The Financials sector ranks fourth out of the 11 sectors as detailed in our 4Q23 Sector Ratings for ETFs and Mutual Funds report. Last quarter, the Financials sector ranked fourth. It gets our Neutral rating, which is based on an aggregation of ratings of the 460 stocks in the Financials sector as of October 11, 2023. See a recap of our 3Q23 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 24 to 412). This variation creates drastically different investment implications and, therefore, ratings.