|Bid||41.65 x 1200|
|Ask||45.80 x 900|
|Day's Range||42.06 - 43.44|
|52 Week Range||26.38 - 87.80|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||4.24|
|Expense Ratio (net)||1.00%|
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).
The Zacks Analyst Blog Highlights: Direxion Daily S&P, Direxion Daily Regional Banks, Direxion Daily Aerospace, Direxion Daily Industrials and Direxion Daily Small Cap
Last year, the Federal Reserve raised interest rates four times, but the S&P Regional Banks Select Industry Index (SPSIRBKT), a widely followed gauge of regional bank stocks, plunged 19 percent. In 2018, regional banks ran counter to a historically positive correlation to rising interest rates and Treasury yields as some investors fretted that the positive impact from rising rates was dwindling for bank stocks. “US banks should begin to see less and less benefit to earnings from rising short-term interest rates over the coming quarters,” Fitch Ratings says.
We have highlighted nine ETFs that have piled up exceptional returns to start 2019 and will continue to be investors' darlings provided the sentiments remain the same.
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.
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 ...
Even with the benefit of three interest rate increases by the Federal Reserve, regional bank stocks and exchange traded funds are struggling this year. The iShares U.S. Regional Banks ETF (NYSEArca: IAT), ...
Even with the benefit of three interest rate hikes by the Federal Reserve, moves expected to benefit banking stocks, regional bank equities and the related exchange traded funds are languishing this year. ...
Yesterday, the Federal Reserve confirmed the general consensus by the capital markets that interest rates were likely to rise as Fed Chairman Jerome Powell capped off a two-day monetary policy meeting with the announcement that the federal funds rate would increase by 25 basis points to 2.25. This didn't sit well for banks worried that the increased rates would pare down their lending businesses as the Direxion Daily Regional Bnks Bull 3X ETF (DPST) lost 5.76% to end yesterday's market session. "Banking stocks closed lower on Wednesday after the Federal Reserve raised interest rates a quarter of a point, or 25 basis points, to 2%–2.25%," noted Market Realist's Andrew Brunton in an article.
Large banks with more than $1 trillion in total assets like JP Morgan Chase and Bank of America may typically have their names in lights when looking at the financial sector specifically, but it's been the regional banks that have been the unsung heroes. With this in mind, traders looking to capitalize on this strength in the regional banking sector can look to the Direxion Daily Regional Bnks Bull 3X ETF (DPST) . The disparity between the performance of the overall financial sector versus regional banks can be seen in a comparison of charts for the Financial Select Sector SPDR ETF (XLF) and the SPDR S&P Regional Banking ETF (KRE) .