In XLF, VFH, and IYF, banks have the largest weight. They make up 42.32% of XLF, 40.34% of VFH, and 36.38% of IYF. XLF is benchmarked to the S&P Financials Select Sector Index.
There’s not much divergence in the three-month performance of the funds XLF, VFH, and IYF. XLF has gained 6.13% in the trailing three months, while VFH and IYF have lost 5.98% and 7.63%, respectively.
Traditionally, the mutual fund industry has been a leader when it comes to fund investments. But growth has been on the side of ETFs with inflows growing two times that of mutual funds last year.
Investors could invest in financial ETFs to join the broad financial space trend and gain exposure to the overall sector. The financial sector has recovered from the 2009 crisis and is finally back on track.
High inflation grapples emerging economies like India and Brazil. India’s consumer prices eased to 3.66% in August—compared to 3.69% in July 2015.
The Matthews China Fund Investor Class (MCHFX) aims to achieve long-term capital appreciation.
The goal of the John Hancock Greater China Opportunities Fund Class A (JCOAX) is to achieve long-term capital appreciation.
The Fidelity China Region Fund Class C (FHKCX) aims to achieve long-term capital growth.
The Clough China Fund Class A (CHNAX) seeks to provide long-term capital appreciation to its investors.
The uncertainty regarding the Chinese economy is increasing investor fears of a global slowdown.
The US Department of the Treasury conducted the weekly auction for four-week Treasury bills, or T-bills, on September 9. The issuance was $35 billion.
The US Department of the Treasury auctioned 13-week Treasury bills worth $22 billion on September 8. It was $2 billion lower than the previous week.
The US Department of the Treasury held the weekly 26-week Treasury bills, or T-bills, auction on September 8. T-bills worth $22 billion were on offer.
The US Department of the Treasury holds monthly auctions for three-year Treasury notes. It attracts a lot of attention from stock and bond market participants.
The US Department of the Treasury conducts an auction for ten-year Treasury notes, or T-notes, once a month. The yield is considered a benchmark in the financial markets.
The monthly auction for 30-year Treasury bonds, or T-bonds, was held on September 10 for $13 billion. It was $3 billion lower than the previous month.
Last week, the supply of Treasury securities rose due to the large issuance of high-grade bonds and China dumping US Treasuries.
Morgan Stanley’s stock has appreciated by 24% CAGR. ETFs are betting on the its business model due to its increased diversification and product offerings.
Morgan Stanley has reduced its balance sheet, risk-weighted assets, and expenses. It secured a two-notch valuation upgrade with Moody’s.
The macroeconomic environment in and outside the US has an impact on the performance of Morgan Stanley’s funds, investment banking, and trading activities.