Goldman Ratings on E-Trade, TD Ameritrade to Move Broker ETFs

May 9th at 8:20am by John Spence

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


The opinions and forecasts expressed herein are solely those of John Spence, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

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