|Bid||34.27 x 4000|
|Ask||34.28 x 800|
|Day's Range||32.97 - 34.41|
|52 Week Range||27.26 - 59.38|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||-44.33%|
|Beta (5Y Monthly)||1.68|
|Expense Ratio (net)||0.35%|
ETF.com Managing Editor Cinthia Murphy joins Yahoo Finance's Seana Smith to break down the ETFs she's watch in Q2 amid market turmoil over the coronavirus.
Peter Winter, Wedbush Securities Managing Director, joins Yahoo Finance’s Alexis Christoforous and Brian Sozzi to discuss how the banks are faring during the market volatility and what decisions they should make going forward during this Pandemic.
In an emergency move, one that some argued was a sign of panic, the Federal Reserve on Tuesday slashed interest rates by 50 basis points. The central bank meets later this month and there is plenty of chatter another rate cut could be revealed then as an avenue for propping up markets and the economy if the coronavirus situation doesn't improve.Interest rate cuts are often viewed in a positive light, though the initial reaction to this one was downbeat as investors ponder the fate of a Fed running low on ammunition going forward.Of course, interest rate reductions also have a way of crimping some sectors, so even if the market rebounds, investors may want to steer clear of the following exchange traded funds.iShares U.S. Insurance ETF (IAK) One day doesn't mean in the broader scheme of things, but the iShares U.S. Insurance ETF (NYSE: IAK) is trailing the broader market Wednesday by a wide margin as stocks rebound. The reason for that scenario is straight forward: life and property and casualty insurers, such as the ones residing in IAK, are rate-sensitive in both directions, meaning higher rates usually benefit the industry.Insurers typically hold large amounts of cash, so as rates decline, the amount of interest generated by that cash does as well. Bottom line: insurance companies' performance is often linear with interest rates, meaning IAK and rival ETFs are probably a pass for some time.See Also: Desperate Measures? Here's What Experts Think About The Fed's Interest Rate CutSPDR S&P Regional Banking ETF (KRE) Like the aforementioned IAK, the SPDR S&P Regional Banking ETF (NYSE: KRE) is rebounding today, but it's well behind the broader market. Broadly speaking, regional banks are vulnerable to interest rate reductions because lower rates pinch net interest margins.From bank to bank, how sensitive each name is to lower interest rates is largely dependent on the composition of commercial loan portfolios, so with some due diligence, investors may be able to find some undervalued winners in the regional banking space today.The issue is regional banks are universally viewed as ideas to eschew when rates are cut, a sentiment that will likely pressure products such as KRE over the near term.Invesco S&P SmallCap Financials ETF (PSCF) Small-cap stocks can offer some benefits when interest rates rise because that scenario can be seen as a vote of confidence in the economy. Conversely, lower rates are also beneficial to smaller firms because of the possibility of lower financing costs.However, the Invesco S&P SmallCap Financials ETF (NASDAQ: PSCF) won't be benefiting from either scenario anytime soon because rate hikes are clearly off the table.In fact, small-cap banks are even more vulnerable to lower rates because they lack the scale and diversified business models of their large-cap peers.See more from Benzinga * This Bank ETF Could Benefit From More M&A Activity(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
The recent market sell-off could be presenting traders with a chance to buy into certain market segments such as U.S. regional banks.
With mergers and acquisition activity picking up, regional banks and financial sector ETFs that track smaller firms could benefit from the increased consolidation. There were 35 deals in the regional banking space last year, the highest number since 1999, and with the 2020 presidential election looming, buyers may be in a hurry to lock in deals in the first half of the year before a potentially new president comes to office, MarketWatch reports. “Bankers might have a short window to get those deals done,” S&P Global Market Intelligence said in a note.
The SPDR S&P Regional Banking ETF (KRE) , the largest ETF dedicated to regional bank equities, gained 27.4% last year. While that lagged broader benchmarks, the performance was still impressive when considering the Federal Reserve cut interest rates three times. Rising interest rates historically benefit regional banks.
While inorganic growth efforts, decent loan demand and technology upgrades will support bank stocks in 2020, lower interest rates pose a major headwind.
Long-term buy signals suggest that the regional banking sector could be the group to watch in the closing weeks of 2019 and into 2020.
The SPDR S&P Regional Banking ETF (NYSEArca: KRE), the largest ETF dedicated to regional bank equities, is up just 7.25% this year, about half the gains posted by diversified financial services ETFs. KRE ...
The Federal Reserve could make major changes to bank rules and alleviate some of the pressure on the financial sector and related ETFs. The Fed said it would vote October 10 on a measure to ease liquidity ...
Fear of global economic slowdown, trade war worries, lower rates and flattening of yield curve are likely to adversely impact banking sector earnings in the near term.
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, ...
Traders are always on the lookout for the next short squeeze candidate. Short squeezes can send share prices skyrocketing in a matter of minutes and hours, and traders who are along for the ride can make ...