There is often a fine line between legitimate value and value traps. Where the laggard financial services sector and its corresponding exchange-traded funds fall this year is up for debate, but there is no debating that the S&P 500's second-largest sector weight is a dud to this point in the year.
Recent Banking Performance
Even with the benefit of some recent upside, the Financial Select Sector SPDR Fund (NYSE: XLF), the largest financial services ETF, is up a piddly tenth of a percent this year. The PowerShares KBW Bank Portfolio ETF (NYSE: KBWB), which tracks the oft-cited KBW Nasdaq Bank Index, is lower by nearly 7 percent.
Arguably the most obvious issue plaguing KBWB, XLF and other financial services ETFs is the Federal Reserve's refusal to boost interest rates. However, the Fed recently provided some good news with the release of the most recent Comprehensive Capital Analysis and Review (CCAR) results.
The results of the Fed's CCAR ...
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