By Carl Delfeld of the Chartwell ETF Advisor
Is now the right time to load up with financial sector exchange-traded funds? Even if you think that markets have over shot on the sell side, you still need to do your homework by looking undert he hood of the ETFs you are considering.
Take the example of a global financial sector ETF versus an international financial sector ETF. You might think that the holdings in each ETF basket are quite similar but you would be dead wrong.
Below are the top five holdings of the iShares Global Financials ETF (IXG)
JP Morgan (2.5%)
Mitsubishi UFJ (1.9%)
Compare this with the top holdings in the Wisdom Tree Int’l Financials ETF basket (DRF)
BNP Paribas (2.6%)
Both of these ETFs were up more than 2% yesterday. Which, if any, should you invest in right now? Go to Chartwell ETF right now and find out.