The SPDR S&P Capital Markets ETF (NYSEArca: KCE), an equal-weight rival to IAI, features E*Trade and Schwab as its ninth- and tenth-largest holdings, respectively. Those two stocks combine for 5.6% of the ETF’s weight.
Throw in the 2.6% weight to TD Ameritrade and KCE is a credible trade on E*Trade takeover speculation. However, the ETF is an even more credible play on the rapid growth of the ETF industry. The $175.9 million KCE holds shares of, in the following order, State Street (NYSE: STT), Invesco (NYSE: IVZ), BlackRock (NYSE: BLK) and WisdomTree (NasdaqGM: WETF). Those are four of the five largest U.S. ETF sponsors. [Wall Street ETF Awakens]
KCE also holds Janus Capital (NYSE: JNS), Bank of New York Mellon (NYSE: BNY), Northern Trust (NasdaqGM: NTRS) and Schwab, all of which have significant ETF exposure.
SPDR S&P Capital Markets ETF
ETF Trends editorial team contributed to this post.