“ETFs are a way for people who have a view of a sector rather than specific companies to play the trade,” Michael Iachini, managing director of ETF Research at Schwab, said.
The financial ETF has climbed above its 50-day moving average, a closely watched technical indicator.
From Feb. 14 through Oct. 3, bank stocks fell 40% before recovering this month.
“In the 45 years of daily bank stock performance data we have available, this was only the sixth such decline and fourth if we combine three 40%-plus declines in 2008/2009 (there were two 20%-plus rallies separating these sell-offs),” according to Deutsche Bank.
Financial Select Sector SPDR
For more information on the financial sector, visit our financial category.
Max Chen contributed to this article.