|Bid||0.00 x 900|
|Ask||0.00 x 1800|
|Day's Range||38.60 - 43.29|
|52 Week Range||17.81 - 83.63|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||120.28%|
|Beta (5Y Monthly)||-4.49|
|Expense Ratio (net)||1.09%|
Recent and near unprecedented volatility across global markets, driven by the impact of the COVID-19 pandemic and oil price war, has dramatically increased the explicit and implicit cost of trading in the energy and commodities markets. While volatility will subside at some point, the ability to cost-effectively and efficiently access these markets may remain challenged for some time.
After scaling new highs to start the year on the initial U.S.-China trade deal, Wall Street is badly shaken by the fast-spreading coronavirus that has led to fears of a worldwide pandemic.
Wall Street has been witnessing a tough ride this month due to U.S.-China trade conflicts, weak global economic data, low inflation and political unrest in Hong Kong.
Given the massive outflow and the bearish outlook, the appeal for financial ETFs, especially banks, has dulled. As a result, investors who are bearish on the sector right now may want to consider a near-term short.
Slack net interest margin guidance could be a sign that banks are baking in an imminent interest rate cut by the Federal Reserve. Regional banks are particularly sensitive to net interest margin weakness, perhaps explaining why the SPDR S&P Regional Banking ETF (NYSE: KRE), the largest exchange traded fund tracking the industry, is lower by 1% this week. Additionally, some traders see a technical case for shorting the bellwether regional bank ETF.
We have highlighted five leveraged inverse ETFs that gained more than 40% in May though these involve a great deal of risk when compared to traditional products.
As measured by the S&P Regional Banks Select Industry Index (SPSIRBKT), regional banks were one of last year's most disappointing groups, but are shedding some of those laggard ways this year. The S&P Regional Banks Select Industry Index is up more than 13 percent year-to-date. A reversal of fortune for regional banks in 2019 is lifting ETFs tracking the group, including the Direxion Daily Regional Banks Bull 3X Shares (NYSE: DPST).