings are Us Bancorp at 15.04%, Pnc Financial Services Group at 14.79%, and Truist Financial at 9.53%. IYF provides greater diversification and superior long-term performance, making it suitable for investors seeking broad sector exposure, while IAT serves those prioritizing a pure-play on regional lenders and higher relative income.