“Higher yields tend to be positively correlated both to stock returns and to measures of economic growth, indicative of the direction of causality running from economic outcomes to markets,” Weisberger said.

Consequently, those who still believe in the momentum in U.S. stocks may look to financials to capture a potential area of strength ahead. ETF investors may look to sector-specific plays like the Financial Select Sector SPDR (NYSEArca: XLF), Fidelity MSCI Financials Index ETF (NYSEArca: FNCL), iShares U.S. Financials ETF (NYSEArca: IYF) and Vanguard Financials ETF (NYSEArca: VFH).

Additionally, for more targeted bank specific plays, investors may turn to sub-sector-specific ETFs like the iShares U.S. Regional Banks ETF (NYSEArca: IAT), SPDR S&P Regional Banking ETF (NYSEArca: KRE), PowerShares KBW Regional Bank Portfolio (NYSEArca: KBWR) and SPDR S&P Bank ETF (NYSEArca: KBE).

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

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