Banks Lead Rally as VIX ETFs Pull Back | ETF Trends

SPDR S&P 500 ETF (NYSEArca: SPY) was set for a nearly 1% rise at Wednesday’s open as an $8.5 billion mortgage settlement from Bank of America (NYSE: BAC) boosted the financial sector.

Volatility-linked exchange traded funds fell, meanwhile, on expectations austerity measures will pass in Greece and help relieve debt tensions in Europe.

VelocityShares Daily 2X VIX Short-Term ETN (NYSEArca: TVIX) was down nearly 5% in premarket trading Wednesday. The leveraged exchange traded note is designed to track futures contracts on the CBOE Volatility Index. When the ETN trades lower, it suggests investors are less fearful.

A financial sector ETF rallied more than 1% on news Bank of America has reached an agreement to repurchase mortgage-backed securities packaged by Countrywide Financial. B. of A. shares added 5% on hopes the deal will take away a key overhang on the stock. In other large-cap bank shares, Citigroup (NYSE: C) rose 2%, JP Morgan (NYSE: JPM) gained 1.5% and Wells Fargo (NYSE: WFC) climbed 2.4% before the opening bell. [Financial ETF Jumps]

Precious metals ETFs rose Wednesday with all eyes on the Greek vote. [Gold, Silver ETFs Higher]


The opinions and forecasts expressed herein are solely those of John Spence, 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.