An exchange traded fund that invests in broker stocks could see elevated trading volume among specialized financial ETFs on Monday after Goldman Sachs analysts shuffled their ratings on E-Trade (NasdaqGS: ETFC) and TD Ameritrade (NasdaqGS: AMTD).
Goldman upgraded E-Trade to buy from neutral and set a $19 price target on the stock. The analysts like E-Trade’s “lower exposure to transaction-based revenue, muted impact from the declining recent trend in interest rates, improving credit, and its year-to-date underperformance,” according to a report from StreetInsider.com.
Also, they cut TD Ameritrade to neutral as Goldman sees the firm more vulnerable to falling trading volumes.
E-Trade and TD Ameritrade each represent about 4% of iShares Dow Jones U.S. Broker-Dealers Index Fund (NYSEArca: IAI).
iShares Dow Jones U.S. Broker-Dealers Index Fund
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