SPDR KBW Regional Banking (NYSEArca: KRE): This would be a play on small regional banks, with the idea that these banks have been unjustifiably sold off with the larger financial institutions. To hedge your bets, you could make a long KRE/short XLF play.
Direxion Daily Financial Bull 3X Shares (NYSEArca: FAS): This would be a leveraged bullish play. The fund’s top holdings are similar to XLF’s, but returns will be goosed 3x. [Our Guide to Leveraged and Inverse ETFs.]
There are more financial ETFs than these three out there, though. You can locate other financial ETFs by visiting our ETF Analyzer and typing “financial” or “bank” to get a list of other financial sector ETFs. Our Analyzer will also allow you to see which ETFs are above their trend lines and other key information that will help you decide where to be.
For more stories about big banks and the financial sector, visit our financial category.
Sumin Kim contributed to this article.