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First Trust has expanded its line of smart beta exchange traded funds with multi-factor sector plays based on attractive valuations, strong momentum and low volatility to help investors focus on portfolio risk management and improved diversification. First Trust has come out with seven new smart-beta sector ETFs, including: First Trust Nasdaq Bank ETF (NasdaqGM: FTXO) […]

After a multi-year rally, the equities market is trading at elevated valuations. Consequently, investors seeking exposure to stocks may want to consider a smart-beta, multi-factor exchange traded strategy to limit risks and potentially enhance returns. “High Valuations and limited multiple expansion may hinder broad market returns,” Steve Deroian, Head of ETF Strategy at John Hancock […]

Real estate investment trust exchange traded funds may continue to enjoy greater attention ahead as the REITs sector formally becomes the 11th major industry segment of the S&P Dow Jones Indices at the end of the week. REITs, which make up about 3% of the S&P 50o’s market valuation, will be splitting away from the […]

Global X Funds, an exchange traded fund provider known for its targeted or niche investment strategies, expanded on its tech sub-sector options with a Robotics & AI, FinTech and Internet of Things themes. On Tuesday, Global X launched the Global X FinTech Thematic ETF (NasdaqGM: FINX), Global X Robotics & Artificial Intelligence Thematic ETF (NasdaqGM: […]

The markets soured on speculation of a possible Federal Reserve interest rate hike as soon as this month. However, there are market segments and exchange traded funds that welcome higher rates. Speculation of an interest rate hike rose after the usually dovish Federal Reserve Bank of Boston Eric Rosengren said that a “reasonable case can […]

While the rest of the equities market plunged, bank stocks and sector-related exchange traded funds were partially supported by the notion that a Federal Reserve rate hike could help improve profit margins. On Friday, the iShares U.S. Regional Banks ETF (NYSEArca: IAT) was down 0.4%, SPDR S&P Regional Banking ETF (NYSEArca: KRE) was 0.5% lower, […]

Boutique exchange traded fund provider, PureFunds, launched a different kind of technology-related ETF, one based based on financial services and another on medical devices industries. On Wednesday, PureFunds rolled out the PureFunds Solactive FinTech ETF (NasdaqGM: FINQ) and the PureFunds ETFx HealthTech ETF (NasdaqGM: IMED). FINQ has a 0.68% expense ratio and IMED has a […]

After lagging for much of this year, financial services exchange traded funds, such as the Financial Select Sector SPDR (NYSEArca: XLF) and the Vanguard Financials ETF (NYSEArca: VFH), are trading near their highest levels of the year and the reasons extend beyond speculation that the Federal Reserve could raise interest rates. Looking at the fed-fund […]

Throughout this presidential election year, investors have heard plenty about which sectors could thrive and which ones could struggle depending upon which candidate wins the White House. Healthcare has gotten plenty of press as being potentially vulnerable in a scenario in a which Democratic nominee Hillary Clinton wins the presidency. Exchange traded funds such as […]

Financial stocks and sector-related exchange traded funds are finally having their moment in the limelight after Federal Reserve Chairwoman Janet Yellen hinted Friday of a greater chance for an interest rate hike. On Monday, the Financial Select Sector SPDR (NYSEArca: XLF) rose 1.1%, Vanguard Financials ETF (NYSEArca: VFH) gained 1.1% and PowerShares KBW Bank Portfolio […]

Small-cap and community bank exchange traded funds may find support from this election season as Democratic presidential nominee Hillary Clinton outlines a plan to cut down the red tape for smaller banks. Clinton plans to require regulators to issue “straightforward” statements explaining how small institutions are exempt from post-financial-crisis rules that were intended for big […]

The widely observed and go-to financial sector exchange traded fund, the Financial Select Sector SPDR (NYSEArca: XLF), is scheduled to make some big adjustments as the Global Industry Classification Standard pulls real estate investments trusts out of the broader financial sector to create a new real estate sector. According to State Street Global Investors, the […]

Financial services exchange traded funds, including the Financial Select Sector SPDR (NYSEArca: XLF) and the SPDR S&P Bank ETF (NYSEArca: KBE), have scuffled a bit this year as the Federal Reserve has held off on raising interest rates. While there are few signs that the Fed will reverse course before the end of the year, […]

Investors are probably tired of hearing about it at this point, but the financial services sector, the S&P 500’s second-largest sector weight, has been hamstrung this year by the Federal Reserve not raising interest rates. Last month, the Fed opted to leave interest rates on hold following the conclusion of its most recent meeting Wednesday, […]

Bank stocks and sector-related exchange traded funds led market gains Friday after the Labor Department reported robust job creation in July, adding to speculation that the Federal Reserve may have room to hike interest rates later this year. Among the top performing ETFs of Friday, the SPDR S&P Bank ETF (NYSEArca: KBE) rose 3.1%, SPDR […]

While the financial sector remains one of the worst performing areas of the market, exchange traded funds that track small banks have quietly outperformed their large-cap peers. Year-to-date, the First Trust NASDAQ ABA Community Bank Index Fund (NasdaqGM: QABA) rose 1.3%, PowerShares S&P SmallCap Financials Portfolio (NYSEArca: PSCF) gained 9.7% and PowerShares KBW Regional Bank […]

Things are looking up for banks and financial sector exchange traded funds as more traders begin to feel more optimistic about the outlook of the underperforming area. The financial sector remains the worst performing area of the S&P 500, with the Financial Select Sector SPDR (NYSEArca: XLF) up 0.1% year-to-date, compared to the broader S&P […]

Among the most sold off areas of markets in the aftermath of a post-Brexit world, European bank stocks and related exchange traded funds have made a strong rebound off the lows as traders anticipate further monetary easing to support the economy. The iShares MSCI Europe Financials ETF (NYSEArca: EUFN) gained 2.4% Thursday after rising 7.2% […]

Financial stocks and sector-related exchange traded funds rallied Thursday and pushed the broader S&P 500 and Dow Jones Industrial Average to new highs as J.P. Morgan’s (NYSE: JPM) earnings beat helped set the pace for second quarter expectations. JPM shares rose 1.8% Thursday after revealing a much better-than-expected increase in second quarter revenue. Excluding accounting […]

After a seven year bull run and an increased uncertainty, people may expect the equities market will more likely pullback and give up some of its gains. Consequently, traders have turned to bearish or inverse exchange traded fund strategies to hedge against turns in a more volatile market. On an upcoming webcast this Wednesday, Sector Strategies […]

Financial stocks and sector-related exchange traded funds were among the worst performing areas of the U.S. markets as investors continued to digest the consequence of the United Kingdom separating from the European Union and the potentially extended low interest-rate environment out of the Federal Reserve. On Monday, the Financial Select Sector SPDR (NYSEArca: XLF) fell […]

Bank stocks and financial sector exchange traded funds were the biggest losers in U.S. markets as traders weighed the potential years of uncertainty in response to the passing “Brexit” referendum. Broad financial sector ETFs came under fire Friday. The Financial Select Sector SPDR (NYSEArca: XLF) fell 4.9% iShares U.S. Financials ETF (NYSEArca: IYF) dropped 4.5% […]

The votes are in and the United Kingdom will dissolve its 43-year membership in the European Union, triggering mass sell-off in global markets and exchange traded funds (ETFs). Leading the plunge, United Kingdom market-related ETFs were the worst hit, with the First Trust United Kingdom AlphaDEX Fund (NYSEArca: FKU), which provides a smart-beta play on […]

Financial services exchange traded funds have been laggards, but ETFs heavy on investment banks, such as the iShares US Broker-Dealers & Securities Exchanges ETF (NYSEArca: IAI), have been particularly poor performers. For example, IAI is off 10.2% year-to-date. There are signs things are starting to look for up IAI amid increased trading activity in the […]

Investors have been giving real estate investment trusts a second look ahead of indexing sector reclassification, bolstering demand for REITs-related exchange traded funds. “Demand for US real estate securities accelerated in May, as exchanged traded funds focused on the investment segment gathered $1.31 billion of new money, up from $510.4 million in April,” Todd Rosenbluth, […]

More exchange traded fund investors are looking to smart beta or alternative index-based strategies to fill out their investments, and focusing on which targeted factors within the indexing methodology matters when appropriately balancing a portfolio. On a recent webcast, Smart Beta Factors: How Many and What is Ideal?, Joel Schneider, Senior Portfolio Manager and Vice […]

The largest American banks may have to set aside more cash to strengthen balance sheets as a way to obviate further shocks, potentially putting additional strain on the financial sector and related exchange traded funds. Fed governors Daniel Tarullo and Jerome Powell, in separate public comments, have hinted that the central bank would probably require […]

As the markets move and traders ride the momentum, the increased trading activity could help bolster investment banks and brokerage related exchange traded funds. J.P. Morgan Chase & Co.’s corporate and investment banking head Daniel Pinto projects trading activity to rise by over 10% in the second quarter year-over-year, reports Emily Glazer for the Wall […]

While a rising interest rate environment will help banks’ margins, financial sector exchange traded funds may continue to be pressured by losses on loans to beleaguered energy companies. The financial sector is beginning to turnaround with the Financial Select Sector SPDR (NYSEArca: XLF) up 11.5%, iShares U.S. Financials ETF (NYSEArca: IYF) up 11.2% and Vanguard […]

The financial sector and bank exchange traded funds (ETFs) jumped Wednesday on a steepening yield curve ahead of the Federal Reserve announcement. The SPDR S&P Regional Banking ETF (NYSEArca: KRE), the largest regional bank ETF, which have been thirsting for higher interest rates, increased 3.2% Wednesday. The fund also broke above its long-term resistance at […]