The iShares U.S. Regional Banks ETF (IAT Quick QuoteIAT - Free Report) was launched on May 1, 2006, and is a passively managed exchange traded fund designed to offer broad exposure to the Financials - Regional Banks segment of the equity market.

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.

Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Financials - Regional Banks is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 5, placing it in top 31%.

Index Details

The fund is sponsored by Blackrock. It has amassed assets over $624.65 million, making it one of the larger ETFs attempting to match the performance of the Financials - Regional Banks segment of the equity market. IAT seeks to match the performance of the Dow Jones U.S. Select Regional Banks Index before fees and expenses.

The Dow Jones U.S. Select Regional Banks Index is a free-float adjusted market capitalization-weighted index which measures the performance of the regional bank sub-sector of the U.S. equity market.

Costs

Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.

Annual operating expenses for this ETF are 0.38%, making it on par with most peer products in the space.

It has a 12-month trailing dividend yield of 3.36%.

Sector Exposure and Top Holdings

ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.

This ETF has heaviest allocation in the Financials sector -- about 100% of the portfolio.

Looking at individual holdings, Pnc Financial Services Group Inc (PNC) accounts for about 14.57% of total assets, followed by Us Bancorp (USB) and Truist Financial Corp (TFC).

The top 10 holdings account for about 69.44% of total assets under management.

Performance and Risk

Year-to-date, the iShares U.S. Regional Banks ETF has gained about 9.19% so far, and is up roughly 33.06% over the last 12 months (as of 06/16/2026). IAT has traded between $45.81 and $62.82 in this past 52-week period.

The ETF has a beta of 0.89 and standard deviation of 25.86% for the trailing three-year period, making it a high risk choice in the space. With about 35 holdings, it has more concentrated exposure than peers.

Alternatives

iShares U.S. Regional Banks ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, IAT is a sufficient option for those seeking exposure to the Financials ETFs area of the market. Investors might also want to consider some other ETF options in the space.

Invesco Bloomberg Financial Data Providers ETF (FDIQ) tracks BLOOMBERG FINANCIAL DATA PROVIDERS INDEX and the State Street SPDR S&P Regional Banking ETF (KRE) tracks S&P Regional Banks Select Industry Index. Invesco Bloomberg Financial Data Providers ETF has $49.95 million in assets, State Street SPDR S&P Regional Banking ETF has $4.18 billion. FDIQ has an expense ratio of 0.35%, and KRE charges 0.35%.

Bottom Line

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