Two things are abundantly clear about the financial services sector and its corresponding exchange-traded funds this year. First, the sector is the second worst performer in the S&P 500 behind healthcare. Second, the Federal Reserve is catching plenty of flak for the financial services sector's woes.
It is not just the Fed that is hurting financial services stocks and ETFs. Low energy prices are still seen as problematic for some mid-tier and smaller regional banks with big exposure to energy loans. Capital markets activity has been lethargic this year. Combine that with the Fed's ongoing dithering with interest rates and it is not surprising that ETFs like the SPDR KBW Bank (ETF) (NYSE: KBE) are struggling.
KBE
The $2.28 billion KBE is down nearly 10 percent year-to-date. ...
/www.benzinga.com/trading-ideas/long-ideas/16/04/7801029/reasons-to-consider-this-out-of-favor-sectors-etfs alt=Reasons To Consider This Out Of Favor Sector's ETFs>Full story available on Benzinga.com
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