The best financials ETFs

How to invest in the financials sector using ETFs

With sector ETFs, you invest in a specific part of the economy, for example in the financials sector. The most widely used standard in the financial industry for dividing the economy into sectors is the Global Industry Classification Standard (GICS). The major index providers MSCI and S&P use this standard consisting of 11 sectors and 68 assigned industries.

For the classification of listed companies in each sector, the index providers analyse in which business segment companies are generating the majority of their sales and profits. Additionally, the positioning and public perception of a company are also taken into account.
0.25% p.a. - 0.35% p.a.
annual total expense ratio (TER) of financials ETFs
on the financials sector, which is tracked by ETFs
on the financials sector
 
The best indices for financials ETFs

How do I invest in the financials sector?

An industry or sector index consists of all the companies of a certain sector starting from a parent index. For example, the MSCI World Financials index tracks all companies from the financials sector that are included in the MSCI World. A global financials ETF thus gives you the opportunity to invest in the largest finance companies worldwide.

Sector ETFs of this type should not be mixed up with thematic ETFs. Thematic ETFs track a non-standardised industry group and a specific investment theme. We provide you with an overview of the available thematic ETFs here.
 
justETF tip: You can find out more about sector ETFs in our articles Investing in different sectors via ETFs and What sort of sector ETFs are available?.
 

Which companies are included in financials ETFs?

Companies from the financials sector are banks, insurers and financing specialists such as mortgage banks including mortgage REITs. The financials sector also includes companies involved in asset management, investment banking, the operation of financial exchanges and the distribution of financial data. You can invest in a specific aspect of the financials sector via fintech ETFs.

In this investment guide, you will find all ETFs that allow you to invest globally in companies from the financials sector. For a performance comparison of the various ETF sectors, please have a look at our market overview.

MSCI World Financials performance

1 month: -2.64%
1 year: 29.50%
3 years: 41.08%
5 years: 51.23%
 

Financials ETFs in comparison

The most important factors at a glance
In the table below we have listed the currently available financials ETFs. Via the "Properties" and "Performance" tabs, you can find detailed information on these ETFs and sort them according to your desired criterion. More information about the different criteria when choosing an ETF can be found in our article on ETF selection.
 
ETF
ISIN
Fund size
in m GBP
TER
in %
Inception date Use of profits Fund domicile Replication method
Lyxor MSCI World Financials TR UCITS ETF - Acc (USD)LU0533033071 861 0.30% p.a. 23/08/2010 Accumulating Luxembourg Unfunded swap
Xtrackers MSCI World Financials UCITS ETF 1CIE00BM67HL84 789 0.25% p.a. 04/03/2016 Accumulating Ireland Optimized sampling
SPDR MSCI World Financials UCITS ETFIE00BYTRR970 339 0.30% p.a. 29/04/2016 Accumulating Ireland Full replication
Amundi ETF MSCI World Financials UCITS ETF USDLU1681045966 12 0.35% p.a. 31/01/2018 Accumulating Luxembourg Unfunded swap
ETF
ISIN
1 month
in %
3 months
in %
6 months
in %
1 year
in %
3 years
in %
5 years
in %
Lyxor MSCI World Financials TR UCITS ETF - Acc (USD)LU0533033071 -3.31% 1.10% 3.99% 29.20% 30.41% 48.06%
Xtrackers MSCI World Financials UCITS ETF 1CIE00BM67HL84 -3.31% 0.49% 3.89% 28.92% 29.74% 47.75%
SPDR MSCI World Financials UCITS ETFIE00BYTRR970 -3.34% 1.07% 3.88% 28.90% 29.96% 48.06%
Amundi ETF MSCI World Financials UCITS ETF USDLU1681045966 -3.33% 1.08% 3.93% 28.86% 29.86% 47.26%

Source: justETF.com; As of 30/11/2021