Financial

Despite an upbeat earnings season and low exposure to the current round of economic risks, U.S. bank stocks and sector-related exchange traded funds have underperformed, potentially opening up a buying opportunity for value investors. Year-to-date, the SPDR S&P Regional Banking ETF (NYSEArca: KRE) fell 12.6%, iShares U.S. Regional Banks ETF (NYSEArca: IAT) dropped 10.9% and […]

The equities market and stock exchange traded funds retreated in a violent start to a new year. As volatility dissipates, exchange traded fund investors should consider areas where selling may have been overdone. “In our opinion, much of the recent selling has been overdone and, as such, has created some bargains,” Russ Koesterich, Global Chief […]

As the equities market experienced its worst start to a new year, exchange traded fund investors fled growth sectors and jumped into defensive stocks, along with betting on a valuation play. Investors’ eyes are on the tech space this week amid a spate of fourth quarter earnings results, but the technology sector was among the […]

The recent selling has put the markets on edge. Nevertheless, investors can still find ways to navigate the markets. ETF Trends publisher Tom Lydon appeared on CNBC to discuss opportunities in the financial sector and hedging against volatility with long-term Treasuries. Click on the video below to see the full interview. The opinions and forecasts […]

As the markets digest fourth quarter earnings results, U.S. markets are expected to fall further into an earnings recession, with S&P 500 companies likely to show decline in profits for the third consecutive quarter. Nevertheless, there some sectors and related exchange traded funds that may pull through. Profits are expected to decline by 7.2% in […]

Many expected this to be the year that active mutual fund managers would be able to pick and choose their battles and generate alpha for investors. However, active managers continued to underperform benchmarks, bolstering the case for low-cost, passive index-based exchange traded funds. According to Goldman Sachs analysis, only 27% of large-cap core funds beat […]

With the Federal Reserve beginning interest rate normalization, major banks are already jumping on the opportunity to increase prime rates, bolstering their profit margins and potentially supporting financial sector exchange traded funds. On Wednesday, banks including Wells Fargo & Co. (NYSE: WFC), JPMorgan Chase & Co (NYSE: JPM) and Bank of American Corp. (NYSE: BAC) […]

With the Federal Reserve itching to begin interest rate normalization, equity investors can also try to capitalize on a rising rate environment through financial sector-related exchange traded funds. The futures market is pricing in a 81% chance the Federal Open Market Committee will announce a rate hike after its December 16 meeting, reports Jeff Cox […]

Investors interested in positioning their portfolios ahead of changes to major market trends may target specific market segments with sector-specific exchange traded funds. For instance, on the recent webcast, How Well Do Your Know Your Sectors?, David Mazza, V.P. and Head of Research at State Street Global Advisor, pointed out that the utilities sector was […]

All sectors are not created equal. Investors who seek to adapt their investment portfolio to prevailing market trends may target specific areas of market through sector-related exchange traded funds. On the upcoming webcast, How Well Do Your Know Your Sectors?, State Street Global Advisor’s David Mazza, V.P. and Head of Research, Research Strategist Jared Rowley […]

As analysts grow more pessimistic about third quarter earnings results, banks could surprise the markets this week and potentially lift financial sector exchange traded funds. The five largest U.S. banks by market cap are due to report third quarter results this week, with JPMorgan (NYSE: JPM) set to kick things off Tuesday, followed by Goldman […]

State Street Global Advisors has expanded its line of sector exchange traded funds to include two new funds that track financial services and real estate investment trusts, along with cutting the fees on the whole Select Sector SPDR suite. The Financial services Select Sector SPDR Fund (NYSEArca: XLFS) and the Real Estate Select Sector SPDR […]

John Hancock is joining the quickly growing field of smart-beta, index-based exchange traded funds as the money manager launches six multi-factor ETF strategies. According to a press release, John Hancock debuted with six offerings, including: John Hancock Multifactor Large Cap ETF (NYSEArca: JHML), which has a 0.35% expense ratio. John Hancock Multifactor Mid Cap ETF […]

Ahead of the third quarters earnings season, some investors are hedging bets on financial sector stocks and exchange traded funds, hinting at potential weakness in the area as banks underperformed through the near-zero interest rate environment. For instance, one large trader placed a bearish bet against the Financial Select Sector SPDR (NYSEArca: XLF) on Thursday, […]

The recent plunge in oil prices and subsequent underperformance of the energy sector has been dragging on the S&P 500 Index. This last quarter’s revenue growth was -3.4%. If you excluded the energy sector, the revenue growth increased to 1.5%. What If You Could Buy The S&P 500 Without Energy Stocks? Enter the new ProShares […]

After a sudden market correction, investors my want to single out some sector-specific exchange traded funds to ride a potential rebound. According to Barclays, historical trends suggests that the equity market recovery has more room to run, reports Jamie Chisholm for the Financial Times. Barclays’ equity strategy team found that since 1940 there have been […]

The financial sector and related exchange traded funds are among the cheapest areas of the U.S. markets, with some major banks trading under their stated book value per share. After most of the financial industry revealed quarterly earnings, seven big banks are still trading below their book value, reports Jon C. Ogg for 24/7 Wall […]

I do the “ETF of the Week” for MarketWatch every week on Chuck Jaffe’s MoneyLife Show where I highlight big movers and disappointments among exchange traded funds. On Thursday, I looked at the SPDR S&P Insurance ETF (NYSEArca: KIE). This area of the financial sector could capitalize off a rising interest rate environment. Click here to […]

Banks and financial sector exchange traded funds may have one hand tied behind their back as the Federal Reserve finalizes additional capital requirements on Wall Street. The Fed has placed a higher capital requirement for the eight largest banks, including a 4.5% capital “surcharge” for J.P. Morgan Chase (NYSE: JPM); 3.5% for Citigroup (NYSE: C); […]

As we adjust portfolios in anticipation of higher interest rates ahead, investors may consider including exchange traded funds that track insurance companies. For instance, investors can use the SPDR S&P Insurance ETF (NYSEArca: KIE), iShares US Insurance ETF (NYSEArca: IAK), PowerShares KBW Property & Casualty Insurance Portfolio (NYSEArca: KBWP) and PowerShares KBW Insurance Portfolio (NYSEArca: […]

Earnings season is kicking off, and financial sector exchange traded funds are in the limelight this week as major banks reveal second quarter results. On Tuesday, JPMorgan (NYSE: JPM) and Wells Fargo (NYSE: WFC) will report earnings, according to CNBC. On Wednesday, Bank of America (NYSE: BAC) will reveal results. On Thursday, Citigroup (NYSE: C) […]

With U.S. equities market moseying along, investors may find greater opportunities targeting specific areas in the market, such as the financial sector and related exchange traded funds. According to a recent research note, BlackRock is overweight financials for the second half of the year. “Strong mergers and acquisitions activity, a busy underwriting calendar and increased […]

The U.S. economy is looking better than previously expected, and investors who are looking to increase their exposure to the domestic market should target financial and healthcare sectors, along with related exchange traded funds. “You can have kind of a slow recovery, a slow retrenchment from the Fed, slow reflation and that could be a […]

I do the “ETF of the Week” for MarketWatch every week on Chuck Jaffe’s MoneyLife Show where I highlight big movers and disappointments among exchange traded funds. On Thursday, I focused on the SPDR S&P Bank ETF (NYSEArca: KBE). Banks could profit from higher interest rates ahead. Click here to listen to the podcast. To […]

With Chinese mainland A-shares surging this year, investors seeking exposure to the emerging market may be better off with China H-shares and related country-specific exchange traded funds. “The H-share index is much more attractive versus the A-shares at the moment, and we’re positioned that way,” Helen Zhu, head of China equities at BlackRock , told […]

The equities market is headed into its worst month of the year, and exchange traded fund investors should take particular care with financial sector stocks. According to MKM Partners market technician Jonathan Krinsky, over the past decade, June has been the worst month of the year for stocks, with the S&P 500 averaging a 1.32% […]

The equities market and stock exchange traded funds ended up paring their best monthly rally since February over the last days of May. Over May, the Dow Jones Industrial Average rose 0.8%, the Nasdaq Composite increased 2.1% and the S&P 500 gained 1.0%. The best performing non-leveraged exchange traded products over the past month include […]

Bank stocks and sector-related exchange traded funds have been pulling ahead in the financial space, but investors should not get overzealous with their bets. Year-to-date, the SPDR S&P Regional Banking ETF (NYSEArca: KRE) rose 4.8%, iShares U.S. Regional Banks ETF (NYSEArca: IAT) gained 3.6%, PowerShares KBW Regional Bank Portfolio (NYSEArca: KBWR) increased 4.6%, SPDR S&P […]

A rising interest rate environment will throw a wrench into the financial markets. Nevertheless, bank-related exchange traded funds could weather the storm as financial firms have positioned ahead of the potential rate changes. With a Federal Reserve rate hike expected as soon as the September meeting, Credit Suisse analysts favor JPMorgan Chase (NYSE: JPM), Bank […]