The situation continues to deteriorate in financial exchange traded funds with top bank holdings Bank of America (NYSE: BAC) and Citigroup (NYSE: C) feeling another sharp decline Wednesday.
Stock ETFs extended their losing streak as financials led the way lower and Visa (NYSE: V) shares fell after the U.S. Senate voted to limit debit card swipe fees.
Financial sector ETFs fell into negative territory Wednesday afternoon following reports the Senate voted to allow the Federal Reserve to curb fees banks receive from debit card transactions. [Visa, MasterCard Declines Hit Financial ETF After Senate Vote]
Exchange traded products that track sugar futures have bounced the past few weeks after peaking earlier this year. Soft commodities investments, such as a sugar-related exchange traded notes (ETNs), offer a great way to diversify an investor’s commodity portfolio. The iPath DJ-UBS Sugar ETN (NYSEArca: SGG) is up nearly 20% over the past month. The fund tries to reflect front-month futures contracts and rolls exposure to next month’s contracts before maturity. The iPath Pure Beta Sugar ETN (NYSEArca: SGAR) is up 10% in the last month, according to Morningstar. The fund offers greater protection on long-term investments by reducing the risks of roll costs that come from contango. [Sugar High ETNs Back in Sweet Spot?]
ETFs that invest in municipal bonds have regained their footing in 2011 after a nasty plunge late last year. Noted analyst Meredith Whitney touched off a firestorm last year when she told “60 Minutes” that she foresaw hundreds of billions of dollars of defaults in the muni bond market. She appeared on CNBC on Wednesday morning to defend that call. [Muni Bond ETFs Rise as Meredith Whitney Sticks to Her Guns]