|Bid||0.00 x 1000|
|Ask||0.00 x 1100|
|Day's Range||70.83 - 71.01|
|52 Week Range||61.65 - 75.44|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||1.39%|
|Beta (5Y Monthly)||1.21|
|Expense Ratio (net)||0.45%|
Cheaper valuation, better earnings growth prospects, solid performance in Stress Test, dividend hike announcements and less chances of a rate cut should position financial ETFs in a good spot in 2H.
ATLANTA , May 28, 2019 /PRNewswire/ -- Invesco Ltd. (NYSE: IVZ) announced today the reorganization of the OppenheimerFunds ETFs into Invesco ETFs. The funds were reorganized as part of the successful ...
April has drawn to a close and on the back of some solid first-quarter earnings reports, the financial services sector, the S&P 500's third-largest sector weight, delivered impressive gains in the fourth month of the year. The Financial Select Sector SPDR (NYSEARCA:XLF), the largest financial services exchange-traded fund (ETF) by assets, gained more than 9% in April.The financial services sector is considered a value play, not a growth segment, such as consumer discretionary or technology, but financials are a cyclical group and strength in this segment is widely viewed as advantageous for broader equity markets."A strong U.S. economy is naturally good for business: Most of the banks saw bigger-than-expected gains in consumer lending, deposits, and credit card spending," reports Barron's.InvestorPlace - Stock Market News, Stock Advice & Trading TipsData suggest investors are renewing their enthusiasm for financial services funds. While bank funds were among April's best ETFs, some were also the most popular ETFs to start the second quarter. As of April 29, XLF had monthly inflows of $1.39 billion, a total surpassed by just five other ETFs. * 10 Times Apple's Hardware Failed Consumers -- And Hurt Its Business For investors looking to make some bank with bank funds, these are some of the best ETFs to consider. SPDR S&P Bank ETF (KBE)Expense Ratio: 0.35%, or $35 annually per $10,000 investedThe financial services sector includes more than just banks, but for investors looking to focus on traditional banks, the SPDR S&P Bank ETF (NYSEARCA:KBE) is one of the best ETFs to consider.Home to 88 stocks, KBE provides "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.KBE, which added $84.22 million in April (as of April 29), equally weights its components, a strategy that can lower single-stock risk. Familiar names among the fund's top 10 holdings include Citigroup (NYSE:C) and JPMorgan Chase (NYSE:JPM). Both of those banks delivered first-quarter results that beat Wall Street estimates.Citigroup has been buying back its shares at a brisk pace and looking to cut costs -- two strategies that boosted the bank's first-quarter results. Global X MSCI China Financials ETF (CHIX) Expense Ratio: 0.65%Obviously, the Global X MSCI China Financials ETF (NYSEARCA:CHIX) is a play on Chinese banks, making it one of the best ETFs for investors looking to add some international diversification to U.S.-heavy financial services positions. CHIX is also one of this year's best ETFs in the financial services space with a year-to-date gain of just over 20%.China is the world's second-largest economy and stocks there are among this year's emerging markets leaders, explaining why CHIX is one of the best ETFs in the financial services segment. Bank stocks are integral parts of many traditional China funds, indicating that CHIX is a, somewhat overlooked, tell on what to expect from China ETFs over the near- to medium-term.Amid soaring first-quarter loan activity, China's major banks recently reported solid earnings. * 10 A-Rated Stocks the Smart Money Is Piling Into On April 29, "Industrial & Commercial Bank of China Ltd., Bank of China Ltd., China Construction Bank Corp. and Bank of Communications Co. posted higher net income. Including Agricultural Bank of China Ltd., which reported last week, rises at the big five clustered in a range from 4.1 percent to 4.9 percent," reports Bloomberg. iShares U.S. Regional Banks ETF (IAT)Expense Ratio: 0.43%Last year, regional bank stocks and funds sorely disappointed investors as the Federal Reserve boosted interest rates four times. As highlighted by the iShares U.S. Regional Banks ETF (NYSEARCA:IAT), which is up about 20% this year, the regional bank picture is brightening in 2019.The more sanguine interest rate outlook coupled with speculation of increased consolidation is among the factors making regional bank ETFs, such as IAT, some of this year's best ETFs. Currently, BB&T Corp. (NYSE:BBT) and SunTrust (NYSE:STI), IAT's third- and fourth-largest holdings, respectively, are discussing a merger, stoking speculation more regional bank consolidation is on the way.Regional banks are heavily dependent on strength in the broader U.S. economy. Robust economic activity combined with steady or declining interest rates, which can boost demand for mortgage loans, are among the factors investors need to consider with a fund such as IAT. Oppenheimer S&P Financials Revenue ETF (RWW)Expense Ratio: 0.45%Many traditional financial services ETFs, such as the aforementioned XLK, are cap-weighted and there are a few, such as KBE, that are equally weighted. The Oppenheimer S&P Financials Revenue ETF (NYSEARCA:RWW) is one of the best ETFs for investors looking for a different view on the financial services sector. Specifically, this ETF weights its components by revenue.Home to 69 stocks, RWW tracks the S&P 500 Financials Sector Revenue-Weighted Index. This year, it has been hard to argue with RWW's revenue-weighted methodology. The fund is one of the best ETFs in this category with a year-to-date gain of 18.44%."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. * 7 Cheap ETFs for Novice Investors Due to the revenue weighting, RWW allocates more than 15% of its weight to one stock: Berkshire Hathaway (NYSE:BRK.B). iShares MSCI Europe Financials ETF (EUFN)Expense Ratio: 0.48%The iShares MSCI Europe Financials ETF (NASDAQ:EUFN) is one of the best ETFs for risk-tolerant investors seeking international financial services exposure. EUFN has been one of the best ETFs for tactical exposure to Europe this year, but it is also one of the most volatile Europe funds. EUFN has a three-year standard deviation of almost 18%, well above the comparable metric on standard developed markets funds.Investors in EUFN are compensated for the fund's volatility and other risks with a trailing 12-month dividend yield of just over 6%, but European bank earnings have not been nearly as good as what has been seen in the U.S. and China and some banks in Europe are not as financially sturdy as their U.S. counterparts."Unfortunately, many of European banks' woes are of their own making," reports Forbes. "A host of regulatory and legal fines and ongoing money laundering investigations of several banks do not bode well for European earnings."Bottom line: EUFN is not for the faint of heart, but it may be one of the best ETFs for bank investors with a big flair for risk.Todd Shriber owns shares of XLF. More From InvestorPlace * 7 A-Rated Stocks That Are Under $10 * 7 Stocks That Are Soaring This Earnings Season * 5 Biotech Stocks for a Long-Lived Portfolio * 10 Times Apple's Hardware Failed Consumers -- And Hurt Its Business Compare Brokers The post 5 Best ETFs to Make Some Bank on Financial Stocks 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.