ETF Trends
ETF Trends

Financial exchange traded funds (ETFs) took a hit in midday trading after Bank of America (BAC) reported that its profit fell 77% in the first quarter.

It was worse than expected, as analysts had been anticipating a profit of 41 cents per share, reports Ieva M. Augstums for the Associated Press. Instead, it reported earnings of 23 cents per share, compared with $1.16 per share a year earlier. Bank of America’s stock was down 1.6% in midday trading.

The earnings report is weighing on the already troubled financial ETFs that count Bank of America as a major component.

  • Regional Bank HOLDRs (RKH): Bank of America is 9.1% of the fund; down 7.3% year-to-date
  • Financial Select Sector SPDR (XLF): BAC is 8.8%; down 8.8% year-to-date
  • iShares Dow Jones US Financial Services (IYG): BAC is 11.7%; down 10.2% year-to-date

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The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.