The iShares Global Financials ETF (NYSEArca: IXG) could be a different ballgame. Although not at significant weights, HSBC, Citi and Santander are all top-10 holdings in the $303.7 million IXG. Throw in RBS and the four stocks combine for 7% of IXG’s weight, according to iShares data.
Lingering concerns about the abilities of select European banks to withstand crisis conditions could prove more problematic for the iShares MSCI Europe Financials ETF (NasdaqGM: EUFN). The $481.5 million EUFN is up 6% since the start of February due in part to expectations that European banks would be significant contributors to the continent’s dividend growth this year. [Betting on European Banks]
HSBC, Santander and RBS combine for nearly 16% of EUFN’s weight. The ETF has a trailing 12-month yield of just 1.55%.
iShares MSCI Europe Financials ETF