Morgan Stanley (NYSE: MS), IAI’s third-largest holding, has reported four consecutive quarters of higher earnings and revenue. Goldman and Morgan Stanley combine for 14.2% of IAI’s weight.

The outlook for IAI’s bulge bracket/investment banking components heading into 2014 is bright. Corporate leaders expect “a 17 percent rise in M&A activity. Bond and syndicated loan activity is also expected to rise 17 percent. Sixty-one percent of the hochos think there will be growth funded by public share offerings,” according to CNBC.

iShares U.S. Broker-Dealers ETF


Tom Lydon’s clients own shares of KRE