ETF Spotlight on the RevenueShares Financials Sector Fund (NYSEArca: RWW), part of an ongoing series.
Assets: $28.9 million
Objective: The RevenueShares Financials Sector Fund tries to provide investment results that outperform the price and yield of the Financials Sector of the S&P 500 Index. The Fund is comprised of securities from the S&P Financials Index.
Holdings: Top holdings include Berkshire Hathaway INC-CL B (NYSE: BRK-B) 12.4%, J.P. Morgan Chase (NYSE: JPM) 7.4%, Bank of America (NYSE: BAC) 7.0%, Citigroup (NYSE: C) 6.5% and Wells Fargo (NYSE: WFC) 6.2%.
What You Should Know:
- RevenueShares sponsors the fund.
- RWW has a 0.49% expense ratio.
- The ETF has 81 holdings, and the top ten components make up 59.3% of the overall portfolio.
- Sub-sector allocations include financial 95%, real estate investment trusts 3.4%, diversified financial services 0.7% and consumer non-cyclical 0.6%.
- RWW is up 1.5% over the past month, up 5.6% over the last three months and up 39.7% year-to-date.
- The broader financial industry is up 13.9% year-to-date.
- The fund is 10.1% above its 200-day exponential moving average.
- The ETF ranks holdings by top line revenue, instead of the traditional market-capitalization methodology.
- RWW also rebalances each quarter to update revenue data.
Next page: The latest news
The Latest News:
- The Office of the Comptroller of the Currency said banks are seeking profits by financing more into already-indebted companies and expanding into unfamiliar sectors, reports Ryan Tracy for the Wall Street Journal.
- “Our banks are looking at new products [and]weakening underwriting standards in some cases, in order to try and improve that top line revenue number,” Darrin Benhart, the OCC’s deputy comptroller for credit and market risk, said in the article.
- The Basel Committee on Banking Supervision scaled back minimum capital requirements to 15% of securitization, instead of the 20% proposed last year, after banks warned that the initial requirements were too harsh, Bloomberg reports.
RevenueShares Financials Sector Fund
For past stories in this series, visit our ETF Spotlight category.
Max Chen contributed to this article.