|Bid||0.000 x 3000|
|Ask||0.000 x 800|
|Day's Range||55.56 - 56.31|
|52 Week Range||43.95 - 66.04|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.28|
|Expense Ratio (net)||0.35%|
The SPDR S&P Regional Banking ETF (NYSEArca: KRE), the largest regional bank exchange traded fund, and rival regional bank ETFs were among last year’s most disappointing assets. The group plunged even ...
The biggest bank deal in a decades has put the spotlight on ETFs that could be the best ways for investors to tap the opportunity arising from BB&T and SunTrust merger.
Regional bank stocks and sector-specific ETFs shook off the broader market weakness after BB&T (BBT) made a deal to buyout SunTrust Banks Inc. (STI) , combining the banks to form the sixth-largest U.S. retail bank. BB&T and SunTrust struck an all-stock deal in what amounts to the largest U.S. bank merger since the financial crisis, with a combined company value of $66 billion, the Wall Street Journal reports. The deal marks the first deal brokered for big U.S. banks after a tough regulatory environment following the financial crisis kept banks sitting out of the recent slew of mergers and acquisitions.
Chemical Financial Corp. and TCF Financial Corp. announced Monday an all-stock "merger of equals," in which TCF will merge into Chemical to create a Midwest bank with a combined $45 billion in assets. Under terms of the deal, TCF shareholders will receive 0.5081 Chemical shares for each TCF share they own. Based on Friday's stock closing prices, the deal values TCF shares at $21.58 each, which matches Friday's closing price. TCF had a market capitalization of $3.60 billion on Friday, and Chemical's market cap was $3.03 billion. Once the deal closes, which is expected in the late third quarter or early fourth quarter of 2019, TCF shareholders will own 54% of the combined company. The companies expect to generate about $180 million in annual cost synergies by 2020, with minimal reductions in branches. Shares of TCF have gained 4.3% over the past three months, while Chemical's stock has slipped 3.0%, the SPDR S&P Regional Banking ETF has tacked on 3.0% and the S&P 500 has edged up 0.2%.
The financial sector and bank ETFs may continue to gain momentum as the better-than-expected fourth quarter results and improving outlook help lift sentiment on this cheap segment of the market. Goldman ...
Bank stocks have struggled recently, and large regional banks haven’t been spared. But there is a silver lining: attractive dividend yields and improving payouts.
The number of investors that like bank stocks and the related exchange traded funds rapidly dwindling as the financial services sector ranks as one of this year's worst-performing groups in the S&P 500. “Outflows from the $21 billion Financial Select SPDR Fund, or XLF, are driving the record $9.2 billion that’s been pulled from all ETFs tracking financials this year,” reports Bloomberg. “Traders have also been closing out their bets in the $2.7 billion SPDR S&P Regional Banking ETF, which tracks an equal-weighted portfolio of banks stocks.
When it comes to sector exchange traded funds investors are displaying intense dissatisfaction with in 2018, financial services funds are at the top of the list. The 2018 performances of XLF and rival financial services ETFs are undoubtedly disappointing for investors that bet the sector would rally against the backdrop of rising interest rates. The Federal Reserve has boosted borrowing costs three times, moves many market observers believed would lift the fortunes of the rate-sensitive financial sector.
As was widely expected, the Federal Reserve recently raised interest rates for the fourth time in 2018. What was a surprise to some market observers was the Fed’s hawkish tone, which indicates multiple rate hikes could be in the offing in 2019. Rising interest rates are not always a negative thing, however, particularly if economic growth and inflation are supportive of those higher borrowing costs.
Banks are performing decently at present. But concerns related to global economic slowdown and diminishing chances of future rates will likely hamper growth.
Stock markets experienced a sharp fall on Dec 4 due to uncertainties surrounding trade talks and flattening of the yield curve, putting utility ETFs in focus.
The SPDR S&P Regional Banking ETF (KRE) , the largest regional bank exchange traded fund, just cannot seem to get out of its own way and some investors are not sticking around to see what comes next. Rising interest rates historically benefit regional banks, but that has not been the case this year. 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.
Inversion of yield curve, trade war worries and economic slowdown concerns result in the decline in banks stocks, providing an entry point for investors.
Leveraged exchange traded funds (ETFs) have some nifty tickers . In the case of one leveraged fund, aggressive traders may want to consider doing the opposite of what the ticker implies. With investors ...
CenterState Bank Corp. announced Monday a deal to buy National Commerce Corp. in a deal valued at about $850 million. Under terms of the deal, CenterState Bank will exchange 1.65 of its shares for each National Commerce share outstanding. Based on Friday's closing prices, that values National Commerce shares at about $40.01 each, a 5.1% premium. CenterState expects the deal, which is expected to close in the second quarter of 2019, to increase earnings per share in the mid-single-digit range. The Southeastern regional banks have a combined total assets of $16.4 billion and a market capitalization of $3.2 billion. The shares of both banks were still inactive in premarket trade. Over the past three months, CenterState shares have tumbled 21%, National Commerce's stock has shed 16%, the SPDR S&P Regional Banking ETF has dropped 15% and the S&P 500 has lost 8.4%.
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.