iShares U.S. Broker-Dealers ETF seen as a buy despite recent underperformance and market volatility.

The iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI) has underperformed in early 2026 due to high valuations and concerns over interest rate hikes. However, analyst Komal Sarwar maintains a Buy rating, citing strong fundamentals across investment banking, brokerages, exchanges, and data providers. Key holdings like ICE and MCO are trading below their 5-year average valuations, presenting an attractive entry point. Market volatility is expected to ease, potentially leading to a rebound in the ETF as sector fundamentals improve.