5 Best Financial and Fintech ETFs To Buy

In this article, we discuss 5 best financial and fintech ETFs to buy. If you want to read our discussion on the finance industry, head directly to 12 Best Financial and Fintech ETFs To Buy. 

5. iShares U.S. Financial Services ETF (NYSE:IYG)

5-Year Share Price Performance as of March 22: 56.78%

iShares U.S. Financial Services ETF (NYSE:IYG) aims to mirror the performance of the Dow Jones U.S. Financial Services Index, which consists of American equities within the financial services sector. The fund offers exposure to different entities including U.S. investment banks, commercial banks, asset managers, credit card companies, and securities exchanges. The ETF was established on June 12, 2000. iShares U.S. Financial Services ETF (NYSE:IYG) features an expense ratio of 0.40% and net assets of $1.3 billion as of March 22, 2024. It is one of the best financial ETFs to invest in. 

Berkshire Hathaway Inc. (NYSE:BRK-B) is the largest holding of the iShares U.S. Financial Services ETF (NYSE:IYG). On February 24, Berkshire Hathaway Inc. (NYSE:BRK-B) reported a Q4 EPS of $3.92 and a revenue of $93.38 billion, outperforming Wall Street estimates by $0.12 and $12.69 billion, respectively. 

According to Insider Monkey’s fourth quarter database, 117 hedge funds were bullish on Berkshire Hathaway Inc. (NYSE:BRK-B), compared to 116 funds in the last quarter. Bill & Melinda Gates Foundation Trust is the largest stakeholder of the company, with nearly 20 million shares worth $7.10 billion.  

Here is what Black Bear Value Fund has to say about Berkshire Hathaway Inc. (NYSE:BRK-B) in its Q3 2022 investor letter:

“Going forward I expect Berkshire to compound at above average returns from this price. BRK is a collection of high-quality businesses, excellent management, and a good amount of optionality in their cash position. If the cash were to be deployed accretively, the true value would be greater than an 8% premium (as mentioned above). The combination of a pie that is growing, an increasing share of said pie due to stock buybacks, upside optionality from cash and a tight range of likely business outcomes that span a variety of economic futures gives me comfort in continuing to own Berkshire.”