Related: 3 Insurance ETFs for a Rising Rate Environment

Opportunistic traders who want capitalize on the short-term volatility have a number of leveraged and inverse ETF options to enhance potential returns. For instance, the Direxion Daily Regional Banks 3x Bull Shares (NYSEArca: DPST) can capitalize on short-term views on further strength in the financial sector, or the Direxion Daily Regional Banks 3x Bear Shares (NYSEArca: WDRW) can express short-term hedge of the opposite.

“If KRE breaks out and climbs above old highs at the $58 zone, it could attract buyers on a breakout. An important breakout test is in play for KRE this week,” according to ETF Daily News. “Bank Index (BKX) is testing an important breakout level as well. What KRE and BKX does in the next couple of weeks, could be very impactful for the banking industry and broad market overall.”

For more information on the financial sector, visit our financial category.

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