Should You Invest in the iShares MSCI Europe Financials ETF (EUFN)?

If you’re interested in broad exposure to the Financials – Broad segment of the equity market, look no further than the iShares MSCI Europe Financials ETF (EUFN), a passively managed exchange traded fund launched on 01/20/2010.

An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.

Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Financials – Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 7, placing it in top 44%.

The fund is sponsored by Blackrock. It has amassed assets over $4.07 billion, making it one of the largest ETFs attempting to match the performance of the Financials – Broad segment of the equity market. EUFN seeks to match the performance of the MSCI Europe Financials Index before fees and expenses.

The MSCI Europe Financials Index is a free float-adjusted market capitalization weighted index designed to measure the combined equity market performance of the financials sector of developed market countries in Europe.

Investors should also pay attention to an ETF’s expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.

Annual operating expenses for this ETF are 0.48%, making it on par with most peer products in the space.

It has a 12-month trailing dividend yield of 3.95%.

It is important to delve into an ETF’s holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

Looking at individual holdings, Hsbc Holdings Plc (HSBA) accounts for about 7.44% of total assets, followed by Allianz (ALV) and Banco Santander Sa (SAN).

The top 10 holdings account for about 40.36% of total assets under management.

So far this year, EUFN has added about 43%, and it’s up approximately 48.81% in the last one year (as of 07/10/2025). During this past 52-week period, the fund has traded between $21.54 and $32.51.

The ETF has a beta of 0.94 and standard deviation of 20.25% for the trailing three-year period, making it a medium risk choice in the space. With about 96 holdings, it effectively diversifies company-specific risk.