Despite the lethargic second-quarter performance for bank stocks, investors have allocated some capital to the relevant ETFs. For example, XLF and VFH have taken in combined $107 million this quarter, while the Fidelity MSCI Financials Index ETF (NYSEArca: FNCL) has found its way into the $100 million club.
That after the financial services sector posted glum first-quarter earnings growth.
“The diversified financials services industry had earnings declines of 43% relative to the prior year. This industry weakness also masked the 20% and 19%, growth for the Real Estate Investment Trusts (REITs)and insurance industries.,” said S&P Capital IQ. [Where Earnings Growth Was Among Sector ETFs[
In an anecdotal sign that some traders are bracing for a decline in bank stocks, the Direxion Daily Financial Bear 3X Shares (NYSEArca: FAZ) has seen creation activity over the past month while money has been pulled from the Direxion Daily Financial Bull 3X Shares (NYSEArca: FAS), according to Direxion data.
Financial Select Sector SPDR
