The bad news continues for financial-related exchange traded funds (ETFs).
The Regional Bank HOLDRs (RKH) hit its lowest point in more than two years on this week, reports Thomson Financial. The drop came after National City said that it’s cutting its quarterly dividend to 21 cents, down from 41 cents a share, as well as cutting 900 jobs in the closure of its wholesale mortgage division.
Among the fund’s other heavily-weighted holdings are J.P. Morgan Chase & Co. (JPM), Wachovia (WB) and Wells Fargo & Co. (WFC).
Other ETFs that track the regional bank sector are also down, including KBW Bank ETF (KBE) and iShares Dow Jones U.S. Regional Banks (IAT).
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