An ETF to Bank on Trump Deregulating U.S. Financial Industry

Each week, ETF Trends publisher Tom Lydon sits down for “ETF of the Week” for MarketWatch on Chuck Jaffe’s MoneyLife Show where he highlights big movers and losers among exchange traded funds.

This week, Lydon looked at the SPDR S&P Bank ETF (KBE), which more or less equally weights components. Its largest holdings include: First Republic Bank 2.5%, M&T Bank 2.5%, PNC Financial Services 2.5%, SunTrust Banks 2.4%, Bank of the Ozarks 2.4%, U.S. Bancorp 2.4%, Citizens Financial Group 2.4%, SVB Financail Group 2.4%, Signature Bank 2.3% and JPMorgan Chase 2.3%

Since the elections, bank stocks outperformed on combination of renewed enthusiasm for higher interest rates, optimism over corporate tax reform, reduced regulatory burdens and improved earnings growth.

President Donald Trump’s executive order establish framework to scale back 2010 Dodd-Frank financial-overhaul law. Part of administration’s plan to dismantle much of the regulatory system enacted after the financial crisis

Click here to listen to the podcast.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.