에 대한 최신 뉴스 iShares U.S. Financial ETF (ARCA:IYF)

iShares U.S. Financial ETF

Financial Services

Real Estate

Industrials

Technology

The fund seeks to track the investment results of the Dow Jones U.S. Financial Services Index (the Underlying Index), which measures the performance of the financial services sector of the U.S. equity market. The Underlying Index is a subset of the Dow Jones U.S. Index (Parent Index) and includes components of the following subsectors in the Parent Index banks, asset managers, consumer finance, specialty finance, investments services and mortgage finance.

Berkshire Hathaway, Inc.

Jpmorgan Chase & Co.

Bank Of America Corp.

Wells Fargo & Co.

Goldman Sachs Group Inc.

S&P Global Inc

Blackrock Inc.

Progressive Corp.

Citigroup Inc.

Morgan Stanley

iShares US Financials ETF

ETFs

ALLY

iShares Dow Jones US Financial Sector Index Fund

iShares Trust Dow Jones US Financial Services Index Fund

하나의 발언이 JP모건 체이스(NYSE:JPM)의 주식을 화요일 장 중 최대 7.5% 하락시킨 것일까? 그런 것 같다. JP모건의 최고 운영책임자(COO) 다니엘 핀토(Daniel Pinto)가 화요일 업계 행사에서 내년 비용과 순이자소득(NII)에 대한 애널리스트 예측을 완화하였다.

COO가 분석가 전망에 찬물을 끼얹자 화요일 JP모건 주가가 큰 폭으로 하락

News

Analyst Ratings

Trading Ideas

CPNG

CNBC Halftime Report Final Trades: American Express, Coupang, Vertiv, iShares U.S. Financial ETF

Did one comment just send JPMorgan Chase &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>) shares <a href="https://www.benzinga.com/markets/equities/24/09/40797360/jpmorgan-hires-new-managing-directors-for-mid-cap-investment-banking-division-report">to fall by 7.5%</a>?
It appears so. JPMorgan Chief Operating Officer Daniel Pinto tempered analyst forecasts on next year&#8217;s expenses and net interest income (NII) at an industry event Tuesday.
The current NII consensus of $89.5 billion is &#8220;not very reasonable&#8221; in the light of interest-rate forecasts, he <a href="https://www.bloomberg.com/news/articles/2024-09-10/jpmorgan-shares-slide-as-pinto-says-analysts-are-too-optimistic?srnd=homepage-americas&amp;sref=TBDibEcD">said</a> according to Bloomberg. NII &#8220;will be lower,&#8221; he added.
As a result, the stock took its biggest tumble since June 2020.
But Pinto wasn&#8217;t the only bank executive who sounded pessimistic this week.
Read Also: <a href="https://www.benzinga.com/top-stories/24/09/40691590/m-t-bank-to-outperform-peers-analyst-says-overhang-fears-could-erode-over-next-several-quarters">M&amp;T Bank To Outperform Peers, Analyst Says: &#8216;Overhang Fears Could Erode Over Next Several Quarters&#8217;</a>
Goldman Sach Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GS#NYSE">GS</a>) CEO David Solomon said Monday the firm&#8217;s trading revenue is on track to drop 10% in the third quarter. At last check Tuesday, the firm&#8217;s stock is down more than 4.3%.
Ally Financial Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALLY#NYSE">ALLY</a>) is also down over 17.6% at last check. 
The firm confirmed that auto delinquencies and net charge-offs were higher than forecast, sending the stock to its biggest decline since March 2020 while taking consumer lenders Capital One Financial Corp. and Synchrony Financial down with it. 
The 24-firm KBW Bank Index fell 3.5%, even though the Federal Reserve said that it would cut higher proposed capital requirements for the biggest firms in half after industry pushback.
JPMorgan reported NII that missed analysts' estimates for the second quarter as well as higher-than-expected costs. 
Pinto also said Tuesday that expectations for 2025 costs were too balmy, and that third-quarter investment-banking fees could rise 15% while markets revenue increases just 2% to come in below analyst forecasts.
Price Action: JPMorgan fell 5.25% to $205.40 into Tuesday&#8217;s late-afternoon trading.
<ul>
<li>IShares U.S. Financial Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYG#NYSE">IYG</a>) slipped 1.21%</li>
<li>Financial Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>) fell 1.06%</li>
<li>iShares U.S. Financials ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYF#NYSE">IYF</a>) slid 1.13%</li>
</ul>
Read Now: 
<ul>
<li><a href="https://www.benzinga.com/general/24/08/40656492/high-stakes-innovation-is-ai-in-banking-worth-the-gamble">High-Stakes Innovation: Is AI In Banking Worth The Gamble?</a></li>
</ul>
Image: Shutterstock

JPMorgan Shares Tumble After COO Throws Cold Water On Analyst Outlook

On CNBC's &#8220;<a href="https://www.cnbc.com/video/2024/09/09/final-trades-shares-us-financials-etf-exxon-mobil-alphabet-class-a-and-palantir.html">Halftime Report Final Trades</a>,&#8221; Shannon Saccocia of NB Private Wealth named iShares U.S. Financials ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYF#NYSE">IYF</a>) as <a href="https://www.benzinga.com/quote/IYF">her final trade.</a>
Jim Lebenthal of Cerity Partners said Exxon Mobil Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOM#NYSE">XOM</a>) is off just 5% from the recent high level.
The oil major has reportedly withdrawn from the competition to acquire half of Galp Energia‘s (OTC:<a class="ticker" href="https://www.benzinga.com/stock/GLPEY#OTC">GLPEY</a>) stake in a significant oil discovery in Namibia.
Don't forget to check out our <a href="https://www.benzinga.com/premarket/">premarket coverage here</a>
Stephen L. Weiss of Short Hills Capital Partners said Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) is very, very cheap.
In a recent development, the UK's competition watchdog, the Competition and Markets Authority (CMA), has raised objections to the ad tech practices of Google by Alphabet Inc. The tech giant's dominance in the online display advertising market has come under scrutiny.
Joseph M. Terranova of Virtus Investment Partners said Palantir Technologies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NYSE">PLTR</a>) has been added to the S&amp;P 500 index.
S&amp;P Dow Jones Indices said Palantir would be added to the S&amp;P 500 Index, ahead of the start of trading on Sept. 23. Despite widespread anticipation, the S&amp;P had snubbed Palantir in its two previous quarterly rebalancing.
Price Action:
<ul>
<li>iShares U.S. Financials ETF gained 1.2% during Monday's session.</li>
<li>Exxon Mobil shares rose 2.1% to settle at $115.01 on Monday.</li>
<li>Alphabet shares fell 1.3% to close at $148.71.</li>
<li>Palantir Technologies shares jumped 14.1% to close at $34.60/</li>
</ul>
Check This Out: 
<ul>
<li><a href="https://www.benzinga.com/news/24/09/40773243/top-2-health-care-stocks-that-may-collapse-this-quarter">Top 2 Health Care Stocks That May Collapse This Quarter</a></li>
</ul>
Image via Shutterstock

Markets

Media

GLPEY

GOOG

GOOGL

PLTR

Alphabet, Exxon Mobil, Palantir Technologies And More On CNBC's 'Final Trades'

CNBC Halftime Report Final Trades: Exxon Mobil, Alphabet Inc. - Class A, Palantir Technologies, iShares U.S. Financial ETF

JPMorgan Chase &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>) has provided an <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/08/40289608/soundhound-ai-posts-q2-beat-but-analysts-focus-on-amelia-acquisition">artificial-intelligence assistant </a>to more than 60,000 employees, with plans to eventually make the technology available throughout the company.
The program, called LLM Suite, is designed to help employees with tasks such as writing emails and reports, CNBC <a href="https://www.cnbc.com/2024/08/09/jpmorgan-chase-ai-artificial-intelligence-assistant-chatgpt-openai.html">reported</a>.
The bank launched the system with ChatGPT maker OpenAI's large language model, but LLM Suite will allow employees to use other LLMs depending on use cases.
Competitor Morgan Stanley (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MS#NYSE">MS</a>) has given a pair of OpenAI-powered tools to its financial advisors, and Apple Inc. said in June that it was equipping the operating system of hundreds of millions of its consumer devices with OpenAI models.
Read Also: <a href="https://www.benzinga.com/news/24/08/40255295/amazons-4b-stake-in-anthropic-under-uk-investigation-for-anti-competitive-concerns">Amazon&#8217;s $4B AI Partnership With Anthropic Under UK Investigation For Anti-Competitive Concerns</a>
 The bank has introduced LLM Suite so far to its consumer division, investment bank, and asset and wealth management business to give them a hand with writing, summarizing long documents, solving problems with Excel and coming up with ideas.
JPMorgan is already using generative AI to create marketing content for social media channels, create itineraries for a travel agency it acquired in 2022 and summarize meetings for financial advisors, said Chief Data and Analytics Officer Teresa Heitsenrether, as reported by CNBC.
The firm also uses AI to determine where to put new bank branches and ATMs through satellite images, help call center personnel quickly find answers and prevent fraud in its global-payments business, she told CNBC.
The bank plans to eventually use AI to provide autonomous AI agents&nbsp;to carry out complex multistep tasks, a move that may empower some workers but displace others.
Price Action: Shares of JPMorgan were up 0.97% to $206.04 at the time of publication Friday.
<ul>
<li>iShares U.S. Financial Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYG#NYSE">IYG</a>) ticked up 0.45%</li>
<li>Financial Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>) gained 0.26%</li>
<li>iShares U.S. Financials ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYF#NYSE">IYF</a>) rose 0.32%</li>
<li>Vanguard Financials ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VFH#NYSE">VFH</a>) went up 0.27%</li>
<li>Fidelity MSCI Financials Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FNCL#NYSE">FNCL</a>) was up 0.42%</li>
</ul>
Read Next:
<ul>
<li><a href="https://www.benzinga.com/top-stories/24/08/40284758/benzingas-stock-whisper-index-5-stocks-investors-secretly-monitor-but-dont-talk-about-yet" target="_blank" rel="noreferrer noopener">Benzinga&#8217;s ‘Stock Whisper&#8217; Index: 5 Stocks Investors Secretly Monitor But Don&#8217;t Talk About Yet</a></li>
</ul>
Image created using artificial intelligence via Midjourney.

Fintech news covering the emerging Financial Technology services sector

Fintech

Tech

FNCL

JPMorgan Rolls Out AI Assistant To 60,000 Employees For Enhanced Productivity

The Vanguard Financials ETF (ARCA:VFH) was launched on 01/26/2004, and is a passively managed exchange traded fund designed to offer broad exposure to the Financials - Broad segment of the equity market.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Financials - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 2, placing it in top 13%.
<h2>Index Details</h2>
The fund is sponsored by Vanguard. It has amassed assets over $9.39 billion, making it one of the largest ETFs attempting to match the performance of the Financials - Broad segment of the equity market. VFH seeks to match the performance of the MSCI US Investable Market Financials 25/50 Index before fees and expenses.
The MSCI US Investable Market Index/Financials 25/50 measures the investment return of stocks in the financial sector.
<h2>Costs</h2>
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF&#39;s expense ratio.
Annual operating expenses for this ETF are 0.10%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.89%.
<h2>Sector Exposure and Top Holdings</h2>
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Financials sector--about 100% of the portfolio.
Looking at individual holdings, JPMorgan Chase &amp; Co (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/jpm#NYSE">JPM</a>) accounts for about 8.77% of total assets, followed by Berkshire Hathaway Inc and Mastercard Inc.
The top 10 holdings account for about 42.55% of total assets under management.
<h2>Performance and Risk</h2>
The ETF has gained about 9.98% and is up about 19.07% so far this year and in the past one year (as of 08/08/2024), respectively. VFH has traded between $75.97 and $107.02 during this last 52-week period.
The ETF has a beta of 1.09 and standard deviation of 19.50% for the trailing three-year period, making it a medium risk choice in the space. With about 407 holdings, it effectively diversifies company-specific risk.
<h2>Alternatives</h2>
Vanguard Financials ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VFH is an excellent option for investors seeking exposure to the Financials ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
IShares U.S. Financials ETF (ARCA:IYF) tracks Dow Jones U.S. Financials Index and the Financial Select Sector SPDR ETF (ARCA:XLF) tracks Financial Select Sector Index. IShares U.S. Financials ETF has $2.94 billion in assets, Financial Select Sector SPDR ETF has $40.75 billion. IYF has an expense ratio of 0.40% and XLF charges 0.09%.
<a href="https://www.zacks.com/stock/news/2318765/should-you-invest-in-the-vanguard-financials-etf-vfh?cid=CS-BENZ-FT-sector_etf-2318765">To read this article on Zacks.com click here.</a>

Large Cap

Sector ETFs

Should You Invest in the Vanguard Financials ETF?

As the November election approaches, President Joe Biden and former President Donald Trump are offering two very <a href="https://www.benzinga.com/markets/cryptocurrency/24/06/39556388/joe-biden-to-be-replaced-in-2024-election-newsom-tops-democrat-wish-list-betting-odds-but-">different tax policies</a> for the American people when one of them steps into the Oval Office in late January 2025.
If elected, Trump would uphold his 2017 Tax Cuts and Jobs Act, which features a corporate tax rate of 21% and lower taxes for individuals that dropped the tax rate for top earners from 39.6% to 37%.
The policy, which will expire in 2025, also nearly doubled standard deductions to $14,600 for single filers to $29,200 for married filers, FOX Business <a href="https://www.foxbusiness.com/politics/trump-vs-biden-where-presidential-candidates-stand-taxes">reported</a>. 
If Biden stays in office for a second term, he said he would let Trump&#8217;s tax cuts for the wealthy expire, while holding onto reductions for those making less than $400,000. 
Also Read: <a href="http://Joe Biden's Debate Performance Triggers Democratic Panic: 'Biden Sounds Hoarse, Looks Tired And Is Babbling'">Joe Biden&#8217;s Debate Performance Triggers Democratic Panic: &#8216;Biden Sounds Hoarse, Looks Tired And Is Babbling&#8217;</a>
Biden also proposes returning the top individual income tax rate from 37% to 39.6%, implementing a 25% minimum tax rate on households worth more than $100 million and increasing the capital gains tax rate. 
His policy also includes quadrupling the corporate stock buyback tax to 4%, raising the corporate tax rate to 28% and boosting the Medicare tax paid by wealthy Americans.
During Thursday&#8217;s presidential debate, Trump heralded his tax plan as creating the greatest economy the U.S. has ever seen before the COVID-19 pandemic, while Biden criticized it as a $2 trillion tax policy that benefited the very wealthy.
&#8220;What I'm going to do is fix the tax system,&#8221; Biden said during the debate, <a href="https://www.cnn.com/2024/06/27/politics/read-biden-trump-debate-rush-transcript/index.html">according</a> to a CNN transcript.
Biden also knocked Trump&#8217;s proposed 10% tariff on all imports, saying it would cost the average American at least $2,500 a year as a result in higher prices for food and other goods.
Price Action: Stocks and exchange-traded funds in the tax-preparation and financial sectors, both of which can be sensitive to tax-policy changes, gave mixed reactions on Friday to the proposals being offered by Biden and Trump. 
H&amp;R Block Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HRB#NYSE">HRB</a>) gained 0.67% to reach $53.89 by late-afternoon trading on Friday, while Intuit Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTU#NASDAQ">INTU</a>) edged up 0.90% to $567.30 and Morgan Stanley (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MS#NYSE">MS</a>) improved 0.77% to $96.51.
Shares U.S. Financials ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYF#NYSE">IYF</a>) ticked up 0.27%, but Vanguard Consumer Staples ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VDC#NYSE">VDC</a>) fell 0.55% in the late afternoon and Utilities Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>) dipped 1.28%.
Read Now: <a href="https://www.benzinga.com/news/24/06/39540074/joe-biden-shares-his-performance-enhancer-drink-ahead-of-2024-us-presidential-debate-i-dont-know-wha">Joe Biden Shares His Performance Enhancer Drink Ahead Of 2024 US Presidential Debate: &#8216;I Don&#8217;t Know What They&#8217;ve Got In These</a>&#8216;
Photo: Shutterstock

Government

Politics

Economics

Personal Finance

INTU

Who Wins, Who Loses? Biden and Trump's Tax Policies Are Very Different

A year after sparking speculation with its trademark application for &#8220;IndexGPT,&#8221; JPMorgan Chase &amp; Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>) reportedly revealed the product&#8217;s details.
IndexGPT&nbsp;is a novel suite of thematic investment baskets developed using&nbsp;OpenAI&#8217;s&nbsp;GPT-4 model.&nbsp;
The tool utilizes keywords to identify companies associated with emerging&nbsp;themes,&nbsp;gleaned from news articles.
In essence, it automates the creation of thematic indexes, shifting from traditional sectors to trends like cloud computing and e-sports, tapping into Wall Street&#8217;s AI frenzy, according to a&nbsp;report from&nbsp;<a target="_blank" href="https://www.bloomberg.com/news/articles/2024-05-03/jpmorgan-unveils-indexgpt-in-next-wall-street-bid-to-tap-ai-boom?srnd=homepage-americas&amp;sref=TBDibEcD" rel="noreferrer noopener">Bloomberg</a>.
The launch echoes the growing interest in AI-driven investment strategies amid optimism for economic growth.
The report cited Rui Fernandes, JPMorgan&#8217;s head of markets trading structuring, who&nbsp;views IndexGPT as a first step in integrating AI across its index offerings.
Morgan Stanley&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MS#NYSE">MS</a>),&nbsp;Goldman Sachs&nbsp;Group Inc&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GS#NYSE">GS</a>), and&nbsp;Citigroup&nbsp;Inc&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/C#NYSE">C</a>) are among those exploring AI applications.
Also See:&nbsp;<a target="_blank" href="https://www.benzinga.com//node/38220176" rel="noreferrer noopener">Major US Banks Top Q1 Earnings Estimates As&nbsp;High Interest&nbsp;Rates Offer Tailwinds: &#8216;Indicators Continue To Be Favorable,&#8217; Jamie Dimon Says</a>
Interest in thematic funds surged but waned due to performance and rising interest rates, with thematic ETFs seeing significant outflows last year.
IndexGPT generates more keywords than prior software, enhancing thematic representation. The tool targets institutional clients for structured products but&nbsp;also&nbsp;offers&nbsp;potential&nbsp;for trend-following strategies.
JPMorgan Chase had ~$4.1 trillion in&nbsp;<a target="_blank" href="https://www.jpmorganchase.com/content/dam/jpmc/jpmorgan-chase-and-co/investor-relations/documents/quarterly-earnings/2024/1st-quarter/9387d4e9-a7dc-4613-822d-6848965485ee.pdf" rel="noreferrer noopener">assets&nbsp;</a>and ~$337 billion in stockholders&#8217; equity as of March-end.
JPMorgan stock has gained more than 40% in the last 12 months. Investors can gain exposure to the stock via&nbsp;Financial&nbsp;Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>) and&nbsp;IShares U.S. Financials ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYF#NYSE">IYF</a>).
Price Action: JPM shares are trading lower by 0.57% at $190.57&nbsp;at the last check Friday.
Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Read Next: <a href="https://www.benzinga.com/news/earnings/24/04/38247147/goldman-sachs-sees-resurgence-in-debt-underwriting-and-deal-activity-q1-profit-jumps-28" target="_blank" rel="noreferrer noopener">Goldman Sachs Sees Resurgence In Debt Underwriting And Deal Activity, Q1 Profit Jumps 28%</a>
Photo courtesy: Shutterstock

Equities

General

From Speculation To Revelation: JPMorgan Reportedly Unveils IndexGPT AI Tool

With <a href="https://www.benzinga.com/news/earnings/earnings-beats/24/04/38220176/major-us-banks-top-q1-earnings-estimates-as-high-interest-rates-offer-tailwinds-indi">big bank earnings now in the rearview mirror,</a> CNCB Mad Money host and stock picker Jim Cramer on Wednesday weighed in on which of them impressed him the most.
What Happened: Cramer was impressed with the earnings reports of Goldman Sachs Group, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GS#NYSE">GS</a>) and Morgan Stanley (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MS#NYSE">MS</a>). He added the name of Wells Fargo &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WFC#NYSE">WFC</a>) in the same breath.
Cramer premised his picks based on the fee income these banks generated rather than on the net interest income. Fees include income generated from equity and debt underwriting, as well as advisory and asset &amp; wealth management fees. Net interest income, on the other hand, is the difference between the money the banking operation receives on the loans it extends and the money it owes to its depositors.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">When you read through all the big bank quarters so far you like GS and MS so much because of the fees, not the net interest income. Same with Wells Fargo, which had a very good quarter. Big boost in fees
&mdash; Jim Cramer (@jimcramer) <a href="https://twitter.com/jimcramer/status/1780505158616588775?ref_src=twsrc%5Etfw">April 17, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
See Also: <a href="https://www.benzinga.com/money/best-bank-stocks">Best Bank Stocks</a>
Why It&#8217;s Important: The Fed funds rate, which is used as a benchmark to fix various interest rates, is now at a 22-year high of 5.25%-5.50%. This is positive for the net interest income of banks.
The net interest income&#8217;s health also hinges on the provisioning a company sets aside for credit losses. 
For Goldman, which reported a stellar quarter, non-interest revenue rose 21% year-over-year and 26% quarter-over-quarter. Net interest income, meanwhile, was down 10% year-over-year and up 20% sequentially.
JPMorgan Chase &amp; Co., Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>), <a href="https://www.benzinga.com/news/earnings/24/04/38219142/whats-going-on-with-jpmorgan-shares-today">which did not appease the Street with its earnings,</a> did report a double beat. Much of the upside was from higher interest income, facilitated by higher rates and larger loan balances stemming from its First Republic Bank takeover.
After taking a dovish stance immediately after the March Federal Open Market Committee meeting, Jerome Powell has reverted to his hawkish stance. In a speech on Tuesday, he said the restrictive rates should persist as long as the inflation remained above the 2% upper ceiling set by the central bank.
The futures market, however, is pricing in a 67.3% possibility of a rate cut in the September meeting.
The iShares U.S. Financials ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYF#NYSE">IYF</a>) ended Tuesday&#8217;s session down 0.68% at $88.39, according to <a href="https://benzinga.grsm.io/lxquj26b2sag">Benzinga Pro data. </a>
Read Next: <a href="https://www.benzinga.com/news/earnings/24/04/38280369/financial-stocks-fall-after-earnings-major-banks-notch-4-day-losing-streak-regional-banks-hit-lowes">Financial Stocks Fall After Earnings, Major Banks Notch 4-Day Losing Streak: Regional Banks Hit Lowest Level Since Late 2023</a>
Image Via Shutterstock

Jim Cramer Says He Likes Earnings From These Big Banks 'So Much' — Here's Why

JPMorgan Chase &amp; Co.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>) shares are trading lower after it reported&nbsp;<a target="_blank" href="https://www.benzinga.com//node/38217534" rel="noreferrer noopener">first-quarter FY24 results.</a>
Net revenue (managed) of $42.5 billion (+8% Y/Y), beating the consensus of $41.8 billion.
Reported revenue was $41.9 billion in the quarter, up 9% Y/Y. Consumer &amp; Community Banking (CCB) revenue increased 7% Y/Y to $17.7 billion, Corporate &amp; Investment Banking was $13.6 billion (flat Y/Y), and Commercial Banking was $4.0 billion (+13% Y/Y).&nbsp;
Investment Banking fees were up 21% Y/Y, led by higher debt and equity underwriting fees. Asset and Wealth Management revenue was $5.1 billion (+7% Y/Y), and Corporate revenue stood at $2.2 billion in the quarter.
Net interest income increased by 11% Y/Y to $23.2 billion and +5% Y/Y, excluding First Republic.&nbsp;
Noninterest revenue was $19.3 billion, up 5% Y/Y, or up 3% Y/Y excluding First Republic, driven by higher asset management and Investment Banking fees.
Noninterest expense was $22.8 billion, up 13% Y/Y, or +9% Y/Y, excluding First Republic.
Excluding an item resulted in an increase of $550 million (after tax) to reported net income from $13.4 billion to $14.0 billion and an increase of $0.19 per share to reported EPS from $4.44 to $4.63. EPS was $4.44,&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">beating the consensus of $4.15.&nbsp;</a>
Average loans were up 16%, or up 3%, excluding First Republic; average deposits were up 2%, or flat excluding First Republic.
In CCB, Debit and credit card sales volume increased by 9% Y/Y, and Active mobile customers were up 7% Y/Y.&nbsp;
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/news/earnings/24/04/38187129/jpmorgan-earnings-are-imminent-these-most-accurate-analysts-revise-forecasts-ahead-of-earnings-call" rel="noreferrer noopener">JPMorgan Earnings Are Imminent; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call</a>
JPM&#8217;s provision for credit losses was $1.9 billion (-17% Y/Y), including net charge-offs of $2.0 billion and a net reserve release of $72 million.&nbsp;
In AWM,&nbsp;Assets under management (AUM) stood at $3.6 trillion (+19% Y/Y), and client assets stood at $5.2 trillion (+20% Y/Y), driven by higher market levels and continued net inflows.
CET1 capital ratio stood at 15.0%, and the advanced CET1 capital ratio was 15.3%, with a total loss-absorbing capacity of $520 billion.
<a target="_blank" href="https://www.jpmorganchase.com/content/dam/jpmc/jpmorgan-chase-and-co/investor-relations/documents/quarterly-earnings/2024/1st-quarter/fa4917a5-ae5c-4b97-a30d-f07e726e1021.pdf" rel="noreferrer noopener">Outlook</a>&nbsp;FY24:&nbsp;JPMorgan now expects net interest income, excluding Markets, of ~$89 billion (vs.&nbsp;<a target="_blank" href="https://www.benzinga.com//node/36610393" rel="noreferrer noopener">$88 billion earlier</a>).
The bank anticipates card&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">services NCO rate of &lt;3.50%.</a>
Jamie Dimon, Chairman and CEO, said, &#8220;Many economic indicators continue to be favorable.&nbsp;However, looking ahead, we remain alert to a number of significant uncertain forces. First, the global landscape is unsettling – terrible wars and violence continue to cause suffering, and geopolitical tensions are growing. Second, there seems to be a large number of persistent inflationary pressures, which may likely continue.&#8221;&nbsp;
&#8220;And finally, we have never truly experienced the full effect of quantitative tightening on this scale. We do not know how these factors will play out, but we must prepare the Firm for a wide range of potential environments to ensure that we can consistently be there for clients.&#8221;
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/04/38149277/jamie-dimon-equates-ai-to-printing-press-steam-engine-consequences-will-be-extraordinary" rel="noreferrer noopener">Jamie Dimon Equates AI To Printing Press, Steam Engine: &#8216;Consequences Will Be Extraordinary&#8217;</a>
Investors can gain exposure to the stock via&nbsp;IShares U.S. Financial Services ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYG#NYSE">IYG</a>) and&nbsp;IShares U.S. Financial ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYF#NYSE">IYF</a>).
Price Action: JPM shares are down 2.83% at $189.89 premarket on the last check Friday.
Photo by Katherine Welles on Shutterstock

Earnings

Guidance

Movers

What's Going On With JPMorgan Shares Today?

JPMorgan Chase &amp; Co.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>) reportedly reorganized the leadership in its global banking division, seating new leaders in capital markets and investment banking.
The new structure merges the commercial, corporate and investment banking groups under executives Filippo Gori and Doug Petno, who were chosen to lead the broader unit in February this year, reported Reuters.
Related:<a target="_blank" href="https://www.benzinga.com/markets/equities/24/01/36800536/jpmorgan-ceo-shuffles-top-managers-details" rel="noreferrer noopener">&nbsp;JPMorgan CEO Shuffles Top Managers: Details</a>
As per the memo seen by Reuters, the bank appointed Kevin Foley as the global head of capital markets, and Achintya Mangla, previously Global head of ECM, will leave the bank to pursue other opportunities.
Moreover, as per the report, Dorothee Blessing and Jay Horine will become global co-heads of investment banking coverage, and Anu Aiyengar will get extra responsibilities as head of advisory.
Also, JP Morgan said that John Simmons will lead commercial banking, while Bregje de Best and James Roddy will jointly lead global corporate banking.
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/markets/equities/24/04/38073515/chase-launches-new-media-platform-for-direct-consumer-connection-details" rel="noreferrer noopener">Chase Launches New Media Platform For Direct Consumer Connection: Details</a>
Investors can gain exposure to the stock via&nbsp;&nbsp;IShares U.S. Financial Services ETF&nbsp;(ARCA:&nbsp;IYG)&nbsp;and&nbsp;IShares U.S. Financial ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYF#NYSE">IYF</a>).
Price Action: JPM shares are up 0.19% at $196.02 premarket on the last check Friday.
Photo via Shutterstock

Management

JPMorgan Appoints New Leaders To Steer Global Banking Unit: Report

JPMorgan Chase &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>) Chase launched a new digital media business, Chase Media Solution, which will aid the brands in connecting directly with the financial institution&#8217;s <a href="https://www.benzinga.com/pressreleases/24/04/b38064346/chase-launches-chase-media-solutions-a-new-digital-media-business-connecting-80-million-u-s-consum" target="_blank" rel="noreferrer noopener">80 million customers</a>.
Chase Media Solutions serves as a key conduit for brands, connecting them with consumers&#8217; personal passions and interests.&nbsp;
The new platform will combine the scale of a retail media network with Chase-owned transaction data to help brands target customers precisely.
Chase Media Solutions follows the integration of Figg, which was acquired in 2022.
Rich Muhlstock, President of Chase Media Solutions, said, &#8220;Like retailers, we have first-party data and a dedicated audience. But what sets us apart is the unrivaled scale and insights from our customers – having long-served as a trusted guide for their financial decisions.&#8221;
&#8220;Chase reaches across brands, merchants and shopping verticals, providing a comprehensive view of purchase behavior; this strengthens the degree of personalization, helping brands deliver offers that stoke consumer interests.&#8221;
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/03/37464248/jpmorgan-aims-for-1-5b-in-ai-value-by-2023-boosting-efficiency-in-corporate-finance" rel="noreferrer noopener">JPMorgan Uses AI To Cut Down On Manual Labor: How Dimon&#8217;s Bank Leverages Tech</a>
Investors can gain exposure to the stock via&nbsp;IShares U.S. Financial Services ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYG#NYSE">IYG</a>) and&nbsp;IShares U.S. Financial ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYF#NYSE">IYF</a>).
Price Action: JPM shares are down 0.12% at $198.62 on the last check Wednesday.
Photo via Shutterstock

Chase Launches New Media Platform For Direct Consumer Connection: Details

The big three fund managers that jointly manage more than $23 trillion in assets are coming under the scrutiny of federal regulators over their large holdings in many <a href="https://www.benzinga.com/topic/banks">U.S. banks</a>.
BlackRock Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BLK#NYSE">BLK</a>), State Street Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STT#NYSE">STT</a>) and Vanguard run funds that passively track the performances of equity indexes such as the S&amp;P 500. To achieve this, they attempt to match the weightings of stocks held in these funds, to the index weightings.
But in doing so, BlackRock and Vanguard have each built holdings of more than 10% of the shares at several banks, and this is worrying the Federal Deposit Insurance Corp (FDIC), one of the government institutions responsible for banking supervision.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/02103557/newplot-2024-04-02T153538.964.png" alt="" class="wp-image-274036" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/02103557/newplot-2024-04-02T153538.964.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/02103557/newplot-2024-04-02T153538.964-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
Also Read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38047230/historic-s-p-500-rally-in-q1-flashes-bullish-signals-for-2024-only-the-ninth-time-s">Historic S&amp;P 500 Rally In Q1 Flashes Bullish Signals For 2024: &#8216;Only The Ninth Time Since 1940&#8217;</a>
<h2 class="wp-block-heading">Ten Percent Rule</h2>
At present, 10% ownership of shares is considered a threshold at which point an investor is considered to have a controlling interest in a bank. Investors must then seek regulatory permission to acquire shares beyond this threshold.
But fund managers are largely exempt from this requirement given their passive investment roles, although they can still use their share ownership to vote in shareholder meetings.
Some board members of the FDIC, are becoming concerned that the big fund managers could overlook their commitment to passive investment and exert greater influence over banks, given the size of their stakes.
Board member Jonathan McKernan <a href="https://www.wsj.com/finance/regulation/regulator-probes-blackrock-and-vanguard-over-huge-stakes-in-u-s-banks-b9f58619?mod=latest_headlines">told</a> the Wall Street Journal of his concerns and is seeking a curb on BlackRock and Vanguard from acquiring further shares above the 10% threshold while the FDIC investigates.
&#8220;We need to be doing more to actually confirm that the Big Three are not leveraging their large stakes to exert influence over FDIC-regulated banks,&#8221; he told the WSJ.
BlackRock owns the iShares series of exchange-traded funds. Its flagship ETF that follows the S&amp;P 500 is the iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>). Vanguard, meanwhile, manages the Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>), while State Street runs the SPDR series and the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) is its big index tracker.
<h2 class="wp-block-heading">&#8216;Problem Of Twelve&#8217;</h2>
It&#8217;s not only regulators who have concerns over the influence of the big funds. In his 2023 book &#8220;The Problem of Twelve,&#8221; Harvard law professor John Coates asserts that roughly 12 people will have effectively seized power over the majority of U.S. public companies in the future.
He issued similar <a href="https://globalreports.columbia.edu/books/the-problem-of-twelve/">warnings</a> about &#8220;a small number of institutions [that] acquire the means to exert outsized influence over the politics and economy of a nation.&#8221;
He says in the book: &#8220;The Big Four index funds of Vanguard, State Street, Fidelity, and BlackRock control more than 20% of the votes of S&amp;P 500 companies — a concentration of power that's unprecedented in America.&#8221;
In its iShares US Financials ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYF#NYSE">IYF</a>) BlackRock&#8217;s biggest banking holdings are in JPMorgan Chase &amp; Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>), Bank of America Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAC#NYSE">BAC</a>) and Wells Fargo &amp; Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WFC#NYSE">WFC</a>). The Vanguard Financials ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VFH#NYSE">VFH</a>) holds the same three stocks but with differing weightings.
Benzinga reached out to the FDIC for further details, but the agency said it was not commenting.
Now Read: <a href="https://www.benzinga.com/news/earnings/24/04/38021303/fanduel-success-drives-flutter-to-seek-primary-listing-on-nyse">FanDuel Success Drives Flutter To Seek Primary Listing On NYSE</a>
Image by Shutterstock.

Analyst Color

Regulations

Broad U.S. Equity ETFs

Could 3 Powerful Fund Managers Take Control Of US Banks?

On CNBC&#39;s &quot;Halftime Report,&quot; the investment committee gave their final trades.
BNY Mellon Investment Management&#39;s Liz Young likes iSHARES DOW JONES US FINANCIAL (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/iyf#NYSE">IYF</a>) and notes this is the cheapest sector in the S&amp;P on a P/E basis, and said the yield curve continues to steepen, which will benefit the sector in 2021.
Virtus Investment Partners&#39; Joe Terranova likes T. Rowe Price Group, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/trow#NASDAQ">TROW</a>).
<a href="https://www.benzinga.com/money/how-to-buy-apple-stock/">See also:&nbsp;How To Buy Apple Stock</a>
Market Rebellion Co-Founder Jon Najarian likes Dropbox, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/dbx#NASDAQ">DBX</a>) and believes the company is going to beat on their upcoming earnings. He noted he purchased call options.&nbsp;
Cerity Partners&#39; Jim Lebenthal likes Apple Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aapl#NASDAQ">AAPL</a>).

AAPL

TROW

CNBC 'Halftime Report' Final Trades Of The Day: Apple, Dropbox, More

Exclusives

iShares Trust Dow Jones US Real Estate Fund Index

Tigress Financial's Ivan Feinseth, When Asked About Weakness In Real Estate And Financials Notes 'banks and real estate operators could potentially be hurt in an economic downturn caused by COVID-19,' Points To Cheesecake Factory Not Making Apr. Rent

<a href="https://www.benzinga.com/analyst-ratings/analyst-color/18/12/12895375/takeaways-from-mnuchins-phone-call-with-big-bank-ceos">Bank </a> earnings season is around the corner, and most banks are expected to continue their forecast-beating streak, according to Barclays.
<h3>The Analyst</h3>
Barclays analyst Jason Goldberg previewed&nbsp;<a href="https://www.benzinga.com/analyst-ratings/analyst-color/19/01/12965834/are-big-banks-a-buy-before-earnings-season">big banks</a>&#39; Q4 earnings.&nbsp;
<h3>The Thesis</h3>
Higher loan growth, higher net interest margins, the eliminations of the DIF surcharge&nbsp;and active stock buybacks are likely to more than offset weak fee income,&nbsp; market-sensitive products&nbsp;and mortgage revenue, Goldberg said in a Thursday note.
Consensus EPS estimates have come down recently, the analyst said, with most market-sensitive names such as Goldman Sachs Group Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gs#NYSE">GS</a>), State Street Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/stt#NYSE">STT</a>), Morgan Stanley (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ms#NYSE">MS</a>), Citigroup Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/c#NYSE">C</a>), JPMorgan Chase &amp; Co. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/jpm#NYSE">JPM</a>) and Northern Trust Corporation (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ntrs#NASDAQ">NTRS</a>) seeing at least 2-percent reductions.
M&amp;T Bank Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mtb#NYSE">MTB</a>), Comerica Incorporated (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cma#NYSE">CMA</a>) and Wells Fargo &amp; Co (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/wfc#NYSE">WFC</a>) are the only banks to see upward adjustment in consensus estimates over the past 30 days, he said.
The increase may have been due to PaP gain, Goldberg said.&nbsp;
Barclays is 5 cents below consensus for SunTrust Banks, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/sti#NYSE">STI</a>), PNC Financial Services Group Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pnc#NYSE">PNC</a>), Capital One Financial Corp. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cof#NYSE">COF</a>) and Ally Financial Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ally#NYSE">ALLY</a>).
The analyst&#39;s estimates are the furthest below consensus for Goldman and Wells Fargo.
Relative to Q3,&nbsp;Barclays expects an increase in net interest income that&#39;s reflective of&nbsp;improved loan growth, wider net interest margins, varied fee income trends, controlled expenses, and higher loan loss provisions, with benign, asset-quality metrics&nbsp;and active share repurchases.
The reduction in the&nbsp;<a href=" https://www.americanbanker.com/list/cheat-sheet-fdic-pitches-brokered-deposit-update-other-reg-reforms"> DIF surcharge</a>&nbsp;will bring down expenses for banks in Barclays&#39; coverage universe by 1.2 percent in Q4, Goldberg said.&nbsp;
On the flipside, the analyst said he expects increased marketing spending, technology investments, charges related to bank closures and losses from securities portfolio repositioning as factors impacting performance in the near-term.
This should help operating leverage in 2019, Goldberg said.&nbsp;
Despite an anticipated slowdown in GDP, Barclays expects U.S. large-cap bank stocks to rise and outperform the S&amp;P 500 Index, especially after the steep sell-off into the end of 2018.
&quot; ... We expect our coverage to benefit from continued earnings/book value growth, active capital management, &lsquo;regulatory finalization&#39;&nbsp;and an increasing benefit from leveraging technology/economies of scale,&quot; the analyst said.&nbsp;
<h3>The Price Action</h3>
The&nbsp;Financial Select Sector SPDR Fund (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xlf#NYSE">XLF</a>) was rising 0.14 percent at $24.48 at the time of publication Friday, while the iShares Dow Jones US Financial (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/iyf#NYSE">IYF</a>) was near-flat at $109.90.&nbsp;
Related Links:
<a href=" https://www.benzinga.com/media/18/12/12795900/pro-citigroup-should-acquire-deutsche-bank">Pro: Citigroup Should Acquire Deutsche Bank </a>
<a href=" https://www.benzinga.com/government/18/12/12858422/goldman-sachs-faces-criminal-charges-from-malaysia-over-1mdb-scandal">Goldman Sachs Faces Criminal Charges From Malaysia Over 1MDB Scandal </a>

Previews

NTRS

Barclays Constructive On US Large-Cap Bank Stocks Ahead Of Earnings Reports

The iShares MSCI Europe Financials ETF (NASDAQ: <a class="ticker" href="/stock/eufn#NASDAQ">EUFN</a>) is down just over 1 percent year-to-date. While it&#39;s not alarming decline by any mean, it&#39;s a broad view: a more focused look at EUFN reveals the exchange traded fund resides about 11 percent below the 52-week high it set in February.
EUNF is more than 11 percent below its 200-day moving average. Several other factors point to more potential downside for EUFN, which tracks the MSCI Europe Financials Index.
<h3>
	What Happened</h3>
The $2.13-billion EUFN holds 83 stocks, with HSBC Holdings Plc (NYSE: <a class="ticker" href="/stock/hbc#NYSE">HBC</a>) accounting for more than 10 percent of the fund&#39;s weight. None of EUFN&#39;s other holdings command weights of more than 5.18 percent.
At the geographic level, EUFN is top-heavy, with the U.K. representing over 30 percent of the fund&#39;s roster. Switzerland, France and Germany combine for almost 34 percent of EUFN&#39;s geographic exposure.
<h3>
	Why It&#39;s Important</h3>
&ldquo;A key question is: why are European banks weakening, given the weakness in the euro exchange rate is a tailwind for broad European equities [and] Europe is an export region?&rdquo;&nbsp;Rareview Macro founder Neil Azous said in a Monday note.&nbsp;
Some marquee economic data points could test EUFN in the near-term, which is a point to ponder for investors, as some recent data releases out of the Eurozone have been disappointing.
&ldquo;Secondly, the Eurozone economic data surprise index closed last Friday at negative&nbsp;91.7,&rdquo; said Azous. &ldquo;The 50-day moving average, effectively duration weighting the data, is negative 73.21, also the lowest since 2011 when it bottomed at negative 80.71.&rdquo;
<h3>
	What&#39;s Next</h3>
The challenges facing EUFN may indicate the ETF will be challenged to deliver compelling risk-reward for investors. EUFN&#39;s <a href="https://www.ishares.com/us/products/239645/?referrer=tickerSearch">three-year standard deviation</a> is 18.23 percent, or more than 500 basis points above the same metric on the iShares U.S. Financials ETF (NYSE: <a class="ticker" href="/stock/iyf#NYSE">IYF</a>).
The key point here is that further weakness in the financial sector could lead to broader European equity weakness,&rdquo; said Azous. &ldquo;A second question is if the financial sector leads broader European equities lower, would other markets follow, including the U.S.?&rdquo;
Related Links:
<a href="https://www.benzinga.com/trading-ideas/long-ideas/18/05/11746303/giving-consumer-staples-etfs-another-chance">Another Chance For XLP</a>
<a href="https://www.benzinga.com/trading-ideas/long-ideas/18/05/11738894/another-small-cap-etf-to-consider">Look At This Small-Cap ETF</a>

Short Ideas

Eurozone

iShares MSCI Europe Financials Sector Index Fund

EUFN

European Bank ETF Could Face Trouble Ahead

In 1928, Congress passed a joint resolution establishing Child Health Day, the express <a href="https://www.law.cornell.edu/uscode/text/36/105">purpose </a>of which was to raise awareness &ldquo;of the fundamental necessity of a year-round program to protect and develop the health of the children of the United States.&rdquo;
Monday, on the nation&rsquo;s 88th Child Health Day, Congress is reflecting on its failure to renew the <a href="https://www.healthcare.gov/medicaid-chip/childrens-health-insurance-program/">Children&rsquo;s Health Insurance Program</a>, which technically expired Friday amid House attempts to repeal the Affordable Care Act.
For the last 20 years, CHIP has provided comprehensive coverage to youth whose parents earn too much to qualify for Medicaid. The law is credited with decreasing the percentage of children without insurance from 14 percent in 1997 to 4.5 percent in 2015.
Its continuation is now uncertain.
Related Link: <a href="https://www.benzinga.com/news/17/09/10091370/healthcare-stocks-spike-after-mccain-announces-no-vote-on-graham-cassidy-proposa">Health Care Stocks Spike After McCain Announces 'No' Vote On Graham-Cassidy Proposal</a>
<h3>What&rsquo;s At Stake</h3>
The House Energy and Commerce Committee will <a href="https://www.axios.com/house-to-move-forward-on-chip-next-week-2490584583.html">work on a bill</a> this week to reauthorize spending, projected at $17.4 billion for 2018, but the immediate lapse could significantly impact some of the 9 million children enrolled in the program.
Although most states can extend aid with rollovers from their two-year allotments, Minnesota <a href="https://www.vox.com/policy-and-politics/2017/9/27/16373494/chip-funding-reauthorization-congress">had been on course</a> to expend its entire share Sept. 30 and was exploring &ldquo;extraordinary measures&rdquo; to continue coverage, including using $10 million from its general fund.
Some states are expected to exhaust their resources by the end of the year. Thirty-one will run out by March, according to the <a href="https://www.macpac.gov/wp-content/uploads/2017/03/Federal-CHIP-Funding_When-Will-States-Exhaust-Allotments.pdf">Medicaid and CHIP Payment and Access Commission</a>.
If Congress does not renew federal funding, states will be forced to decide whether to terminate their CHIP segments or proceed with significantly reduced budgets. Children in states that shut down the program will either shift to employer-sponsored or subsidized exchange coverage &mdash; or become uninsured.
Physicians <a href="https://www.washingtonpost.com/opinions/will-congress-force-me-to-deny-health-care-to-children-once-again/2017/08/07/734ff7fe-792a-11e7-9eac-d56bd5568db8_story.html?tid=a_inl&amp;utm_term=.c43f63b3461b">may be forced</a> to reject those uncovered patients and deny immunizations, sick visits and prescriptions, which <a href="https://www.washingtonpost.com/news/answer-sheet/wp/2017/10/01/9-million-kids-get-health-insurance-under-chip-congress-just-let-it-expire/?utm_term=.f338ac745779">may ultimately result</a> in public health crises.
At the time of publication, the Health Care SPDR (ETF) (NYSE: <a class="ticker" href="/stock/xlv#NYSE">XLV</a>) was trading at $82.41.
Related Link: <a href="https://www.benzinga.com/news/17/09/10122440/hhs-secretary-tom-price-heads-for-departure-gate-after-private-plane-scandal">HHS Secretary Tom Price Heads For Departure Gate After Private Plane Scandal</a>

Health Care

Legal

iShares Trust S&P Global Financials Sector Index Fund

iShares Trust S&P Global Healthcare Sector Index Fund

iShares Trust Dow Jones US Healthcare Sector Index Fund

Rydex ETF Trust Rydex S&P Equal Weight Financial ETF

Rydex ETF Trust Rydex S&P Equal Weight Health ETF

9 Million American Children Lost Funding For Their Insurance

Modern portfolio theory (MPT) is evolving, and investors can gain exposure to that evolution with a new exchange-traded fund. The iSectors Post-MPT Growth ETF (NASDAQ: PMPT) debuted Wednesday as the first ETF from iSectors, which launched the fund partnership with Virtus Investment Partners (NASDAQ: <a class="ticker" href="/stock/vrts#NASDAQ">VRTS</a>).
<h3>Post-Modern Portfolio Theory And PMPT</h3>
&ldquo;PMPT is an actively managed ETF based on the firm&rsquo;s flagship investment model, the iSectors Post-MPT Growth Allocation. PMPT aims to optimize investor return and minimize the downside risk. PMPT seeks to improve upon the principles of Modern Portfolio Theory (MPT) by applying modern research and technology. To achieve this, PMPT invests in nine low-correlated asset classes, including basic materials, bonds, energy, financials, gold, healthcare, real estate, technology and utilities to ensure a high level of diversification,&rdquo; <a href="http://www.isectorsetfs.com/">according to iSectors</a>.
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/trading-ideas/long-ideas/16/08/8361087/these-arent-middling-returns-with-this-mid-cap-etf">These Aren't Middling Returns With This Mid-Cap ETF</a></bzrelatedlink>
The ETF follows the increasingly popular ETF of ETFs structure as all of PMPT&#39;s holdings are other ETFs.
<h3>An ETF Of ETFs</h3>
PMPT&#39;s largest holdings include the Market Vectors Gold Miners ETF (NYSE: <a class="ticker" href="/stock/gdx#NYSE">GDX</a>), iShares Barclays 20+ Yr Treas.Bond (ETF) (NASDAQ: <a class="ticker" href="/stock/tlt#NASDAQ">TLT</a>) and the Vanguard REIT Index Fund (NYSE: <a class="ticker" href="/stock/vnq#NYSE">VNQ</a>).
 Other holdings in the new ETF include the iShares Dow Jones US Utilities (ETF) (NYSE: <a class="ticker" href="/stock/idu#NYSE">IDU</a>) and the iShares Dow Jones US Financial (ETF) (NYSE: <a class="ticker" href="/stock/iyf#NYSE">IYF</a>).
PMPT &ldquo;may be invested up to 30 percent at any one time into any single class, with the exception of government bonds, to which the models may allocate up to 50 percent. It remains 100 percent invested at all times,&rdquo; according to iSectors. 
PMPT can invest in leveraged ETFs and currently counts one such fund among its holdings.
&ldquo;Modern Portfolio Theory assumes that investors are risk averse, markets are efficient and the allocation of an investment portfolio is more important than individual security selection. MPT favors long-term investing, diversification that seeks an asset allocation with the highest return per any given level of risk,&rdquo; according to <a href="http://www.etftrends.com/2016/08/a-new-active-etf-tries-to-improve-on-modern-portfolio-theory/">ETF Trends</a>.
Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email <a href="mailto:feedback@benzinga.com">feedback@benzinga.com</a> with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!

Long Ideas

Bonds

Specialty ETFs

New ETFs

Market Vectors ETF Trust Market Vectors Gold Miners

iShares Trust Dow Jones US Utilities Sector Index Fund

iShares Trust Barclays 20+ Year Treasury Bond Fund

VRTS

Go Post-Modern With This New ETF

Sector rotation is very common in the stock market, as investors allocate investment dollars from an underperforming sector to an outperforming sector, or a sector that has the potential to offer superior returns.
"There's always rotation going on in these markets from one sector to another," Joel Elconin, co-host of Benzinga's daily <a href="https://soundcloud.com/bztv/premarket-prep-for-may-4-may-the-markets-be-with-you?in=bztv/sets/daily-broadcasts">PreMarket Prep explained during Wednesday's edition.</a> "There are a lot of different places people can place their money."
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/analyst-ratings/analyst-color/16/04/7823223/a-bullish-call-on-a-favorite-healthcare-etf">A Bullish Call On A Favorite Healthcare ETF</a></bzrelatedlink>
JJ Kinahan, TDAmeritrade's chief strategist was a guest on the segment and offered his expert opinion on sector rotation. He said that it was perhaps a bit surprising to see a sector rotation outside of financials, despite the fact that there has been no interest rate increase.
He added that many major financial firms touted that the exposure of their retail and corporate clients "seem to be going really well" &ndash; a fact that makes a sector rotation outside of financials even more surprising.
Kinahan continued that the healthcare segment is showing some good earnings results and he expects investors to rotate back into the space. However, he cautioned that in an election year, the healthcare sector is the most vulnerable out of every sector to rule and law changes.
<h3>A Few Relevant ETFs</h3>
<ul>
<li>iShares Dow Jones US Healthcare (ETF) (NYSE: <a class="ticker" href="/stock/iyh#NYSE">IYH</a>) is currently down 4.4 percent year-to-date, but up 7.95 percent over the last three months.</li>
<li>Guggenheim S&amp;P 500 Equal Weight Healthcare ETF (NYSE: <a class="ticker" href="/stock/ryh#NYSE">RYH</a>) is down 4.08 percent year-to-date, but up 7.66 percent over the last three months.</li>
<li>iShares S&amp;P Global Healthcare Sect.(ETF) (NYSE: <a class="ticker" href="/stock/ixj#NYSE">IXJ</a>) is down 4.31 percent year-to-date, but up 6.42 percent over the past three months.</li>
<li>ProShares Ultra Financials (ETF) (NYSE: <a class="ticker" href="/stock/uyg#NYSE">UYG</a>) is up 17.26 percent over the last three months and down 5.94 percent year-to-date.</li>
<li>Vanguard Financials ETF (NYSE: <a class="ticker" href="/stock/vfh#NYSE">VFH</a>) is up 10.62 percent over the past three months and down 2.17 percent year-to-date.</li>
<li>iShares Dow Jones US Financial (ETF) (NYSE: <a class="ticker" href="/stock/iyf#NYSE">IYF</a>) is up 10.28 percent over the three months, but down 2.29 percent year-to-date.</li>
<li>Guggenheim S&amp;P 500 Equal Weight Financials ETF (NYSE: <a class="ticker" href="/stock/ryf#NYSE">RYF</a>) is down 1.46 percent year-to-date, but up 9.77 percent over the three-month period.</li>
<li>Fidelity MSCI Financials Index ETF (NYSE: <a class="ticker" href="/stock/fncl#NYSE">FNCL</a>) is down 2.76 percent year-to-date, but up 9.82 percent over the past three months.</li>
</ul>

Interview

Are We Seeing A Sector Rotation Away From Financials And Into Healthcare?

Sector rankings to consider with a market rotation underway

JPMorgan Chase: Covered Calls Can Help Navigate Fed Rate Cuts

Serving Up Volatility: How U.S. Presidential Elections Rally The Securities Lending Markets

Energy, Financials, and Materials stir up some interest on Wall Street

U.S. Equity Market Betas - Why They Matter And How They Are Changing

Consumer Credit Is A Ticking Time Bomb For The Banks

iShares U.S. Financials ETF declares quarterly distribution of $0.7126

The financial sector is poised for strong growth, driven by the rising penetration of digital technologies and increasing demand for end-user investments. Thus, to gain exposure to the financial sector, one could consider buying The Financial Select Sector SPDR (XLF), Vanguard Financials Index Fund (VFH), and iShares U.S. Financials (IYF). Read on… The financial services sector is rapidly expanding due to rising demand for insurance and loans, globalization and urbanization driving investments, global economic growth, and the integration of fintech-enabled digital payment solutions.
Given this positive sentiment, adding financial ETFs such as The Financial Select Sector SPDR Fund (<a href="https://stocknews.com/stock/XLF/">XLF</a>), Vanguard Financials Index Fund ETF (<a href="https://stocknews.com/stock/VFH/">VFH</a>), and iShares U.S. Financials ETF (<a href="https://stocknews.com/stock/IYF/">IYF</a>) might be a wise choice for a diversified portfolio.
The U.S. financial services industry is being driven by the <a href="https://www.expertmarketresearch.com/reports/us-financial-services-market">growing demand for insurance and loans</a> among consumers. Globalization and urbanization are leading to an increasing demand for end-user investments. The industry is also propelled by global economic growth, leading to the increased demand for financial services.
Moreover, the global banking and financial services market is expected to grow at a <a href="https://www.cognitivemarketresearch.com/banking-and-financial-services-market-report">CAGR of 7.9% from 2023 to 2030</a>. Furthermore, market players are significantly integrating with financial technology-enabled banks to offer modern digital payment solutions, including mobile wallets and contactless payment, which contributes to the segment's growth.
With that in mind, let's look at the fundamentals of the top three <a href="https://stocknews.com/category/financial-equities-etfs/">Financial Equities ETFs</a>, beginning with the third one.
ETF #3: iShares U.S. Financials ETF (<a href="https://stocknews.com/stock/IYF/">IYF</a>)
IYF is an exchange-traded fund launched by BlackRock, Inc. BlackRock Fund Advisors manage it. It invests in stocks of companies operating across financial sectors. It invests in growth and value stocks of companies across diversified market capitalization.
With $3.15 Billion in AUM, its top holdings are Berkshire Hathaway Inc. Class B (<a href="https://stocknews.com/stock/BRK.B/">BRK.B</a>) with a 12.6% weighting, JPMorgan Chase &amp; Co. (<a href="https://stocknews.com/stock/JPM/">JPM</a>) at 9.3%, and Bank of America Corp (<a href="https://stocknews.com/stock/BAC/">BAC</a>) at 4.4% weight.
The ETF's <a href="https://www.investopedia.com/terms/e/expenseratio.asp">expense ratio</a> is 0.39%, compared to the category average of 1.52%. IYF's fund inflows were $17.55 million over the past month. The fund pays an annual dividend of $1.38, which translates to a 1.34% yield at the current price level.
IYF has gained 10% over the past three months to close the last trading session at $103.47. It has a five-year beta of 1.05. The fund's NAV was $103.55 as of September 27, 2024.
IYF's <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a> reflect this promising outlook. The ETF's overall A rating equates to a Strong Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
The fund has an A grade for Trade and Buy &amp; Hold. IYF is ranked #4 out of 41 in the <a href="https://stocknews.com/category/financial-equities-etfs/">Financial Equities ETFs</a> ETF. <a href="https://stocknews.com/stock/IYF/">Click here</a> to access all the IYF ratings.
ETF #2: Vanguard Financials Index Fund ETF Shares (<a href="https://stocknews.com/stock/VFH/">VFH</a>)
VFH is an exchange-traded fund launched and managed by Vanguard Equity Index Group that tracks the MSCI US IMI 25/50 Financials Index. It is passively managed, holds U.S. financial stocks across all market caps, and uses a market-cap selection and weighting scheme to capture the broader financial market.
With $10.08 billion in AUM, VFH's top holding is JPM, which has an 8.8% weighting in the fund. It is followed by BRK.B at 8.6% and Mastercard Incorporated (<a href="https://stocknews.com/stock/MA/">MA</a>) at 5.5% weighting. The fund has a total of 404 holdings.
VFH has an expense ratio of 0.10%, lower than the category average of 1.52%. The fund has a NAV of $109.58 as of September 27, 2024. The ETF's net inflows were $99.86 million over the past three months.
VFH pays a $1.95 annual dividend yielding 1.78% at the prevailing price level. The fund's dividend payouts have grown at a CAGR of 5.6% over the past five years. Also, VFH has raised its dividends for three consecutive years.
VFH has gained 9.8% over the past three months and 18.6% over the past nine months to close the last trading session at $109.29.
VFH's POWR Ratings reflect solid prospects. Its overall rating of A equates to a Strong Buy in our proprietary rating system.
VFH has an A grade for Buy &amp; Hold and Trade. Of the 41 ETFs in the same group, it is ranked #2. Get all VFH ratings <a href="https://stocknews.com/stock/VFH/">here</a>.
ETF #1: The Financial Select Sector SPDR Fund (<a href="https://stocknews.com/stock/XLF/">XLF</a>)
XLF provides efficient exposure to the U.S. financials segment. Its cap-weighted, S&amp;P 500-only portfolio concentrates on large banks and avoids small caps. It invests in companies from industries like diversified financial services, insurance, commercial banks, and capital markets. The fund tracks the Financial Select Sector Index.
The fund has an AUM of $41.57 billion. Its top holdings include BRK.B with a 13.32% weighting, followed by JPM at a 9.61% weighting, and Visa Inc. (<a href="https://stocknews.com/stock/V/">V</a>) at 7.24%. XLF has a total of 73 holdings.
The fund has an expense ratio of 0.09%, lower than the category average of 1.52%. Over the past six months, XLF fund inflows came in at $649.22 million.
XLF pays an annual dividend of $0.66, which translates to a yield of 1.47% at the current share price. Its dividend payouts have grown at a CAGR of 3.35% over the past five years.
XLF has surged 7.2% over the past six months and 35.1% over the past year to close the last trading session at $44.86. The fund has a NAV of $45.92 as of September 27, 2024.
XLF's POWR Ratings reflect its strong outlook. The ETF has an overall rating of A, which translates to a Strong Buy in our proprietary rating system.
XLF has an A grade for Buy &amp; Hold and Trade. The fund has topped the list of 41 ETFs in the same group.
To access all the POWR Ratings for XLF, <a href="https://stocknews.com/stock/XLF/">click here</a>.
What To Do Next?
43 year investment veteran, Steve Reitmeister, has just released his 2024 market outlook along with trading plan and top 11 picks for the year ahead.
<a href="https://report.stocknews.com/sign-up/stock-market-outlook-2024/?formplacement=artbotad_smo24_rep">2024 Stock Market Outlook &gt;</a>

<hr />
IYF shares were trading at $103.35 per share on Monday afternoon, down $0.12 (-0.12%). Year-to-date, IYF has gained 22.22%, versus a 21.23% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Nidhi Agarwal</h2> <img src='https:/wp-content/uploads/2023/03/Nidhi-Agarwal_Headshot-3.jpg' style="float:left; padding:5px;width:125px;">Nidhi is passionate about the capital market and wealth management, which led her to pursue a career as an investment analyst. She holds a bachelor's degree in finance and marketing and is pursuing the CFA program.

Her fundamental approach to analyzing stocks helps investors identify the best investment opportunities.<a href="https://stocknews.com/authors/?author=nidhi-agarwal">More...</a>The post <a href=https://stocknews.com/news/iyf-vfh-xlf-3-financial-etfs-to-buy-for-a-diversified-portfolio/>3 Financial ETFs to Buy for a Diversified Portfolio</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

Comments

iShares U.S. Financial ETF

뉴스

에 대한 최신 뉴스 iShares U.S. Financial ETF (ARCA:IYF)

화요일, 9월 10, 2024

뉴스

파트너 / 기고자

벤징가 글로벌