With the Federal Reserve's December meeting just a few weeks away and expectations rising that the central bank will finally raise interest rates, certain sector exchange-traded funds are garnering renewed inflows. Predictably, that includes financial services ETFs.
And when the conversation is about financial services ETFs and the potentially positive impact rising rates have on those funds, the conversation must include regional bank funds such as the SPDR KBW Regional Banking (ETF) (NYSE: KRE).
Focus On KRE
Home to $2.75 billion in assets under management, KRE is the largest and most heavily traded regional bank ETF.
As investors have come to terms with the notion that the Federal Reserve is increasingly likely to raise interest rates following its December meeting, 10-year Treasury yields are reflecting that view with a one-month surge of 11.4 percent. Predictably, KRE, an ETF that is positively correlated to rising rates, has benefited with a one-month gain of nearly ...
/www.benzinga.com/trading-ideas/long-ideas/15/11/5996193/investors-are-pouring-into-bank-etfs-ahead-of-fed-meeting alt=Investors Are Pouring Into Bank ETFs Ahead Of Fed Meeting>Full story available on Benzinga.com
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