ARKF Dividend vs. XLF Dividend: To Pay or Be Paid

For the XLF’s current dividend yield click here.

  • The chart below shows the total yield of the ARK Financials ETF (ARKF), the Financial SPDR ETF (XLF) and the top 10 ranked financial stocks in KCR’s model
  • The ARKF ETF specializes in “Fintech” and suffers from 2% equity dilution – existing shareholders are paying -2% to subsidize the holdings of ARKF
  • In contrast, the XLF ETF and our top 10 ranked financials offer investors high levels of income
  • The stocks in ARKF’s portfolio are eroding their investors’ ownership percentage
  • The owners of old-fashioned financials are getting paid to own them

We don’t think this is complicated. Do you want to pay to own expensive stocks or get paid to own cheap ones? In our just released White Paper we explained the case for old-fashioned financials.

Old Fashioned Financials Pay You to Own Them

In an income starved world we understand the appeal of XLF’s dividend yield. With that said we believe there may be better financial companies to invest in than just a value-weighted ETF. In the exhibit below we show some basic fundamentals of:

  • KCR’s 10 top financial stocks from our S&P 500 rankings tool
  • The XLF ETF’s holdings
  • The ARKF holdings as of the most recent filing available to us

Fundamentals KCR Top 10 Financials vs XLF vs ARKF

To repeat ourselves: we don’t think this is complicated. For investors looking for stocks to buy for the long-haul, we would suggest the best financial stocks are not to be found in the brave new world of expensive “FinTech.”