The Financials sector ranks fourth out of the 11 sectors as detailed in our 2Q25 Sector Ratings for ETFs and Mutual Funds report. Last quarter, the Financials sector ranked third. It gets our Neutral rating, which is based on an aggregation of ratings of the 499 stocks in the Financials sector as of April 11, 2025. See a recap of our 1Q25 Sector Ratings here.
Figures 1 and 2 show the five best and worst rated ETFs and mutual funds in the sector. Not all Financials sector ETFs and mutual funds are created the same. The number of holdings varies widely (from 20 to 409). This variation creates drastically different investment implications and, therefore, ratings.