Should You Invest in the iShares MSCI Europe Financials ETF (EUFN)?

Launched on January 20, 2010, the iShares MSCI Europe Financials ETF (EUFN) is a passively managed exchange traded fund designed to provide a broad exposure to the Financials - Broad segment of the equity market.Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Financials - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 1, placing it in top 6%.Index DetailsThe fund is sponsored by Blackrock. It has amassed assets over $4.32 billion, making it one of the largest ETFs attempting to match the performance of the Financials - Broad segment of the equity market. EUFN seeks to match the performance of the MSCI Europe Financials Index before fees and expenses.The MSCI Europe Financials Index is a free float-adjusted market capitalization weighted index designed to measure the combined equity market performance of the financials sector of developed market countries in Europe.CostsWhen considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.Annual operating expenses for this ETF are 0.48%, making it on par with most peer products in the space.It has a 12-month trailing dividend yield of 3.67%.Sector Exposure and Top HoldingsEven though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.Looking at individual holdings, Hsbc Holdings Plc (HSBA) accounts for about 8.06% of total assets, followed by Allianz (ALV) and Banco Santander Sa (SAN).The top 10 holdings account for about 41.64% of total assets under management.Performance and RiskThe ETF has added roughly 53.77% and is up roughly 51.65% so far this year and in the past one year (as of 11/12/2025), respectively. EUFN has traded between $23.03 and $35.02 during this last 52-week period.The ETF has a beta of 0.93 and standard deviation of 18.01% for the trailing three-year period, making it a medium risk choice in the space. With about 102 holdings, it effectively diversifies company-specific risk.AlternativesiShares MSCI Europe Financials ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, EUFN is a good option for those seeking exposure to the Financials ETFs area of the market. Investors might also want to consider some other ETF options in the space.Vanguard Financials ETF (VFH) tracks MSCI US Investable Market Financials 25/50 Index and the Financial Select Sector SPDR ETF (XLF) tracks Financial Select Sector Index. Vanguard Financials ETF has $13.01 billion in assets, Financial Select Sector SPDR ETF has $53.30 billion. VFH has an expense ratio of 0.09%, and XLF charges 0.08%.Bottom LineTo learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.Boost Your Portfolio with Our Top ETF InsightsZacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.Don’t miss out on this valuable resource. It’s free!Get it now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report iShares MSCI Europe Financials ETF (EUFN): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks