ETF Spotlight: iShares Dow Jones U.S. Regional Banks

Jan.28.10 | About: iShares U.S. (IAT)

ETF Spotlight on iShares Dow Jones U.S. Regional Banks (NYSEArca: IAT), part of a weekly series.

Assets: $119 million

Objective: Tracks the Dow Jones U.S. Select Regional Banks Index

Holdings: BB&T (NYSE: BBT); Fifth Third Bancorp (NASDAQ: FITB); Suntrust Banks (NYSE: STI) and U.S. Bancorp (NYSE: USB) are among the major holdings.

What You Should Know

  • Regional banks are typically mid-sized banks that are larger than community banks, but smaller than large financial institutions
  • Regional banks share some characteristics, including that such banks have a presence in a given geographic region and they don’t typically have any international locations
  • The expense ratio of this fund is 0.48%
  • The fund has 67 components

The Latest News

  • President Barack Obama’s proposal to limit the size of the nation’s largest banks could ultimately be a boon to regional banks
  • These smaller banks won’t face the regulations and restrictions the big banks might, giving them more appeal than ever
  • Two regional banks that that stuck to their traditional business throughout the financial crisis turned in healthy results for the last quarter of a tumultuous year in the banking industry
  • Many regional banks also don’t have much presence in the world of risky lending and operating hedge funds, says Paul R. La Monica at CNN Money
  • Regional banks still have their problems, however; there are still bad loans in the commercial real estate market to contend with, and a high unemployment rate could trigger more delinquencies