Another ETF to keep an eye on this week is the Fidelity MSCI Financials Index ETF (NYSEArca: FNCL). FNCL allocates over 22% its weight to the aforementioned stocks. About a week away from its first anniversary, FNCL had nearly $148 million in assets under management as of Sept. 30. The ETF has added $13.6 million since the start of this month. [Fidelity ETFs Quick t $1B in Assets]
In a sign that some investors and ETF strategists are betting on a rally in the financial services sector, XLF has raked in nearly $148 million just this month as some investors have warmed to bank stocks as value plays.
Several of the marquee constituents in XLF and FNCL mentioned here trade at discounts to the S&P 500. Additionally, dividends are beginning to rise as well. The average financial sector yield dipped to 1.22% in December 2009 from 4.44% in December 2008, and now, yields are back up to 1.6%. Financials have been among the biggest drivers of S&P 500 dividend growth over the past several years. [Bank ETFs as Value Plays]
Fidelity MSCI Financials Index ETF
