An exchange traded fund following U.S. financial stocks dropped 6% on Wednesday as Bank of America (NYSE: BAC) shares fell under $7 again on renewed selling.
Bank of America was Wednesday’s most active stock by share volume. The shares fell 11% after Tuesday’s bounce.
B. of A. has plunged in the wake of American International Group (NYSE: AIG) suing bank seeking to recover over $10 billion in mortgage-related losses. [Financial ETFs Tumble]
Financial Select Sector SPDR Fund (NYSEArca: XLF) was down 6% at last check and was the market’s third-most-active security by share volume on Wednesday.
The financial sector ETF was off 17.4% year to date as of Aug. 9, according to Morningstar. Bank of America accounts for 4.6% of the portfolio.
Financial Select Sector SPDR Fund
Chart source: StockCharts.com.
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