“We believe this is likely unless bond yields move back to a sustainable level above 2 percent,” KBW added.
The financial sector has lagged the broader equities market. Over the past five years, the Financial Select Sector SPDR (NYSEArca: XLF) has returned an average annualized 13.5%, whereas the SPDR S&P 500 ETF (NYSEArca: SPY) returned 16.4%.
PowerShares KBW High Dividend Yield Financial Portfolio
For more information on the financial sector, visit our financial category.
Max Chen contributed to this article.