50.56 0.00 (0.00%)
After hours: 5:41PM EST
|Bid||50.12 x 1800|
|Ask||50.51 x 1400|
|Day's Range||49.64 - 50.62|
|52 Week Range||43.95 - 66.04|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.32|
|Expense Ratio (net)||0.35%|
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.
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.