On Thursday, JPMorgan listed Goldman Sachs among its top investment banking picks for 2014.
S&P also has a marketweight rating on the $138 million SPDR S&P Capital Markets ETF (NYSEArca: KCE). KCE is more of a play on asset management firms and broker-dealers as no pure play investment banks are found among the ETF’s top-10 holdings. In fact, ETF issuer WisdomTree (NasdaqGM: WETF) is KCE’s largest holding at a weight of 3%. KCE’s tenth-largest holding is Northern Trust (NasdaqGM: NTRS), parent company of the FlexShares ETF provider.
KCE is split 63.6% to asset managers and custody banks and 36.4% to investment banks.
“In conclusion, we have positive fundamental sub-industry outlooks for both the Investment Banking & Brokerage and Asset Management & Custody Banks sub-industries. In our opinion, much of the success for these two sub-industries will be dependent on gains in the capital markets, continued asset flows into equities, and increased transactions for both mergers & acquisitions (M&A) and equity and debt underwriting,” said S&P Capital IQ in the note.
SPDR S&P Capital Markets ETF
