|Bid||0.00 x 1400|
|Ask||0.00 x 900|
|Day's Range||65.43 - 66.03|
|52 Week Range||51.96 - 67.46|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||0.85|
|Expense Ratio (net)||0.43%|
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.
A broker dealers-related ETF strengthened Wednesday after Goldman Sachs Group (GS) revealed a better-than-expected profit gain under David Solomon's first quarter of leadership as higher equities trading revenue and a surge in merger and acquisition activity offset a dip in bond trading. Goldman Sachs saw a 56% jump in M&A fees, along with higher trading activity on its equity desk over a volatile quarter, despite the dip in bond trading, Reuters reports. “It was a really treacherous quarter, and they navigated it fairly well,” Charles Lemonides of ValueWork LLC told the Wall Street Journal.
Earnings beat prospect in Q4 for banks may be bleak, but a steepening yield curve and cheaper valuation could boost bank ETFs in the near term.
The Investment Banking segment is likely to continue driving Goldman Sachs’s (GS) overall third-quarter revenue growth. The segment consists of the financial advisory business, which includes mergers and acquisitions, fundraising, corporate defense, and underwriting. Goldman Sachs has witnessed remarkable growth in its Investment Banking segment’s revenues in the last few quarters mainly driven by increased M&A (mergers and acquisitions) activities, the underwriting of public offerings, and placements.
Citing anonymous sources, Bloomberg reported last week that Morgan Stanley (MS) is following in the footsteps of its peers and plans to offer bitcoin swap trading to its clients. The digital currency trading business plan is in a nascent stage and still awaits some internal approvals. The company’s move is said to be mainly driven by its clients’ strong demand for cryptocurrency derivatives.