Those cautious comments come ahead of a possible interest rate hike by the Federal Reserve next month, a move that many believe would be a boon for regional bank stocks and ETFs.
A rising interest rate environment will throw a wrench into the financial markets. Nevertheless, bank-related exchange traded funds could weather the storm as financial firms have positioned ahead of the potential rate changes. KRE’s sensitivity to interest rates is well known.
SEE MORE: As Fed Leaves Rates Unchanged, Big Bank ETFs Celebrate
“Financials stocks have been the best performing group since Trump won the U.S. presidential race given expectations that lower financial regulation, lower corporate taxes and higher interest rates could spark growth in the sector,” reports CNBC.
SPDR S&P Regional Banking ETF (NYSEArca: KRE)
