IYF vs. FNCL: Which Financials ETF Is the Better Buy?

The iShares U.S. Financials ETF (NYSEMKT:IYF) offers a relatively more concentrated portfolio of industry leaders and boasts higher recent returns, while the Fidelity MSCI Financials Index ETF (NYSEMKT:FNCL) provides broader sector exposure with a significantly lower expense ratio.

Both funds aim to give investors exposure to the U.S. financial sector, including banks, insurers, and asset managers. While they overlap on many of their largest positions, their underlying indexes create different levels of diversification.