|Bid||67.56 x 800|
|Ask||68.58 x 800|
|Day's Range||67.93 - 68.18|
|52 Week Range||51.96 - 68.91|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||22.88%|
|Beta (3Y Monthly)||0.83|
|Expense Ratio (net)||0.42%|
The market has been volatile in the last few months as the Federal Reserve finalized its rate cuts and uncertainty looms over trade negotiations with China. Small cap stocks have been hit hard as a result, as the Russell 2000 ETF (IWM) has underperformed the larger S&P 500 ETF (SPY) by more than 10 percentage […]
A merger between Charles Schwab and TD Ameritrade Holding Corp. could just be the start of a wave of consolidation in the discount-brokerage arena, market experts told MarketWatch.
The brokerage industry was abuzz Thursday morning on news that Charles Schwab (SCHW) is acquiring rival TD Ameritrade (AMTD) for $26 billion, headlines that sent the iShares US Broker-Dealers & Securities Exchanges ETF (IAI) slightly higher. IAI includes exposure to investment banks, brokerages and stock exchanges that may have more to gain from trading activities. Some industry observers speculated that consolidation would be the order of the day after Schwab last month eliminated commissions on all equity and ETFs trades, prompting rivals, such as TD Ameritrade to follow suit.
An exchange-traded fund that tracks investment service providers was nearly 1% higher on Thursday morning after reports that Charles Schwab Corp. is in talks to acquire TD Ameritrade Holding Corp. That potential deal, first announced by CNBC, sent both company stocks flying Thursday morning and helped boost the fund, the iShares U.S. Broker-Dealers & Securities Exchanges ETF . Shares of rival E-Trade Financial Corp., also a holding in the ETF, slid more than 6% in morning trading, and several of its other holdings, which include trading platforms like CBOE Global Markets Inc. and Nasdaq Inc., were also lower. In the year to date, the ETF has returned 21%, just lagging the S&P 500 .
Wall Street suffered its worst daily drop since late August and was off to the worst start to a quarter in about a decade with two consecutive days of decline.
Cheaper valuation, better earnings growth prospects, solid performance in Stress Test, dividend hike announcements and less chances of a rate cut should position financial ETFs in a good spot in 2H.
A slight flattening of the yield curve may hurt bank stocks' profitability, but underwriting of several unicorn IPOs should help these financial ETFs.