iShares Global Financials ETF (NYSE:IXG) generally invests at least 80% of its assets in the component securities of its underlying index and in investments that have economic characteristics that are substantially identical to the component securities of its underlying index and may invest up to 20% of its assets in certain futures, options and swap contracts, cash and cash equivalents. The index measures the performance of companies that the index provider deems to be part of the financials sector of the economy and that the index provider believes are important to global markets.

finviz dynamic chart for  IXG

Fund Overview

  • Net Assets: 776.95 Millions
  • NAV: 66.37
  • Yield: 3.79%
  • Expense Ratio: 0.40%

Looking overseas, the $3 billion IXG fund from iShares allows a different kind of diversification by layering in big multinational financial firms. These include roughly 200 traditional banks, investment funds and insurance companies. This fund holds Berkshire and JPM as the top two holdings but holds at smaller weightings such as the Royal Bank of Canada, the Commonwealth Bank of Australia and Hong Kong’s AIA Group Ltd. in top 10 as well. This globally focused financial ETF has beaten the broader S&P 500 and in theory is more prepared to weather a downturn because of its diversified portfolio. Therefore, IXG is the best global financials ETF to hold for long term.

Top 10 Holdings (29.09% of Total Assets)

NameSymbol% Assets
Berkshire Hathaway Inc Class BBRK.B6.68%
JPMorgan Chase & CoJPM5.82%
Bank of America CorpBAC3.67%
Wells Fargo & CoWFC2.41%
AIA Group Ltd01299.HK1.84%
Royal Bank of CanadaRY.TO1.82%
Morgan StanleyMS1.81%
Citigroup IncC1.77%
Commonwealth Bank of AustraliaCBA.AX1.65%
Goldman Sachs Group IncGS1.62%

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