|Bid||44.22 x 1200|
|Ask||44.44 x 1200|
|Day's Range||0.00 - 0.00|
|52 Week Range|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.41|
|Expense Ratio (net)||0.35%|
Though the latest steepening of the yield curve benefited bank ETFs on Sep 9, chances of volatility in the longer-term period may keep gains in bank ETFs at check.
Bank sector-related ETFs found strength Monday as government bonds pulled back and yields climbed on easing investor fears surrounding a U.S.-China trade war that has shown signs of de-escalation. On Monday, ...
Bank stocks took a broad beating Tuesday, as the tumble in 10-year Treasury yields to a fresh three-year low following disappointing manufacturing data cast a pall on the financial sector. The SPDR S&P Bank ETF slid 2.1% with 87 of 90 equity components losing ground, while the SPDR S&P Regional Bank ETF shed 2.3% with all 122 components falling. Meanwhile, the SPDR Financial Select Sector ETF dropped 1.3% with 58 of 68 components declining, but 7 of the gainers were insurance companies, 2 were trading platforms and 1 was a credit rating agency. Of the more-active banks, shares of Bank of America Corp. dropped 2.6%, Citigroup Inc. gave up 2.0%, Wells Fargo & Co. lost 1.3%, J.P Morgan Chase & Co. declined 1.5%, Huntington Bancshares Inc. fell 2.9% and Regions Financial Corp. dropped 2.7%. The 10-year Treasury yield declined 6.7 basis points to 1.439%, the lowest yield seen since July 2016. Lower longer-term yields can pressure bank profits, as it narrows the spread banks earn by usual practice of funding longer-term assets, such as loans, with shorter-term liabilities. The bank ETF (KBE) has now shed 18.9% over the past 12 months, while the 10-year yield has been cut in half and the Dow Jones Industrial Average has edged up 0.5%.
The selloff in financial stocks isn't unanimous Tuesday, but it's pretty close, as the yield on 10-year Treasurys resumed their decline after a two-day bounce off last Thursday's 3-year low. The SPDR Financial Select Sector ETF shed 1.1%, with 64 of 68 equity components trading lower, and was the biggest decliner of the SPDR sector ETFs tracking the S&P 500's 11 sectors. Meanwhile, the SPDR S&P Bank ETF slumped 1.3% with 89 of 90 components losing ground and the SPDR S&P Regional Banking ETF slid 1.4% with 119 of 122 components declining. There is some overlap among the 3 ETFs' components. Among the more active stocks, Bank of America Corp. shed 1.9%, Citigroup Inc. fell 0.9%, Regions Financial Corp. lost 2.0% , Wells Fargo Co. gave up 1.0% and J.P. Morgan Chase & Co. slipped 1.0%. Meanwhile, the 10-year Treasury yield declined 4.2 basis points (0.042 percentage points) to 1.556%. Lower long-term yields can hurt bank profits, as it reduces the spread they earn from funding longer-term assets, like loans, with shorter-term liabilities.
The Financial Select Sector SPDR (NYSEArca: XLF), the largest financial services ETF, is lower by more than 5% this week. That’s ugly price action to be sure, but it may also belie significant opportunity ...
ETFs to gain from upbeat U.S. consumers' economic outlook on a decent job market, contained inflation, rising wages and prospects of low interest rates.
As big banks continue to report their second-quarter earnings this week, some are already expressing concern with respect to the possibility of rate cuts by the Federal Reserve through 2019. In particular, profits could shrink as a result of lower interest rates, which could put the Direxion Daily Financial Bear 3X ETF (FAZ) in play. FAZ seeks daily investment results that equate to 300% of the inverse (or opposite) of the daily performance of the Russell 1000® Financial Services Index.
Results from the Federal Reserve's Comprehensive Capital Analysis and Review (CCAR) will pave the way for major U.S. banks to deliver higher dividends to investors, meaning yields on the financial services sector are expected to climb. The Financial Select Sector SPDR (XLF) , the largest financial services ETF, recently yielded just over 2%.
U.S. commercial banks kick off second quarter earnings season next week, after a tough first half in which the majority of components ran in place while the S&P 500 lifted to another all-time high. Trade wars and the Fed are to blame for this losing streak, with the prospect of lower rates and an economic slowdown weighing on bank shares. Unfortunately for bulls, these headwinds are likely to continue in the third quarter, lowering the odds for sustainable upside. Trade wars have taken an equal toll, denying U.S. corporations international opportunities while putting a lid on the 10-year expansion.
State Street's (NYSE:STT) SPDR brand is one of the most recognizable brands in the ETF universe. With that superior brand recognition comes heft. As of June 26, SPDR is the third-largest U.S. ETF sponsor and has $642.6 billion in ETF assets under management. That is more than triple the amount of its next-largest peer.In terms of sheer population, there are hundreds of SPDR ETFs, but among the issuer's most well-known offerings are the SPDR S&P 500 ETF (NYSEARCA:SPY), the world's largest ETF; the SPDR Gold Shares (NYSEARCA:GLD), the world's largest gold-backed fund; and a the largest (by assets) lineup of sector ETFs, including the Financial Sector Spider ETF (NYSEARCA:XLF).SPDR ETFs span an array of asset classes, including stocks, bond, commodities and real estate, among others. Additionally, there are some inexpensive SPDR ETFs, meaning frugal investors can find plenty of funds to embrace in the SPDR lineup.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Stocks That Should Be Every Young Investor's First Choice You probably already know about the likes of GLD and SPY, so let's look at some other SPDR ETFs that may merit a place in your portfolio. SPDR S&P Dividend ETF (SDY)Source: Shutterstock Expense ratio: 0.35% per year, or $35 on a $10,000 investment.SPDR ETFs include several dividend funds and the SPDR S&P Dividend ETF(NYSEARCA:SDY) is one of the gems of the bunch. Home to $18.54 billion in assets under management, SDY is one of the largest dividend ETFs, but this SPDR ETF impresses on several other fronts, including its status as a clear quality play.SDY targets the S&P High Yield Dividend Aristocrats and while that index overtly says "high yield" in its name, this SPDR ETF is a credible dividend growth play because the index requires member firms to have dividend increase streaks of at least 20 years. That is one of the longest such requirements among all dividend funds."Due to the index screen for 20 years of consecutively raising dividends, stocks included in the Index have both capital growth and dividend income characteristics, as opposed to stocks that are pure yield," according to State Street.SDY holds 112 stocks and allocates over a third of its combined weight to the industrial and financial services sectors. SPDR S&P Bank ETF (KBE)Source: Shutterstock Expense ratio: 0.35%Speaking of the financial services sector, one of the best SPDR ETFs to consider over the near-term is the SPDR S&P Bank ETF (NYSEARCA:KBE). Unlike the aforementioned XLF, KBE is dedicated to bank stocks, meaning investors will not find diversified financial companies or property and casualty insurance providers in this SPDR ETF.KBE is up nearly 16% year-to-date, an impressive resurgence after bank stocks languished in 2018. More good news for this SPDR ETF and rival bank funds emerged on June 28 following the completion of the Federal Reserve's Comprehensive Capital Analysis and Review, or CCAR. * 3 Dow Jones Stocks to Buy for the Second Half To put things simply, the CCAR results pave the way for many of the largest U.S. banks, including plenty of KBE components, to significantly boost dividends and share repurchase efforts. KBE yields just 2.11% so there is plenty of room for dividend growth with this SPDR ETF. SPDR Gold MiniShares Trust (GLDM)Source: Shutterstock Expense ratio: 0.18%Gold has been a torrid pace, putting the spotlight on related ETFs, including the SPDR Gold MiniShares Trust (NYSEARCA:GLDM). A simple way of looking at this SPDR ETF is that it is the cost-effective counterpart to the aforementioned GLD."Shares of GLDM are designed for investors who want a cost-effective and convenient way to invest in gold and will be offered on a continuous basis," according to State Street.In late June, GLDM celebrated its first birthday and the SPDR ETF has more than $788 million in assets under management, indicating investors like a good deal with gold ETFs, too.With the Federal Reserve poised to lower interest rates and the dollar already weakening, this SPDR ETF could continue surging over the near term. SPDR Portfolio Emerging Markets ETF (SPEM)Source: Shutterstock Expense ratio: 0.11%With $2.74 billion in assets under management, the SPDR Portfolio Emerging Markets ETF (NYSEARCA:SPEM) is not a small SPDR ETF, but it is overlooked relative to some other emerging markets ETFs offered by rival issues. That said, SPEM has at least one thing going for it: currently, it is the cheapest emerging markets ETF available in the U.S.SPEM offers broad, cost-effective emerging markets exposure as it holds 1,542 stocks from nearly 30 countries. Investors should note South Korean stocks are not part of this SPDR ETF because SPEM tracks and S&P index and that index provider classifies South Korea as a developed market. China, Taiwan and India combine for about 59% of SPEM's geographic exposure. * 3 Energy Stocks to Trade Now With Confidence Due to the lack of South Korea exposure, investors should expect SPEM to generate significantly different returns over the long-term than the MSCI Emerging Markets Index. This SPDR ETF has adequate exposure to growth sectors with communication services and consumer discretionary names combining for about a quarter of the fund's roster. SPDR Bloomberg Barclays Convertible Securities ETF (CWB)Source: Shutterstock Expense ratio: 0.40%SPDR ETFs featured an extensive lineup of fixed funds, including some products with niche focuses. For its part, the SPDR Bloomberg Barclays Convertible Securities ETF (NYSEARCA:CWB) is the dominant name among convertible bond ETFs and index funds.In the fixed income space, convertibles are one of the segments with high correlations to equities because convertible bonds can be converted into common stock of the underlying issuer. With that in mind, it is not surprising to see CWB perform well when equities are doing the same.Though this point may be rendered moot over the near-term because the Fed could lower interest rates, long-term investors may want to consider CWB because convertible bonds often outperform other fixed income assets when interest rates rise. Due to its upside linkage to equities, that is CWB's primary form of investor compensation, meaning the fund is a lower yielder compared to traditional corporate bond ETFs. SPDR S&P Biotech ETF (XBI)Source: Shutterstock Expense ratio: 0.35%The SPDR S&P Biotech ETF (NYSEARCA:XBI) is one of the most popular biotech ETFs and sets itself apart in a crowded field by being an equal-weight, not a cap-weighted fund. This SPDR ETF's 119 holdings have a weighted average market value of $10.3 billion, indicating this is primarily a mid-cap fund.XBI's weighting methodology leads to vastly different returns relative to its cap-weighted rivals. While the tilt to smaller stocks makes this SPDR ETF more volatile than cap-weighted biotech funds, XBI has outperformed the Nasdaq Biotechnology Index by a margin of better than 2-to-1 over the past three years.This SPDR ETF is up nearly 20% year-to-date and some market observers see more upside coming for biotechnology stocks and ETFs. * 7 Stocks on Sale the Insiders Are Buying "In the last month this group has actually been the best-performing sector of any of the major groups," said Newton Advisors technical analyst Mark Newton in an interview with CNBC. "Just in the last couple of weeks, you've seen this entire downtrend since late last year be broken in health care relative to the S&P," he said of a trendline stretching from its peak in December to mid-May." SPDR S&P International Dividend ETF (DWX)Source: Shutterstock Expense ratio: 0.45%The SPDR S&P International Dividend ETF (NYSEARCA:DWX) is over 11 years old and has nearly $833 million in assets under management, so this SPDR ETF is neither new nor small, but it can be overlooked. Still, DWX is a practical option for investors looking for exposure to high dividend ex-US stocks.This SPDR ETF "seeks to provide exposure to the 100 highest yielding international common stocks that have passed certain sustainability and earnings growth screens," according to State Street.DWX is a focused fund with just 97 holdings, but its dividend yield of 4.03% is more than double that of the S&P 500. Up nearly 13% year-to-date, DWX is outperforming the MSCE EAFE Index by about 100 basis points.DWX provides exposure to 20 countries, three of which are developed markets, but Canada and Australia combine for almost 34% of the fund's weight.Todd Shriber owns shares of XLF. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks That Should Be Every Young Investor's First Choice * 5 IPO Stocks to Buy -- According to Wall Street Analysts * The Top 10 Best Sectors in the Market for 2019 The post 7 of the Best SPDR ETFs -- Besides SPY and GLD appeared first on InvestorPlace.
The results of the Federal Reserve’s Comprehensive Capital Analysis and Review, or CCAR, are in and the stage is now set for major U.S. banks to boost shareholder reward programs, including share buybacks ...
The Federal Reserve gave banks the green light to offer more payouts to investors after 18 of the largest financial firms passed the second round of stress tests designed to assess the health of the financial system. For financial sector bulls, this could boost the Direxion Daily Financial Bull 3X ETF (FAS) . FAS seeks daily investment results worth 300 percent of the daily performance of the Russell 1000 Financial Services Index.
Goldman Sachs Group (GS), Bank of America (BAC), and JPMorgan Chase (JPM) were up 2% to 3% in morning trading, after news Thursday that the lenders had passed the Comprehensive Capital Analysis and Review, or CCAR, the second of two stress tests administered annually by the Federal Reserve. “CCAR includes both a quantitative evaluation of a firm’s capital adequacy under stress and a qualitative assessment of its abilities to determine its capital needs,” according to Barron’s. “It takes into account the actual capital plans, including dividends and buybacks, that the individual firms are seeking. Jason Goldberg, senior equity analyst at Barclays said on CNBC, “If you look at the top 20 banks the medium bank is going to buy back over 8% of it shares over the next 12 months.
U.S. bank stocks and sector-related exchange traded funds were among the best performers Friday after the Federal Reserve announced the biggest U.S. banks were stable enough to start lower their capital ...
The results of the Federal Reserve’s Comprehensive Capital Analysis and Review, or CCAR, are expected to be released on June 27 and that could lead to significant improvements in shareholder rewards at some of the nation's largest banks. “The results of the stress tests, which examine the capital adequacy of each company, are mandated by the Dodd-Frank Act. Since the end of the global financial crisis, during which many stocks were egregious dividend offenders, the financial services sector has been a leader in terms of domestic dividend growth.
The results of the Federal Reserve’s Comprehensive Capital Analysis and Review, or CCAR, are soon to be released and that could mean higher dividends and increased share repurchases for a slew of domestic ...
All the major indexes are up on the anticipation that the Fed will decrease interest rates sooner than later with weak employment numbers being the catalyst.
Here is a look at the 25 best and 25 worst ETFs from the past week. Traders can use this list to find prospective candidates that have deviated too far from their longer-term trends, thereby serving as potential starting points for those looking to take on either short or long positions. Likewise, traders can also use this list to spot potential trend reversal opportunities that may offer a generous risk/reward. As always, investors of all experience levels are advised to use stop-loss orders and practice disciplined profit-taking techniques. To get access to all ETFdb.com premium content, sign up for a free 14-day trial to ETFdb.com Pro.
April has drawn to a close and on the back of some solid first-quarter earnings reports, the financial services sector, the S&P 500's third-largest sector weight, delivered impressive gains in the fourth month of the year. The Financial Select Sector SPDR (NYSEARCA:XLF), the largest financial services exchange-traded fund (ETF) by assets, gained more than 9% in April.The financial services sector is considered a value play, not a growth segment, such as consumer discretionary or technology, but financials are a cyclical group and strength in this segment is widely viewed as advantageous for broader equity markets."A strong U.S. economy is naturally good for business: Most of the banks saw bigger-than-expected gains in consumer lending, deposits, and credit card spending," reports Barron's.InvestorPlace - Stock Market News, Stock Advice & Trading TipsData suggest investors are renewing their enthusiasm for financial services funds. While bank funds were among April's best ETFs, some were also the most popular ETFs to start the second quarter. As of April 29, XLF had monthly inflows of $1.39 billion, a total surpassed by just five other ETFs. * 10 Times Apple's Hardware Failed Consumers -- And Hurt Its Business For investors looking to make some bank with bank funds, these are some of the best ETFs to consider. SPDR S&P Bank ETF (KBE)Expense Ratio: 0.35%, or $35 annually per $10,000 investedThe financial services sector includes more than just banks, but for investors looking to focus on traditional banks, the SPDR S&P Bank ETF (NYSEARCA:KBE) is one of the best ETFs to consider.Home to 88 stocks, KBE provides "exposure to the bank segment of the S&P TMI, which comprises the following sub-industries: asset management & custody banks, diversified banks, regional banks, other diversified financial services and thrifts & mortgage finance sub-industries," according to State Street.KBE, which added $84.22 million in April (as of April 29), equally weights its components, a strategy that can lower single-stock risk. Familiar names among the fund's top 10 holdings include Citigroup (NYSE:C) and JPMorgan Chase (NYSE:JPM). Both of those banks delivered first-quarter results that beat Wall Street estimates.Citigroup has been buying back its shares at a brisk pace and looking to cut costs -- two strategies that boosted the bank's first-quarter results. Global X MSCI China Financials ETF (CHIX) Expense Ratio: 0.65%Obviously, the Global X MSCI China Financials ETF (NYSEARCA:CHIX) is a play on Chinese banks, making it one of the best ETFs for investors looking to add some international diversification to U.S.-heavy financial services positions. CHIX is also one of this year's best ETFs in the financial services space with a year-to-date gain of just over 20%.China is the world's second-largest economy and stocks there are among this year's emerging markets leaders, explaining why CHIX is one of the best ETFs in the financial services segment. Bank stocks are integral parts of many traditional China funds, indicating that CHIX is a, somewhat overlooked, tell on what to expect from China ETFs over the near- to medium-term.Amid soaring first-quarter loan activity, China's major banks recently reported solid earnings. * 10 A-Rated Stocks the Smart Money Is Piling Into On April 29, "Industrial & Commercial Bank of China Ltd., Bank of China Ltd., China Construction Bank Corp. and Bank of Communications Co. posted higher net income. Including Agricultural Bank of China Ltd., which reported last week, rises at the big five clustered in a range from 4.1 percent to 4.9 percent," reports Bloomberg. iShares U.S. Regional Banks ETF (IAT)Expense Ratio: 0.43%Last year, regional bank stocks and funds sorely disappointed investors as the Federal Reserve boosted interest rates four times. As highlighted by the iShares U.S. Regional Banks ETF (NYSEARCA:IAT), which is up about 20% this year, the regional bank picture is brightening in 2019.The more sanguine interest rate outlook coupled with speculation of increased consolidation is among the factors making regional bank ETFs, such as IAT, some of this year's best ETFs. Currently, BB&T Corp. (NYSE:BBT) and SunTrust (NYSE:STI), IAT's third- and fourth-largest holdings, respectively, are discussing a merger, stoking speculation more regional bank consolidation is on the way.Regional banks are heavily dependent on strength in the broader U.S. economy. Robust economic activity combined with steady or declining interest rates, which can boost demand for mortgage loans, are among the factors investors need to consider with a fund such as IAT. Oppenheimer S&P Financials Revenue ETF (RWW)Expense Ratio: 0.45%Many traditional financial services ETFs, such as the aforementioned XLK, are cap-weighted and there are a few, such as KBE, that are equally weighted. The Oppenheimer S&P Financials Revenue ETF (NYSEARCA:RWW) is one of the best ETFs for investors looking for a different view on the financial services sector. Specifically, this ETF weights its components by revenue.Home to 69 stocks, RWW tracks the S&P 500 Financials Sector Revenue-Weighted Index. This year, it has been hard to argue with RWW's revenue-weighted methodology. The fund is one of the best ETFs in this category with a year-to-date gain of 18.44%."Revenue weighting offers diversified equity market exposure but, by weighting companies based on their revenue, rather than their stock price, it increases the strategy's exposure to attractively valued stocks compared to a market-cap-weighted index," according to Oppenheimer. * 7 Cheap ETFs for Novice Investors Due to the revenue weighting, RWW allocates more than 15% of its weight to one stock: Berkshire Hathaway (NYSE:BRK.B). iShares MSCI Europe Financials ETF (EUFN)Expense Ratio: 0.48%The iShares MSCI Europe Financials ETF (NASDAQ:EUFN) is one of the best ETFs for risk-tolerant investors seeking international financial services exposure. EUFN has been one of the best ETFs for tactical exposure to Europe this year, but it is also one of the most volatile Europe funds. EUFN has a three-year standard deviation of almost 18%, well above the comparable metric on standard developed markets funds.Investors in EUFN are compensated for the fund's volatility and other risks with a trailing 12-month dividend yield of just over 6%, but European bank earnings have not been nearly as good as what has been seen in the U.S. and China and some banks in Europe are not as financially sturdy as their U.S. counterparts."Unfortunately, many of European banks' woes are of their own making," reports Forbes. "A host of regulatory and legal fines and ongoing money laundering investigations of several banks do not bode well for European earnings."Bottom line: EUFN is not for the faint of heart, but it may be one of the best ETFs for bank investors with a big flair for risk.Todd Shriber owns shares of XLF. More From InvestorPlace * 7 A-Rated Stocks That Are Under $10 * 7 Stocks That Are Soaring This Earnings Season * 5 Biotech Stocks for a Long-Lived Portfolio * 10 Times Apple's Hardware Failed Consumers -- And Hurt Its Business Compare Brokers The post 5 Best ETFs to Make Some Bank on Financial Stocks appeared first on InvestorPlace.
The S&P 500 Financials Sector index is up over 17 percent year-to-date thanks to better-than-expected earnings in the first quarter from banks. “I would go back to XLF, and here’s why,” said Tim Seymour, founder and chief investment officer of Seymour Asset Management, during CNBC’s “Fast Money.” “You have the money center banks, which make up 35% of this ETF, and then you have Berkshire Hathaway, which, frankly, I think you could strip out of there.
The number of cash machines around the world fell 1% to 3.24 million last year, according to Banking Consultant RBR.Dan Howley, Melody Hahm and Dan Roberts join Seana Smith on ‘The Ticker’ to discuss why cash is on the decline.