Financials

Investors can capitalize on a shifting market and changing business cycles through sector-specific exchange traded fund plays. On the recent webcast, Strategizing with Sectors, Jared Rowley, Research Strategist for State Street Global Advisors, pointed out that different sectors show varying correlations to the benchmark S&P 500 index. [Sector ETFs to Capture Cyclical Trends] For instance, […]

Propped up by the European Central Bank’s aggressive quantitative easing program, Eurozone equities and stock-related exchange traded funds, notably those with a heavier emphasis on the financial sector, could provide solid growth opportunities in the years ahead. According to a Citigroup research note, Eurozone companies are set to deliver robust returns over the coming years, […]

In response to the economic slowdown, Beijing will support growth and cut reserve requirements for banks, bolstering China-related exchange traded funds. The Global X China Financials ETF (NYSEArca: CHIX) rose 0.9% Friday while the broader iShares China Large-Cap ETF (NYSEArca: FXI) gained 0.6%. Year-to-date, FXI is down 4.5% and CHIX declined 8.3%. China’s policy makers […]

As more people jump back into the bond market, investors are looking deeper into the debt market and picking out riskier securities, such as subordinated debt. Through a relatively new exchange traded fund, investors can also easily access this market. Money managers are investing in high-yield subordinated debt as safety bets pushed down yields on […]

Without a resolution to the escalating geopolitical tension between Ukraine and Russia, exchange traded fund investors should keep a close eye on a couple of asset classes to help minimize or even profit from the increased volatility. According to analysis on funds in a theoretical scenario of a falling ruble, higher natural gas prices and […]

Horizons ETFs, a new player in the U.S. exchange traded fund scene, is expanding its line of income generating strategies with a financial sector-focused covered call fund. The Horizons S&P Financial Select Sector Covered Call ETF (NYSEArca: HFIN) began trading Monday, November 18, according to a press release. HFIN has a 0.70% expense ratio. The […]

The U.S. government shutdown has wreaked havoc on stocks, but hints of a potential resolution could help propel some areas in the market and exchange traded funds. On Wednesday, Rep. Paul Ryan R.-Wisc. proposed a short-term solution to the debt limit, which has drawn broad support from conservatives. Some of the most recent best performing […]

Many have modified fixed-income positions in response to interest rates changes, but investors can also look at the broker exchange traded fund to ride rising rates. According to S&P Capital IQ analyst Ken Leon, broker-dealers, firms that engage in buying and selling securities or operating as both a broker and dealer, are better suited to […]

The market recovered in September after volatility spiked on the Syria crisis in late August. Among the best performing sector plays, clean energy, Brazil financials and lithium exchange traded funds lead the charge. In September, the Guggenheim Solar ETF (NYSEArca: TAN) rose 27.1%, Market Vectors Solar Energy (NYSEArca: KWT) gained 24.0% and PowerShares Wilderhill Clean […]

After the broader markets fell off from their record high at the start of August, exchange traded fund investors have the opportunity to buy strength on weakness to capitalize on the recent pullback in banks, biotechs and healthcare. Investors can identify strength in ETFs that show qualities like relative strength against the market and a […]

Ever since Fidelity Investments and BlackRock announced a deeper partnership in March, Fidelity hinted at engineering new exchange traded funds, and now the firm has finally pulled the trigger with a filing Friday. Interestingly, BlackRock (NYSE: BLK) will be the subadvisor for the planned Fidelity sector ETFs. BlackRock oversees the iShares ETFs. Fidelity filed for […]

Federal Reserve Chairman Ben Bernanke’s reiteration that interest rates will remain low for quite a while and traders’ interpretations that the Fed will not commence tapering of its quantitative easing program as soon as previously expected helped boost stocks Thursday. In the process, yields on 10-year Treasurys dropped 10 basis points to 2.6% from 2.7%. […]

XLF (SPDR Financial, Expense Ratio 0.18%) options activity has picked up in recent sessions, most recently with accumulation of August 20 puts. This is not particularly shocking given that we are knee deep in earnings season for top component members of the index BRK.B (8.52%), WFC (8.48%), JPM (8.33%), C (6.09%), and BAC (5.79%). XLF […]

Investors looking for sector ETFs that have delivered the goods in recent months do not have look far beyond financial services, the second-largest sector weight in the S&P 500. Over the past 90 days, the Financial Select Sector SPDR (NYSEArca: XLF) has tacked on a tidy 10.7% compared to a gain of 5.9% for the […]

After hitting record highs in the second quarter, stock and exchange traded funds experienced a steep correction in June, fueled by speculation that the Fed would begin tapering its quantitative easing program and a rising interest rate environment. Nevertheless, fears over an end to easy money abated somewhat and the markets recovered some lost ground […]