The iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI) was launched on 05/01/2006, and is a passively managed exchange traded fund designed to offer broad exposure to the Financials - Brokers/ Capital markets segment of the equity market.
I recommended IAI in July, despite an expensive valuation, given expected tailwinds for investment banks, brokers, and exchange operators. While the ETF continues to be dominated by strong and stable companies, the forward prospects now look uncertain. After a 20% increase in market value since the summer, it's time to downgrade my expectations for IAI.
If you're interested in broad exposure to the Financials - Brokers/ Capital markets segment of the equity market, look no further than the iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI), a passively managed exchange traded fund launched on 05/01/2006.
I have a buy rating on IAI due to its decent valuation, strong technicals, and a bullish seasonal backdrop. IAI offers exposure to U.S. investment banks, brokerages, and exchanges, with a compelling PEG ratio under 1.3. The ETF has a robust technical chart, recently hitting all-time highs, supported by a rising 200-day moving average and bullish RSI momentum.
The iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI) was launched on 05/01/2006, and is a passively managed exchange traded fund designed to offer broad exposure to the Financials - Brokers/ Capital markets segment of the equity market.
Designed to provide broad exposure to the Financials - Brokers/ Capital markets segment of the equity market, the iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI) is a passively managed exchange traded fund launched on 05/01/2006.
Financial firms representing IAI are actually outperforming the S&P 500, over the past year. The ETF is up nearly 32% over the past year. Companies within the ETF, such as CME Group and MarketAxess, show potential for growth through new client capture. Lower interest rates and increased market volatility are expected to benefit many constituent holdings in IAI. I'm optimistic and offer this ETF a Buy Rating.