Beyond the Headlines: Is the Financial Sector Still the Best Value Play in 2026?
2026-02-18 17:55:00 ET
Banks have been on a good run in recent months, surging as investors took chips off the table in the red-hot tech and artificial intelligence (AI) sector and rotated into other unloved sectors like financials.
However, there has been a divergence this year. Small- and mid-cap bank stocks have outperformed large bank stocks , which had previously been outperforming the sector. That can be seen in the iShares U.S. Financials ETF (NYSEMKT: IYF) , an exchange-traded fund that holds stock in many of the largest banks in the country and is trading down 3% this year, despite the broader banking sector performing well.
Is the financials sector still the best value play in 2026?
NASDAQ: IYF
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