At the fundamental level, a pickup in trading activity following the summer lull could boost IAI over the next few months. Fueling a rise in trading activity, the diverging central bank policies are creating opportunities in the fixed-income market – the U.S. is signalling an end to its loose monetary policies, whereas the European Central Bank, People’s Bank of China and Bank of Japan are moving toward more easing.

The differing monetary policies are also contributing to volatility in the foreign-exchange markets, notably bolstering the strength in the U.S. dollar, which could also benefit currency trading revenue among brokerage desks. [Rebound for a Wall Street ETF]

iShares US Broker-Dealers ETF vs. S&P 500 Relative Strength

Chart Courtesy: Captain John Charts

ETF Trends editorial team contributed to this post.