 The
iShares U.S. Regional Banks ETF (IAT) is an exchange-traded fund that
seeks to track the investment results of the Dow Jones U.S. Select
Regional Banks Index. The index is composed of small and mid-cap U.S.
regional bank stocks.
The fund offers investors exposure to
regional banks, which are financial institutions that operate in
specific regions of the country, serving the needs of local
communities and businesses. These banks are often less diversified
than larger national banks and may be more sensitive to local economic
conditions.
As of September 2021, the net asset value of IAT
was approximately $1.2 billion, with a 0.42% expense ratio. The fund
holds positions in over 50 regional bank stocks, with its largest
holdings in PNC Financial Services Group Inc, KeyCorp, and Huntington
Bancshares Incorporated.
Investors who are interested in IAT
should consider the potential benefits of exposure to regional banks,
which may provide a source of growth and income. However, they should
also be aware of the risks associated with investing in this sector,
which include interest rate risk, credit risk, and regulatory risk.
Overall, IAT may be an attractive option for investors who are
seeking exposure to the regional banking sector. However, as with any
investment, it is important to conduct your own research and consider
your investment goals and risk tolerance before investing in the fund.
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