Guggenheim S&P Equal Weight Financial ETF (RYF) - NYSEARCA
  • Thu, Jun. 30, 10:51 AM
    • Dividend increases and boosted buybacks must already have been priced into the shares of the big banks, as share prices are showing little reaction to last night's capital plans.
    • Citigroup (C -0.6%) is notably lower despite announcing more than a tripling in the dividend. Bank of America (BAC -0.8%) was more cautious with its payout boost, but is faring about the same. JPMorgan (JPM unch) chose not to lift its dividend, but did raise the buyback. Morgan Stanley (MS +0.6%) lifted both. Wells Fargo (WFC -0.5%) didn't give details other than saying its capital plan was approved; same for Goldman Sachs (GS +0.1%).
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, BTO, IYG, FNCL, SEF, FXO, RYF, FINU, RWW, XLFS, FINZ, JHMF, FAZZ, FNCF, KBE
    | Thu, Jun. 30, 10:51 AM | 23 Comments
  • Wed, Jun. 29, 3:13 AM
    • The Fed will tell 33 of the nation's largest banks today whether they fully passed or failed their annual stress tests.
    • Traders are closely watching the CCAR reports to see whether lenders can afford their planned dividends and buybacks, and if Wall Street has enough capital to survive another financial crisis.
    • U.S. units of Deutsche Bank (NYSE:DB) and Banco Santander (NYSE:SAN) were the only firms to fail the tests in 2015.
    • Previously: All 33 banks pass this year's stress tests (Jun. 23 2016)
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, BTO, IYG, FNCL, SEF, FXO, RYF, FINU, RWW, XLFS, FINZ, JHMF, FAZZ, FNCF
    | Wed, Jun. 29, 3:13 AM | 8 Comments
  • Mon, Jun. 27, 6:55 AM
    | Mon, Jun. 27, 6:55 AM | 62 Comments
  • Fri, Jun. 24, 5:22 AM
    | Fri, Jun. 24, 5:22 AM | 129 Comments
  • Thu, Jun. 23, 4:38 PM
    • Stress tests on 33 U.S. bank holding companies finds the lenders could weather $526B in losses in the Fed's severely adverse scenario, which includes a major global recession, a sharp rise in unemployment, heightened financial stress, and even negative Treasury yields.
    • The aggregate CET1 ratio would fall from an actual 12.3% in Q4 of 2015 to 8.4% in Q1 of 2018 under the severely adverse scenario.
    • The results of the CCAR - banks' capital return plans - are due in one week.
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, BTO, IYG, FNCL, SEF, FXO, RYF, FINU, RWW, XLFS, FINZ, JHMF, FAZZ, FNCFa
    | Thu, Jun. 23, 4:38 PM | 67 Comments
  • Mon, Jun. 20, 3:17 PM
    • The deluge is set to start 30 minutes after the market closes on Thursday and will have to compete with Brexit exit polls for breathless news coverage.
    • As for the lenders, the Fed will first release the results from the annual stress tests and minute later the banks will disclose how they graded themselves. The results of the CCAR - at which banks' requests for capital returns will or won't be greenlighted - will come in one week later.
    • Investors will want to know if the Fed - feeling more comfortable with capital levels - will continue the trend of allowing gradual increases in payouts - they were at 75% of profits last year, and some are hoping for an increase to 80% this year.
    • Of course, even "A" grades on stress tests would likely more than counterbalanced by a "leave" vote coming from the U.K. If this weekend's polls are any indication, a decision to leave is looking less and less likely.
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, BTO, IYG, FNCL, SEF, FXO, RYF, FINU, RWW, XLFS, FINZ, JHMF, FAZZ, FNCF, KBE, KRE
    | Mon, Jun. 20, 3:17 PM | 11 Comments
  • Tue, Jun. 14, 3:48 PM
    • The S&P 500 is down just 0.25%, but the financial sector (XLF -1.5%) is taking a far larger beating as the idea of higher interest rates fades, with German 10-year yields falling below zero, and the U.S. 10-year Treasury yield within sight of its all-time low. KBE -2.3%, KRE -2.3%
    • The FOMC concludes its two-day policy meeting tomorrow, at which updated economic projections and dots will be unveiled, along with a Janet Yellen press conference.
    • How much of the panic into fixed-income is due to concern about the U.K. exiting the EU will become evident next Thursday night as that country's Brexit votes are tallied.
    • Bank of America (BAC -2.5%), Citigroup (C -3.1%), Wells Fargo (WFC -2.5%), Regions Financial (RF -2.9%), KeyCorp (KEY -3.7%), PNC Financial (PNC -2.4%), Fifth Third (FITB -2.6%), SunTrust (STI -2.8%), E*Trade (ETFC -2.6%), MetLife (MET -1.6%), Prudential (PRU -1.8%), BNY Mellon (BK -2%)
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, BTO, IYG, FNCL, SEF, FXO, RYF, FINU, RWW, XLFS, FINZ, JHMF, FAZZ, FNCF
    | Tue, Jun. 14, 3:48 PM | 89 Comments
  • Fri, Jun. 3, 9:47 AM
    • At the moment, it's looking like "wait till next year," for the higher interest rates much of the yield-starved financial sector has been waiting for. This morning's disappointing jobs numbers has traders quickly reversing bets on a rate hike this summer.
    • Meanwhile, the 10-year Treasury yield has crumbled to a two-month low of 1.70%.
    • The XLF is down 1.9%, leading the S&P 500's 0.5% decline. The SPDR KBW Bank ETF (KBE -3.5%), the SPDR Regional Banking ETF (KRE -3.4%).
    • Among the Too Big To Fail names, Bank of America (BAC -4.7%) and Citigroup (C -4.8%) are hardest hit. In regionals, Regions Financial (RF -4.4%), KeyCorp (KEY -4%), BB&T (BBT -3.3%), Fifth Third (FITB -4.4%).
    • State Street (STT -3.5%), Northern Trust (NTRS -3.8%), Schwab (SCHW -5.4%), E*Trade (ETFC -5.8%), Ameritrade (AMTD -5.5%), MetLife (MET -3.6%), Prudential (PRU -3.2%), Lincoln Financial (LNC -4.1%)
    • ETFs: XLF, FAS, FAZ, KRE, UYG, VFH, KBE, IYF, BTO, IAT, IYG, FNCL, SEF, FXO, KBWB, QABA, KBWR, RYF, FINU, KRU, RWW, XLFS, FINZ, KRS, JHMF, WDRW, FAZZ, DPST, FNCF
    | Fri, Jun. 3, 9:47 AM | 140 Comments
  • Wed, Jun. 1, 8:35 AM
    • "Transformational" cost savings in which investment banks cut their way to earning their cost of capital is a "pipe dream," says Boston Consulting Group, with just a handful having a chance of success.
    • Bankers dream about merging swaths of back-office and mid-office functions into a "industry utility," but the dreams are just that thanks to governance issues, says BCG.
    • But what about the blockchain? Still in its infancy, says BCG, "and cannot be counted on for an imminent solution to realize efficiencies."
    • Source: FT
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, BTO, IAI, IYG, FNCL, SEF, FXO, RYF, KCE, FINU, RWW, XLFS, FINZ, JHMF, FAZZ, FNCF
    | Wed, Jun. 1, 8:35 AM
  • Tue, May 31, 10:43 AM
    • "The regulatory environment is completely different than it was five years ago,” says M&T Bank (NYSE:MTB) Chief Compliance Officer Greg Imm. "You can accept it and move on, or fight it and lose."
    • The 2010 Dodd-Frank law has more than 22K pages of rules on matters ranging from bank capital to how lenders may advertise. Alongside those rules are thousands of regulators set out to watch banks, and tens of thousands of new staff hired by banks to keep those regulators happy.
    • That sort of stuff adds up, and the six largest U.S. banks in 2013 spent $70.2B on compliance, double the amount in 2007 ... and costs have mounted since.
    • "The dynamic can be maddening for all sides, with regulators, internal compliance executives and employees operating like rival tribes," write Kirsten Grind and Emily Glazer in the WSJ.
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, BTO, IYG, FNCL, SEF, FXO, RYF, FINU, RWW, XLFS, FINZ, JHMF, FAZZ, FNCF
    | Tue, May 31, 10:43 AM | 10 Comments
  • Wed, May 25, 2:51 PM
    • In news that will shock very few, a study from the Treasury's Office of Financial Research finds the banks' so-called living wills required by the Dodd-Frank law can't do the job they were designed for - that is provide a blueprint for winding down the operations of a distressed major bank without causing tumult in the rest of the financial system.
    • Drawing on just the public portions of the living wills, the study says bank holding companies have not reduced either their complexity or their interconnectedness. Who could've thunk it?
    • Full study
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, BTO, IYG, FNCL, SEF, FXO, RYF, FINU, RWW, XLFS, FINZ, FAZZ
    | Wed, May 25, 2:51 PM | 1 Comment
  • Fri, May 20, 12:11 PM
    • "The days of negative provisioning are pretty much dead," says D.A. Davidson's Kevin Reevey. "Now, they're going to have to take provisioning expense and build up reserves based on loan growth."
    • Total bank loan loss reserves were north of $250B in Q1 2010, before falling to about $24B at the end of last year. Amid the energy crash, they edged higher in Q1. Naturally, those lenders with the most exposure to energy posted some of the largest reserve increases in Q1. "It wasn't just the levels that [oil] went to, it was the speed at which prices dropped," says Peter Guilfoile, chief credit officer at one of those banks - Comerica (NYSE:CMA). Colorado-based National Bank Holdings (NYSE:NBHC) posted the largest Q/Q increase in reserves-to-loans, jumping 39 basis points to 1.43%.
    • Meanwhile, there were plenty of other banks which actually saw declines in that ratio, notably Bank of America (NYSE:BAC), Wells Fargo (NYSE:WFC), and U.S. Bancorp (NYSE:USB). These and other lenders in that bucket can thank denominator of that ratio growing quickly enough to offset reserve builds.
    • Source: SNL Financial's Zach Fox and Venkatesh Iyer
    • ETFs: XLF, FAS, FAZ, KRE, UYG, VFH, KBE, IYF, BTO, IAT, IYG, FNCL, SEF, FXO, KBWB, QABA, KBWR, RYF, FINU, KRU, RWW, XLFS, FINZ, KRS, WDRW, DPST, FAZZ
    | Fri, May 20, 12:11 PM | 15 Comments
  • Fri, May 13, 12:43 PM
    • Financials are already laggards, having shed more than 3% this year - the third-worst performance of the ten S&P 500 sectors - versus the broader market's 1% gain. And that's with the contribution of REITs, which are higher by 6.7%.
    • Come September, though, real estate stocks are set to be split off from financials in the first S&P 500 sector lineup change since the current one's introduction in 1999.
    • Investors have pulled about $4.8B from mutual funds and ETFs focused on financials this year - how much might they have pulled, and how much will they pull once the popular REITs have their own home?
    • State Street Global Advisors late last year launched a special real-estate sector ETF (NYSEARCA:XLRE), and it's higher by 4.2% this year versus the Financial Select SPDR's (NYSEARCA:XLF2.8% loss.
    • "We're going to follow the changes in the benchmark," says Vanguard, but iShares' U.S. Financials ETF (NYSEARCA:IYF) follows a different index (it's off 1.7% this year), so will be unaffected by the change.
    • Source: WSJ
    • ETFs: XLF, VNQ, IYR, FAS, FAZ, UYG, VFH, DRN, RQI, URE, SCHH, ICF, RWR, SRS, RNP, IYF, RFI, JRS, BTO, KBWY, NRO, DRV, RIT, IYG, FNCL, SEF, FXO, RIF, REK, DRA, FRI, RYF, FINU, FTY, RWW, FREL, LRET, PSR, XLFS, WREI, FINZ, XLRE, IARAX, FAZZ
    | Fri, May 13, 12:43 PM | 12 Comments
  • Thu, May 12, 5:40 AM
    • While 2015 was a record-breaking year for M&A, 2016 so far will go down as what could have been. Nearly $400B of deals - most recently the Staples/Office Depot merger - have fallen apart so far this year, according to Dealogic, whether thanks to regulators, rocky markets, or reluctant targets. Even if no other deals fall through for the rest of the year, that amount would still be a record.
    • It's bad news for banks - particularly as business continues to slow in areas like trading. Also, advisors typically only pocket most of their money when deals close, meaning there's been a lot work for naught this year.
    • The breakups of just the Pfizer/Allergan, Halliburton/Baker Hughes, and Staples/Office Depot deals cost banks more than $300B in advisory fees (and potentially much more than that).
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, BTO, IAI, IYG, FNCL, SEF, FXO, RYF, KCE, FINU, RWW, XLFS, FINZ, FAZZ
    | Thu, May 12, 5:40 AM | 6 Comments
  • Thu, May 5, 10:20 AM
    • Mandatory arbitration clauses are the norm across products like credit cards, student loans, prepaid cards, and payday loans, and they're used by lenders to block class-action suits and force private negotiations to settle disputes.
    • The proposal which would prohibit such moves by banks is expected to take effect next year unless the up-in-arms bank lobby can stop it.
    • "Signing up for a credit card or opening a bank account can often mean signing away your right to take the company to court if things go wrong,” says CFPB boss Richard Cordray.
    • ETFs: XLF, FAS, FAZ, KRE, UYG, VFH, KBE, IYF, BTO, IAT, IYG, FNCL, SEF, FXO, KBWB, QABA, KBWR, RYF, FINU, KRU, RWW, XLFS, FINZ, KRS, FAZZ
    | Thu, May 5, 10:20 AM | 1 Comment
  • Thu, Apr. 21, 12:13 PM
    • Years after Dodd-Frank passed, regulators still haven't agreed on an oversight plan for the country's too big to fail banks. A proposal put out for public comment today from the National Credit Union Administration would force top management to wait at least four years before collecting most bonus pay, and would allow for clawbacks (up to seven years later) in the event of future losses.
    • The NCUA is one of six agencies that would have to adopt the rule.
    • The thinking behind this sort of proposal are skewed pre-crisis incentives in which managers were in a "heads I win, tails I don't lose" situation, and thus had no qualms about taking on excessive risk.
    • This new proposal is significantly tougher than a version in 2011 which was scrapped after much criticism.
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, BTO, IAI, IYG, FNCL, SEF, FXO, RYF, KCE, FINU, RWW, XLFS, FINZ, FAZZ
    | Thu, Apr. 21, 12:13 PM | 8 Comments
RYF Description
Seeks to replicate as closely as possible, before expenses, the performance of the S&P Equal Weight Index Financials.
See more details on sponsor's website
Sector: Financial
Country: United States
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