Financial Sector And ETFs Going Down The Drain
November 25th at 1:00pm by Tom Lydon
Recent losses taken by mortgage investors Fannie Mae (FNM) and Freddie Mac (FRE) added to a collective drop for thrift and mortgage finance stocks and related exchange traded funds (ETFs). Freddie posted a $2 billion loss and may cut dividends to meet capital requirements. MENAFN reports the increased net loss was primarily due to higher credit-related expenses and mark-to-market losses on derivatives and credit-related items.
Some financial related ETFs that hold mortgage finance stocks include:
- Financial Select Sector SPDR (XLF) – down 19% for the year
- Vanguard Financials (VFH) - down 17.8%
- KRW Bank Index (KBE) – down 18.9%
- ProShares UltraShort Financials (SKF) – this ETF seeks the inverse of the financial index
