Financial sector ETFs hold Citigroup
Many financial sector ETFs hold Citigroup (C) because of its size and diversified services. Large-cap banks and diversified financial services firms are preferred by financial-sector-focused ETFs.
Here’s how Citigroup figures in the portfolios of the five ETFs that hold most in the bank:
- the iShares US Financial Services (IYG) – It tracks the Dow Jones US Financial Services Index. Citigroup constitutes ~7% of IYG’s portfolio. The ETF has total assets of ~$650 million. It has an expense ratio of 0.43%. The ratio is much higher compared to competitors XLF and VFH. The chart above shows the top ten holdings of this ETF.
- the Financial Select Sector SPDR ETF (XLF) – This ETF tracks the Financial Select Sector Index. It has total net assets of around $21 billion and an expense ratio of 0.15%. Citigroup forms ~5% of the ETF.
- the Vanguard Financials ETF (VFH) – This ETF tracks the MSCI US Investable Market Index Financials 25/50. The ETF has total assets of ~$2.7 billion. It has an expense ratio of 0.12%. Citigroup constitutes ~4% of VFH’s portfolio.
- the iShares US Financials (IYF) – This ETF tracks the Dow Jones US Financials Index. It has total assets of ~$2.5 billion and an expense ratio of 0.43%. Citigroup constitutes ~4% of IYF’s portfolio.
- the ProShares Ultra Financials (UYG) – This ETF seeks daily returns that correspond to two times the daily performance of the Dow Jones US Financials Index. The fund also invests in derivatives. The ETF has total assets of ~$870 million. It has an expense ratio of 0.95% with a contractual waiver. Citigroup forms ~4% of the ETF.
Other key ETFs holding Citigroup
Broad market ETFs also hold Citigroup. Citigroup has a large market capitalization and so is a part of the S&P 500 Index. The weight of a stock in the S&P 500 Index is based on the market cap of the stock. ETFs tracking S&P 500, such as the SPDR S&P 500 ETF Trust (SPY) and the iShares Core S&P 500 (IVV), also, of course, hold Citigroup.
Citigroup is considered a value stock based on its low price-to-book ratio. It makes up part of value-focused ETFs such as the iShares Russell 1000 Value ETF (IWD) and the iShares S&P 500 Value ETF (IVE).