Financial ETFs to Watch as SEC's Investigation Continues | Page 2 of 2 | ETF Trends

On the flip side, Direxion Daily Financial Bear 3x Shares (NYSEArca: FAZ) could be a way to play the fallout. FAZ gained about 10% on news of Goldman Sachs’ lawsuit. [How Leveraged ETFs Can Add Oomph.]

Investors should also take a look at community and regional banks, since these banks generally did not get involved in selling investment vehicles like Abacus. ETFs that track these types of banks include SPDR KBW Regional Banking ETF (NYSEArca: KRE) and iShares Dow Jones US Regional Banks (NYSEArca: IAT).

If you’re holding an ETF with heavy exposure to the big banks, watch closely for any impact and have your exit strategy firmly in place. [Why Stop Losses Matter.]

For more information on banks, visit our financial category.

  • Vanguard Financials ETF (NYSEArca: VFH) 8.9% JP Morgan Chase, 7.1% Wells Fargo, 7% Bank of America, 4.4% Goldman Sachs

  • Financial Select Sector SPDR (NYSEArca: XLF) 11.5% JP Morgan Chase, 10.5% Bank of America, 9.7% Wells Fargo, 6.1% Goldman Sachs

  • SPDR KBW Bank (NYSEArca: KBE): 10% Bank of America, 7.8% Citigroup, 7.4% Wells Fargo, 6.3% JP Morgan Chase

Sumin Kim contributed to this article.