A higher dividend from BofA could stoke institutional buying of the stock and possibly stem the tide of outflows from some financial services ETFs. [Charts for Bank ETFs are Getting Nasty]
Supporters of the Direxion Daily Financial Bull 3X Shares (NYSEArca: FAS) are likely cheering the BofA news as well. That triple-leveraged ETF is up 1.5% today and looks poised for just its second higher finish since the start of this month. Traders have poured $102 million into FAS since last Wednesday, according to Direxion.
Twenty ETFs, including XLF and IYF, feature BofA among their top-10 holdings, according to S&P Capital IQ data.
Financial Select Sector SPDR