|Bid||56.27 x 800|
|Ask||56.85 x 900|
|Day's Range||56.60 - 56.95|
|52 Week Range||50.62 - 58.09|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||0.28%|
|Beta (5Y Monthly)||0.93|
|Expense Ratio (net)||0.29%|
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.
Total S&P 600 earnings for Q3 are expected to be down 19.5% from the same period last year on 3.6% higher revenues. However, these sectors outperformed.
Albeit the Q2 earnings season reflects a bumpy ride for small-cap stocks, a few sectors offer better growth rates, putting the related ETFs under the spotlight.
Earnings of the S&P 600 are down 18.3% year over year so far on 3.1% revenue growth, with 57.1% beating EPS estimates and 56.3% surpassing top-line expectations.
Amid another flareup in the ongoing U.S./China trade dispute, market uncertainty is creeping higher. Earlier this week, the CBOE VIX Volatility Index, a widely followed gauge of investor uncertainty, spiked higher, prompting some analysts to speculate about a technical breakout.While market turbulence and uncertainty may reside on the higher end of the spectrum over the near-term, taking advantage of that theme via volatility-related exchange-traded funds (ETFs) is not something every investor indulges in. Volatility-related products are not safe ETFs. Rather, those products are intended for aggressive, sophisticated traders. * 10 Great Stocks to Buy on Dips Investors do not need to fret. There are plenty of funds that qualify as safe ETFs that help investors stay engage with equities while the U.S. and China workout their trade differences. Here are some ETFs to consider that could prove useful (and durable) over the near-term.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Invesco S&P 500 High Dividend Low Volatility ETF (SPHD)Expense Ratio: 0.30% per year, or $30 annually per $10,000 investedFor investors looking for a safe ETF that also includes a steady income stream, the Invesco S&P 500 High Dividend Low Volatility ETF (NYSEARCA:SPHD) is an idea to consider. The $3.21 billion SPHD currently yields 4%, or more than double the dividend yield on the S&P 500. SPHD's 50 holdings are the S&P 500 members with the highest dividend yields and the lowest trailing 12-month volatility, making the fund suitable for investors looking to skirt market turbulence.Because SPHD identifies stocks by dividend and volatility traits, this safe ETF's sector bets are not surprising. Currently, the Invesco fund devotes almost 38% of its combined weight to the real estate and utility sectors, groups known for above-average yields and below-average volatility.While SPHD is lagging the S&P 500 this year, the fund has held up somewhat better than the broader market since trade tensions sparked increased volatility last week. SPHD resides about 3.70% below its all-time high. For investors looking to make a long-term bet on a safe ETF, SPHD also makes sense because the fund pays a monthly dividend. iShares Edge MSCI Min Vol USA ETF (USMV)Expense Ratio: 0.15%As the largest low volatility ETF, the iShares Edge MSCI Min Vol USA ETF (CBOE:USMV) is bound to draw increased attention when headline risk rises and that has been the case in recent days as USMV is one of the top asset gatherers among U.S.-listed ETFs since the end of April.Minimum volatility "strategies aim to create a holistic portfolio with lower risk than the market," according to BlackRock. "The factor has historically delivered lower downside capture, but lower upside potential as well, making it more appropriate for investors seeking to reduce risk while still maintaining potential for returns similar to the broader market." * 10 Lithium Stocks to Buy Despite the Market's Irrationality USMV is a safe ETF, relatively speaking, but that does not make it a risk-free bet. Only about 44% of the ETF's sector allocations can be considered defensive and many of the fund's marquee holdings are large-cap multi-nationals that could be pinched by an ongoing trade spat with China, related tariffs or a subsequent rally by the U.S. dollar. iShares Core S&P Small-Cap ETF (IJR)Expense Ratio: 0.07%Small-cap stocks are usually more volatile than larger companies, so the current market environment may not appear conducive to embracing small-cap equities and ETFs such as the iShares Core S&P Small-Cap ETF (NYSEARCA:IJR). Upon further examination, IJR may indeed qualify as a safe ETF at the moment.Small caps typically generate the bulk of their revenue within the U.S., insulating them from trade wars. That is one advantage. Another advantage is that by virtue of that domestic focus, small caps are not pinched by a stronger U.S. dollar as are large-cap, multi-national companies. Amid geopolitical risk, global investors often bid the safe-haven dollar higher. That is often a drag on riskier assets, but a scenario small caps often meet with aplomb.At the sector level, IJR, which tracks the S&P SmallCap 600 Index, cements its domestic focus by allocating approximately half its weight to industrial, financial services and consumer discretionary names. In small-cap territory, those sectors are usually focused on the U.S. economy and do not have export-driven business models. Invesco S&P SmallCap Financials ETF (PSCF)Expense Ratio: 0.29%A small-cap sector fund rarely screams "safe ETF," but considering the lack of international exposure of small-caps and the same being true of the financial services sector, the Invesco S&P SmallCap Financials ETF (NASDAQ:PSCF) could prove to be a safe ETF.Consider this: over the past week, PSCF is down 0.40% while the large-cap S&P 500 is lower by 1.47% over the same period. Additionally, more than 37% of PSCF's 135 holdings are classified as value stocks, more than triple the number of names in the fund that are classified as growth stocks. As a result, PSCF trades at compelling multiples relative to broader small-cap benchmarks, such as the S&P SmallCap 600 and the Russell 2000. * 7 Cloud Stocks to Buy on Overcast Days Over the near-term, PSCF could prove to be a tactical, safe ETF play for slightly aggressive investors. PSCF has recently seen modest outflows, but that situation could rapidly reverse if the fund continues proving sturdy against large-cap plays. ProShares S&P 500 Dividend Aristocrats ETF (NOBL)Expense Ratio: 0.35%The ProShares S&P 500 Dividend Aristocrats ETF (CBOE:NOBL) is the second dividend fund on this list of safe ETFs and this dividend growth play merits plenty of consideration in this conversation. Recent and long-running history confirm that NOBL and its underlying index, the S&P 500 Dividend Aristocrats Index, are usually less volatile than broader equity indexes.Confirming NOBL's status as a safe ETF, the fund has a penchant for performing less poorly than the S&P 500 when the broader market slumps. NOBL did just that last year and its underlying index has even notched a few positive annual performances in years in which the S&P 500 finished lower.NOBL has a dividend yield that is nearly 30 basis points higher than the S&P 500's plus a quality tilt by virtue of its dividend growth emphasis make this a premier safe ETF idea for the current market environment.Todd Shriber owns shares of SPHD. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dangerous Dividend Stocks to Stay Far Away From * 7 Tips for New Investors Young and Old * 10 Great Stocks to Buy on Dips Compare Brokers The post 5 Safe ETFs to Ride Out Market Uncertainty appeared first on InvestorPlace.
After being an epic disappointment in 2018, the financial services sector and the related exchange-traded funds (ETFs) are rebounding in 2019. The Financial Select Sector SPDR (NYSEARCA:XLF), the largest financial ETF, is up an admirable 12.8% year-to-date, thought that trails the S&P 500 by 70 basis points.While several sectors are outperforming financials this year, there are some financial ETFs offering impressive returns, making them solid alternatives to traditional funds like XLF. And there are other catalysts that could further benefit financial ETFs -- including expectations that short-term interest rates will decline and the sector's status as a value play."Trading at an eye-popping 55% discount relative to the broader market based on price-to-earnings multiples, it potentially offers compelling value to investors willing to accept the risk of investing in the sector," according to State Street. "According to FactSet, fourth quarter earnings per share (EPS) growth for financials will be more than 10%, roughly in line with the market EPS growth rate."InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Small-Cap Stocks That Make the Grade For investors looking to get involved with the third-largest sector in the S&P 500, here are some financial ETFs to consider. Financial ETFs: SPDR S&P Bank ETF (KBE)Expense Ratio: 0.35% per year, or $35 on a $10,000 investment.The SPDR S&P Bank ETF (NYSEARCA:KBE) is one of the best financial ETFs for investors looking to focus on bank stocks. A year-to-date gain of 19% proves as much. KBE follows the S&P Banks Select Industry Index and holds 85 stocks, which are equally weighted in the fund.This financial ETF "seeks to provide 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.While this financial ETF is not a dedicated regional bank fund, it is close, since regional bank equities represent nearly 80% of the KBE's weight. Regional banks were major disappointments last year as the group, usually known for being positively correlated to rising interest rates, slumped as rates rose. Yield curve normalization and increased industry consolidation are among the factors that could boost regional banks this year. Invesco S&P SmallCap Financials ETF (PSCF)Source: Shutterstock Expense Ratio: 0.29%Recently, there have been some signs of weakness in small caps, prompting investors to stick with large-cap stocks and ETFs. However, the Invesco S&P SmallCap Financials ETF (NASDAQ:PSCF) has held up relatively well and is sporting a year-to-date gain of 11.3%.PSCF, the small-cap answer to the aforementioned XLF, holds 138 stocks with an average market value of $1.75 billion, putting this financial ETF at the higher end of small-cap territory. Banks and real estate investment trusts (REITs) represent nearly two-thirds of this financial ETF's roster. * 15 Stocks That May Be Hurt by This Year's Big IPOs PSCF reflects the value proposition offered by the financial services sector, as over 39% of the fund's holdings are classified as value stocks compared with just 12.5% designated as growth stocks. Fidelity MSCI Financials Index ETF (FNCL)Source: Shutterstock Expense Ratio: 0.084%For cost-conscious investors looking for good deals, the Fidelity MSCI Financials Index ETF (NYSEARCA:FNCL) is the way to go. A traditional financial ETF that is similar to the aforementioned XLF, FNCL is the least-expensive financial ETF on the market today. Fidelity clients can trade FNCL commission-free, adding to the fund's cost efficiencies.With FNCL, investors are making bets on the largest domestic money center banks, investment banks and insurance companies. FNCL's top 10 holdings combine for over 43% of the fund's weight.Remember this: Warren Buffett's Berkshire Hathaway Inc. (NYSE:BRK-B), itself one of the largest holdings in FNCL, recent boosted its stakes in a slew of large U.S. banks, including several that are among the top holdings in this Fidelity financial ETF. Invesco KBW High Dividend Yield Financial ETF (KBWD)Source: Shutterstock Expense Ratio: 2.42%Investors looking for a high-yield financial ETF may want to consider the Invesco KBW High Dividend Yield Financial ETF (NASDAQ:KBWD). Yes, this fund fits the bill as high-yield as highlighted by a 12-month distribution rate of 8.1%, but the rub is KBWD's whopper of an expense ratio of 2.42%.KBWD is not a traditional financial ETF in that it is not a large-cap fund, nor is it heavily allocated to shares of standard banking stocks. Rather, this financials fund's high yield is derived via significant exposure to mortgage REITs, some asset managers and some insurance companies. * 7 Winning High-Yield Dividend Stocks With Payouts Over 5% With a price-to-earnings ratio of just under 9, KBWD is a value play and essentially all of its 40 holdings are classified as mid- and small-cap value stocks. Oppenheimer Financials Sector Revenue ETF (RWW)Expense Ratio: 0.45%Most financial ETFs are cap-weighted funds, but the Oppenheimer Financials Sector Revenue ETF (NYSEARCA:RWW) takes a different approach to financials by weighting its holdings by revenue. "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.Due to the revenue weighting methodology in this financial ETF, Buffett's Berkshire Hathaway is 15.1% of RWW's weight while no other stock accounts for over 7.8% of the fund's roster. RWW is up around 13% this year. ProShares Global Listed Private Equity ETF (PEX)Expense Ratio: 2.78%For investors willing to deal with the high fee, the ProShares Global Listed Private Equity ETF (CBOE:PEX) is an interesting avenue for exposure to the universe of listed private equity companies. This financial ETF tracks the LPX Direct Listed Private Equity Index and has a 12-month dividend yield of nearly 4.2%.Listed private equity (LPE) employs a business model that is similar to the traditional private equity model, but rather than relying on institutions and wealthy individual investors, LPE taps public markets for capital, providing investors with accessibility and daily liquidity via a publicly traded instrument. Translation: LPE companies are public companies investing in portfolios of private firms. * 15 Stocks Sitting on Huge Piles of Cash There are some issues to consider with PEX, including that high fee. While investing in private equity companies may sound compelling to everyday investors, particularly because private equity investments are off limits to all but institutional and ultra-high-net-worth investors, PEX has to outperform traditional financial ETFs by wide margins to justify its high fee … and that is not happening this year. Invesco S&P 500 Equal Weight Financials ETF (RYF)Source: Shutterstock Expense Ratio: 0.4%There are different ways to skin the financials ETF cat, and that includes an equal-weight idea via the Invesco S&P 500 Equal Weight Financials ETF (NYSEARCA:RYF). Home to 68 stocks, this financial ETF is a solid idea for investors looking to avoid large weights to the biggest U.S. banks and Berkshire Hathaway.Even with RYF being an equal-weight fund, a strategy that often tilts toward small-cap stocks, this fund's holdings have an average market value north of $45 billion. None of RYF's holdings are classified as small caps, but that is not diminishing the fund's performance this year as this financial ETF is up 15.4%. That indicates equal weighting works at the sector level.Many equal-weight ETFs have a value tilt, and with this being a financial ETF, RYF does have significant value exposure. Value stocks represent nearly 60% of the fund's weight.As of this writing, Todd Shriber owned shares of XLF. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 5 of the Best Stocks to Buy Under $10 * 7 Single-Digit P/E Stocks With Massive Upside * 7 Best Quantum Computing Stocks Trading Today Compare Brokers The post 7 Financial ETFs to Buy appeared first on InvestorPlace.
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 ...