The Financials sector ranks third out of the 11 sectors as detailed in our 1Q25 Sector Ratings for ETFs and Mutual Funds report. Last quarter, the Financials sector ranked third. It gets our Attractive rating, which is based on an aggregation of ratings of the 494 stocks in the Financials sector as of January 13, 2025. See a recap of our 4Q24 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 22 to 405). This variation creates drastically different investment implications and, therefore, ratings.