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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 financial services sector, the second-largest sector allocation in the S&P 500, and the corresponding exchange traded funds, such as the Financial Select Sector SPDR (NYSEArca: XLF), have endured some tumult this year as the Federal Reserve has continually put off raising interest rates. However, European banks are disappointing investors even more. For example, the […]

The upcoming United Kingdom referendum, or “Brexit” vote, that will decide its fate within the European Union has caused a lot of market headaches, especially among bank stock and financial sector-related exchange traded fund investors. The financial sector is among the most at risk if the U.K. decides to part ways with the European Union. […]

Earlier this week, the Federal Reserve once again opted against raising interest rates, dealing disappointment to investors that had piled into financial services exchange traded funds over the past several weeks in anticipation of the Fed’s first interest rate hike of 2016. The Financial Select Sector SPDR (NYSEArca: XLF) and rival financial services ETFs started […]

With U.S. stocks flirting with all-time highs, tactical investors should be evaluating the sectors and the relevant exchange traded funds that could carry broader benchmarks, such as the S&P 500, over the top. Some market observers believe that includes the financial services and healthcare groups, the second- and third-largest sector weights, respectively, in the S&P […]

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 […]

Financial services exchange traded funds still hang in the Federal Reserve’s balance, particularly after the May jobs report disappointed. That could mean the Fed again passes on raising interest rates later this month, which would likely weigh on financial services ETFs that have rallying in anticipation of higher rates. With bond markets pricing in a […]

In one of this year’s most impressive laggard-to-leader stories, financial services exchange traded funds, including the Financial Select Sector SPDR (NYSEArca: XLF), are rallying on expectations that the Federal Reserve will raise interest rates for the first time this year later this month. With a steepening yield curve, or wider spread between short- and long-term […]

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 […]

With bond markets pricing in a rate hike from the Federal Reserve next month, some familiar exchange traded funds (ETFs) are starting to benefit. That includes the Financial Select Sector SPDR (NYSEArca: XLF) and the PowerShares DB U.S. Dollar Index Bullish Fund (NYSEArca: UUP), both of which have floundered this year as the Fed has […]

By Todd Rosenbluth, Director of ETF & Mutual Fund Research – S&P Global Market Intelligence State Street Global Advisors (SSGA) is the third largest ETF provider with $436 billion in assets according to Factset, aided by $2.1 billion of new assets in April. Jim Ross is an Executive Vice President of State Street Global Advisors […]

Investors should focus on the financial sector as the probability of a rising interest rate environments becomes more likely, notably bank-related exchange traded funds that can capitalize on a steepening yield curve. Minutes from the Federal Reserve’s April meeting showed that the central bank was readying for an interest rate hike in June if economic […]

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 […]

The Financial Select Sector SPDR (NYSEArca: XLF), the largest exchange traded fund (ETF) tracking the financial services sector, and rival financial services ETFs are struggling this year. While banks have struggled to reduce costs and add new income to counter a low-rate environment, many have previously bet on Federal Reserve interest rate hikes to support […]

Investment guru Warren Buffett and his Berkshire Hathaway (NYSE: BRK.A) partner Charlie Munger are known for buying good companies at fair prices. Exchange traded fund investors can also mimic the investment philosophy through strategies that target companies with wide economic moats or sustainable competitive advantages. Specifically, Munger and Buffett consider every aspect of a business […]

Without a Doha accord on an oil production freeze, the markets may suffer through an extended period of low oil prices, potentially causing a ripple effect that could extend to financial sector and U.S. dollar exchange traded funds. “While nothing explicitly has been said, it’s not a far reach to suggest that the production freeze […]

At the start of the year, the financial sector outlook looked promising, with the Federal Reserve set on interest rate normalization and banks raising loan rates to capitalize on the rising rate environment. However, as the Fed turns more dovish and banks continue to struggle, financial stocks and sector exchange traded funds may languish, heading […]

Investors have become all too familiar with the tale of woe confounding the Financial Select Sector SPDR (NYSEArca: XLF) and rival financial services exchange traded funds. XLF is down 7.1% year-to-date, making it the worst performer among the sector SPDR ETFs. Some of XLF’s rivals are performing even more poorly. Although expectations are in place […]

Well-documented have been the struggles of the financial services sector this year. Exchange traded funds tracking the second-largest sector weight in the S&P 500, including the Financial Select Sector SPDR (NYSEArca: XLF), have been stymied by the Federal Reserve’s reluctance to raise interest rates, among other factors. Down almost 7.5% year-to-date, XLF is one of […]

The Financial Select Sector SPDR (NYSEArca: XLF), the largest exchange traded fund tracking the financial services sector, is one of the worst-performing sector SPDR ETFs this year. Many rival financial services ETFs have been just as bad if not worse than XLF. Few have been better. Those are ominous statements to be sure, but making […]

It was a rough first quarter for exchange traded funds tracking the financial services sector as highlighted by the 5.1% decline for the Financial Select Sector SPDR (NYSEArca: XLF), the largest ETF tracking the sector. The Federal Reserve’s decision in late March to not increase interest rates and speculation that the central bank will not […]

Financial stocks and sector-related exchange traded funds have been among the worst performing areas of the market so far this year. Bargain hunters seeking a cheap play may want to pass on this area as the industry may not turn around anytime soon. The Financial Select Sector SPDR (NYSEArca: XLF) is still down 5.9% year-to-date, […]

Investors have been sticking to the sidelines over a volatile first quarter This has dragging on ETFs that track investment banks and brokerage firms Wall Street’s busy season is underway, but for bank traders, market activity has been surprisingly tepid Trading activity usually picks up at the start of the year, but investors have been sticking […]

Federal Reserve keeps short-term interest rates unchanged at a range of between 0.25% and 0.5% Fed officials also suggested there will only be two more rate hikes this year Weakening dollar helps bolster commodity assets With the Federal Reserve keeping short-term interest rates unchanged, rate-sensitive exchange traded funds popped while some trades dependent on higher rates […]

Changes to S&P 500 index will affect how people position in REITs ahead S&P Dow Jones Indices stated it would add an 11th sector to its Global Industry Classification Standard Looking ahead, the new GICS classification will also further support the REITs sector Exchange traded fund investors have some exposure to real estate investment trusts […]

Strengthened speculative-grade debt may continue to support junk bond-related ETFs If fixed-income market follows historical trends, junk bonds may continue to rally over the next few weeks Financials are the best performing sector when junk bond ETFs rise, according to Kensho data The renewed risk-on environment has helped speculative-grade debt strengthen could continue to support junk […]

Financial sector ETFs maintained momentum Wednesday after stumbling at start of year Global financial sectors also rallied on Wednesday Market observers appear to be pouncing on a sector that has been underperforming in 2016 Despite a relatively tepid Wednesday, financial sector exchange traded funds maintained their momentum as bargain hunters jumped back into an oversold market segment. […]

Financial services ETFs show weakness across sector in 2016 XLF falls 2.5% in February, bringing year-to-date loss to 11.5% Rival financial services ETFs such as IYF and VFH have been just as bad, if not worse The Financial Select Sector SPDR (NYSEArca: XLF) fell 2.5% last month, bringing its year-to-date loss to 11.5%. Rival financial services exchange […]

Down 11.2% year-to-date, the Financial Select Sector SPDR (NYSEArca: XLF) is the worst performer among the sector SPDR exchange traded funds. Rival financial services ETFs, such as the iShares U.S. Financials ETF (NYSEArca: IYF) and the Vanguard Financials ETF (NYSEArca: VFH) have not been much better. Oil’s bear market has been cited as one of […]