Q: Good morning,
What are your thoughts on this relatively new ETF in the Financial sector and are there better alternatives that you would recommend?
Thank you.
What are your thoughts on this relatively new ETF in the Financial sector and are there better alternatives that you would recommend?
Thank you.
5i Research Answer:
The ETF is unhedged, it provides diversified exposure to the US financial sector (banks of different sizes, insurers, credit card companies), and it has a decent MER of 0.28%. It is slowly building its AUM ($49M), and so far its performance has been very close to XLF - a much more liquid ETF in the financials space. Largely, we would prefer XLF here.