2024-05-08 10:12:33 ET
Summary
- The value style of investing is expected to outperform the technology sector, which is over-owned and losing momentum.
- iShares U.S. Financial Services ETF is a passively managed fund that provides exposure to a diverse array of financial institutions.
- The IYG ETF has a top-heavy portfolio, with Warren Buffett's Berkshire Hathaway and JPMorgan Chase as the largest holdings, but it offers potential for growth in the financial services sector.
I'm bullish on the value style of investing on a relative basis. Technology, the driver of growth, looks tired momentum-wise, and over-owned. Within the value style tilt, what isn't over-owned is Financials. And yes - despite lingering concerns over credit, I think the Financials sector is due for outperformance. If you agree that there is both value and momentum potential in Financials, then the iShares U.S. Financial Services ETF ( IYG ) is worth considering....
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For further details see:
IYG: A Rotation To Financials Makes Sense