|Bid||0.00 x 1000|
|Ask||0.00 x 1000|
|Day's Range||54.47 - 55.22|
|52 Week Range||50.69 - 66.04|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.15|
|Expense Ratio (net)||0.35%|
Take bank stocks for instance. With higher interest rate concerns now coming home to roost in the banking sector, the time to short bank stocks is now. Traders have been selling rallies with prejudice in Goldman Sachs (NYSE:GS) since the stock topped in March.
In what can be seen as glum news for a group of exchange traded funds struggling even as interest rates, some analysts and market observers believe the impact of higher interest rates on banks’ net interest ...
The the financial sector helped pare some of the losses U.S. stocks Monday, with the Financial Select Sector SPDR (NYSEArca: XLF) up 0.7%. For example, the Invesco S&P SmallCap Financials Portfolio (PSCF) gained 2.1%, SPDR S&P Regional Banking ETF (KRE) increased 1.9%, First Trust NASDAQ ABA Community Bank Index Fund (QABA) rose 1.8% and iShares U.S. Regional Banks ETF (IAT) advanced 1.8%, compared to the 1.2% decline in the S&P 500. The strength in financials could be a sign of so-called value stocks gaining more favor after outperforming or at least holding up better than growth stocks in the recent market pullback.
Only the most defensive sectors escaped Wall Street's severe rout, which thumped chip stocks and most other equity ETFs Wednesday.
Investors should focus on some strategies as to which sector should they take positions or which should be avoided if bipartisan government forms.
Regional banks, an industry group usually believed to be positively correlated to rising Treasury yields, are getting smacked even as the Federal Reserve boosts borrowing costs. The Fed has hiked interest rates three times this year with market observers widely expecting another increase of 25 basis points in December. KRE currently resides 19.59 percent below its 52-week high and 14.43 percent below its 200-day moving average, both of which can be seen as bearish signals.
Major banking funds have broken key support levels and dropped to 2018 lows, overwhelmed by eight Federal Reserve rate hikes and the most recent market swoon. Commercial and regional banks have lost ground at an equal pace in recent weeks, highlighting the broad nature of selling pressure that accelerated at the end of September. Meanwhile, Bank of America Corporation ( BAC) is struggling to hold the mid-summer low at $27.74, while Citigroup Inc. ( C) ended a refreshing period of leadership behavior at the start of 2018 and is now trading nearly 14% below the January high.
While investors are in a panic about rising yields on U.S. Treasury notes, there’s actually one group that benefits from this trend: regional banks. Banks got hurt as analysts jumped on the “inverted yield curve” meme. The yield curve — a plot of short-term Treasury yields against long-term yields — was nearly flat at the time.
Bank stocks and sector-related bank ETFs plunged on Friday, despite strong third quarter profit results. Meanwhile, the broader Financial Select Sector SPDR (NYSEArca: XLF) fell 0.9%. J.P. Morgan Chase (JPM) , Citigroup (NYSE: C) , Wells Fargo (WFC) and PNC Financial Services (PNC) all revealed strong quarterly results on Friday, but the markets did not appear impressed.
Wall Street banks are expected to report on a big three-month run, but a profitable quarter may not be enough for bank ETFs. Year-to-date, the iShares U.S. Regional Banks ETF (NYSEArca: IAT) gained 2.2%, ...
Based on analytics tool Kensho, we have highlighted a few ETFs that have outshined and lagged when the 10-year Treasury note yield rose 25 basis points or more over a span of 30 days.
Last month, the Federal Reserve raised interest rates for a third time this year, possibly setting the stage for a fourth rate hike in December. As is often the case, some exchange traded funds react better to Fed tightening than others. On a historical basis, top-performing ETFs in the month after a Fed hike include some oil funds and a major regional bank ETF.
Rising borrowing costs are not necessarily a cause for concern as rising interest rates typically go hand in hand with a growing economy, and financial stocks and sector-related exchange traded funds may do especially well in this type of environment. "When yields experience large changes in short periods of time, stocks can struggle to digest the moves," Bernstein's Noah Weisberger said in a note, according to CNBC. "So long as signs continue to point to a growth-driven move in yields, we think that over the medium term, stocks will fare well," Weisberger added.
Historically, regional banks are positively correlated to rising Treasury, indicating exchange traded funds, such as the S PDR S&P Regional Banking ETF (KRE) , should be thriving in the current environment. More importantly, the fund has been drubbed over the past month, a period that includes the Federal Reserve's third interest rate hike of 2018. Higher interest rates would help widen the difference between what banks charge on loans and pay on deposits, which would boost earnings for the financial sector.
Amid growing volatility across the global financial markets, active traders have been busy looking for relatively safe places to put their money. The behemoth companies within the financial sector such as The Goldman Sachs Group, Inc. ( GS) and JPMorgan Chase & Co. ( JPM) tend to dominate the headlines. For example, the recent news that Goldman Sachs is reportedly backing away from its places to open a bitcoin trading desk essentially eliminated the probability that the smaller regional banks received any mainstream attention.
A top-down approach first looks at the direction of the broader stock market, then digs into the bullish or bearish trends in the different sectors and industries until finally arriving at single-name stocks worth buying/selling according to those trends. While trading single-name stocks certainly makes sense much of the time, over the years I have found great success making bets and playing trends and breakouts on sectors and industries using ETFs such as the KRE ETF.
Second-quarter earnings arrived for big banks in earnest last Friday amid a spate of reports from the financial services sector. Exchange traded funds tracking financial services stocks were tested last ...
Key index funds were mixed Friday as the Dow industrials led but the tech-heavy Nasdaq composite lagged. Bank ETFs were lower.