Overview of IYF
The iShares Dow Jones US Financial Sector ETF (IYF) seeks to track the performance of the Dow Jones U.S. Financials Index. It has a market capitalization of $1.1 billion as of February 26, 2016. On average, $5.4 million worth of its shares trade hands every day. Year-to-date, IYF has plunged 9.4% as worries of a global growth slowdown have triggered a sell-off in the financial sector.
IYF’s largest holdings are Wells Fargo (WFC), Berkshire Hathaway (BRK.A), JPMorgan Chase (JPM), and Bank of America (BAC). These stocks have weights of 6.4%, 6.3%, 6.1%, and 4.4%, respectively, in IYF.
Moving average analysis
On February 26, IYF closed at $79.9. This was below its 100-day and 50-day moving averages of $85.64 and $81.94, respectively. However, IYF broke above its 20-day moving average on February 16, signaling a bullish trend. Technical analysts view such crossovers as trend reversal signs.
The 14-day relative strength index (or RSI) for IYF is 52.1 as of February 26. This suggests that the stock is far from oversold levels but may be considered undervalued. An RSI figure of below 30 is an indication that a stock has been oversold, while an RSI figure of above 70 suggests that a stock has been overbought.
Read on to study how fund flows to IYF have fared so far.