As investors have come to grips with the fact that it is highly likely that the Federal Reserve will finally raise interest rates next month, 10-year Treasury yields have begun pricing in that view by soaring nearly 8.5 percent over the past month.
Although financial services stocks, on a historical basis, have questionable reactions to increases in borrowing costs, conventional wisdom holds that the sector is positively correlated to higher interest rates. The corresponding exchange traded funds are reflecting that thesis as the Financial Select Sector SPDR (NYSE: XLF), the largest financial services ETF, is higher by 2.1 percent over the past month.
With rising rates right around the corner (maybe), investors might want to have a look at a new financial services ETF, the Financial Services Select Sector SPDR (NYSE: p>
/www.benzinga.com/trading-ideas/long-ideas/15/11/5962347/a-new-sector-etf-defends-against-rising-rates-on-the-cheap alt=A New Sector ETF Defends Against Rising Rates On The Cheap>Full story available on Benzinga.com
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