SPDR® S&P Regional Banking ETF
Latest SPDR® S&P Regional Banking ETF News and Updates

How Stocks and Bonds Reacted to Trump’s Victory
The CBOE Volatility Index suddenly rose 6.0% on November 9, 2016, after it was clear that Trump had unexpectedly clinched the election.

PMI Index: Component Growth Impacts Banks
A growing economy definitely benefits the banking sector. The impact will be positive for big banks and also for regional banks.

Why Dividend Stocks Have Underperformed This Year
Dividend stocks have underperformed this year so far. The dividend yield measures dividends payed by a company in the last 12 months relative to its share price.
Financial intermediation, systemic risks, and “too big to fail”
When financial intermediaries allocate funds, they assess the risks and returns that come from various risky claims. Intermediaries help allocate resources and risks throughout the economy. Financial intermediation can result in concentrated risks. The risks increase the financial system’s fragile state. These risks are called systemic risks.

The KRE ETF Is Trending Downward since December 28
The SPDR S&P Regional Banking ETF (KRE) targets US regional banks. It seeks to track the performance of the S&P Regional Banks Select Industry Index.
Why the yield curve impacts bank profitability
Historically, a flatter yield curve had an adverse impact on the financial institutions’ returns. It lowered their net interest margins. The Fed continues to stress an accommodative monetary policy. The policy and strong overseas demand have kept yields low at the long end of the curve. As a result, the difference between 30-year and five-year Treasury yields fell to 154 basis points on September 5, 2014.
Why the banking sector is better, but with room for improvement
Russ explains the good news behind his upgrade of the global financial sector as well as the bad news keeping his sector outlook somewhat subdued.

How Fifth Third Bancorp Has Performed Recently
Fifth Third Bancorp has an impressive free cash flow position.

Welltower’s Dividend Yield Falls despite Higher Dividend
Revenue and earnings In this part, we’ll look at Welltower (HCN), a US healthcare REIT. Welltower’s revenue growth slowed from 15% in 2015 to 11% in 2016. The growth was driven by all of its segments, through rental income, resident fees and services, interest income, and other income. Its operating costs and other expenses (including interest expenses) […]

Why Are So Many Americans Quitting Their Jobs?
As per the latest JOLTS report, about 3.2 million Americans quit their jobs voluntarily last month. This is an increase of 0.1 million from the previous month.

How the Removal of Dodd-Frank Could Affect Banks
While the Dodd-Frank Act was passed to avoid another financial crisis, it has crippled banks’ profitabilities over the years due to higher capital requirements.

Does Dodd-Frank Act Need to Be Changed?
Barack Obama signed the Dodd-Frank Act into federal law in 2010.

Analyzing How the Yield Curve Impacts Small Caps
Another factor that impacts small-cap stocks’ performance is the yield curve. The yield curve has remained on the flatter side since the recession.

Why Financials Have Soared since Trump’s Election
The dismantling of Dodd-Frank regulations for banks should improve their profitabilities, which explains why their stocks have soared since Trump’s win.

Which S&P 500 Sectors Do the Best for an Incumbent Democrat?
The S&P 500 returns for a second-term president have been somewhat better than a first-term president, which is one reason for the incumbency factor.

Could the Rise in Retail Sales and CPI Impact Portfolios?
The United States Census Bureau published the US retail sales report for June on July 15. Retail sales rose 0.6% in June on a month-over-month basis.

GICS Sector ETFs: Investors Run for the Exits!
During last week’s volatile trading session, investors pulled money out of all but two US GICS Sector ETFs. All of the sectors closed in negative territory.

What Can You Expect from Markets in 2016?
While I don’t have a crystal ball, here are three things I believe all investors need to know about returns in 2016.

Why Demand for Electric Vehicles Could Soar
Q. Tell us more about your outlook for electric vehicles.

How Zero-Bound Money Restricts Credit Growth
Credit growth has started to slow in the Us. From the 12% annualized growth rate of commercial and industrial credit in 2014, the rate is currently around 10.8%.

Midsize Banks Need a Breather from Excessive Regulations
Banks have seen compliance costs rise since the Dodd-Frank Act regulations took effect. For small banks, it’s been harder to absorb these costs.

Banks Set to Profit from Steepening Yield Curve
The yield curve has steepened a bit compared to where it was a week or even a month ago. Investors should consider the yield curve slope an indicator of bank performance.

Why Does a Flattened Yield Curve Hurt Banks?
Banks benefit from a steeper yield curve, which allows banks to lend on higher long-term rates and borrow on lower short-term rates. This boosts banks’ margins.

Revenue Diversification: A Key Priority for Regions Financial
During 1Q15, Regions Financial (RF) repurchased $102 million of common stock—completing its $350 million 2014 repurchase program.

SunTrust Bank’s Deposit Growth Lower than Industry Average
STI’s deposit growth is clearly lagging behind the industry average. Other banks are experiencing strong growth in this area.

BB&T’s Relative Valuation Is close to the Industry Average
BB&T’s loan and deposit growth is marginally below the industry average. Its ROE and price-to-book ratio are close to the peer average.

Why BB&T Has Low Funding Costs Compared to Its Peers
Deposits are the cheapest funding source. Since deposits fund a major chunk of BB&T’s assets, the overall funding costs are low.

SunTrust: A Leading Bank in the Southeast
SunTrust provides a broad range of consumer and wholesale banking, mortgage banking, and private wealth management services.

Is SunTrust Bank’s Stock Undervalued?
SunTrust Bank’s return on equity is 8%, which is 18% lower than the industry average.

Why SunTrust Has Lower Net Interest Margins
SunTrust Bank’s net interest income in 2014 remained stable compared to 2013 as strong loan growth offset the decline in net interest margin.

Commercial Loans Drive SunTrust’s Wholesale Banking Growth
The Wholesale Banking segment’s net interest income increased in 2014 compared to 2013.

SunTrust Bank Has a Lower Dividend Yield
SunTrust Bank (STI) paid common dividends totaling $371 million or $0.70 per share in 2014.

BB&T Offers a Higher Dividend Yield Compared to Its Peers
Dividend yield is a company’s annual dividend per share. It’s expressed as a percentage of its share price. Dividend yields are important if you want a regular stream of income.

BB&T Focuses on Expanding Corporate Banking Services
BB&T is focused on expanding its corporate banking services. It’s adding new industry verticals for lending and investment banking services.

BB&T Corporation Is a Leading Bank in the Southeast Region
BB&T Corporation (BBT) is a financial holding company. It conducts its operations primarily through its bank subsidiary—Branch Bank.

Regions Financial has low earnings and dividend growth
Earnings are growing, but at a slow pace. Regions Financial’s (RF) net income increased by 1% in 2014—compared to 2013.

Why inorganic growth works for Regions Financial
A substantial portion of Regions Financial’s growth has been through the acquisition of other financial institutions. The bank was formed in 1971.