5d 1m 3m 1y 5y 10y
There are no Transcripts on RYF.
RYF vs. ETF Alternatives
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
See more details on sponsor's website
Wednesday, Sep 112013, 7:46 AM
Wednesday, Sep 112013, 7:46 AM| 9 Comments
- The 13.5% plunge in mortgage applications last week was adjusted to reflect the Labor Day holiday.
- The Refinance Index dove 20%, now off 71% from the May peak, and at the lowest level since June 2009. The Purchase Index dipped 3%.
- The average contract rate for a 30-year fixed mortgage rose 7 bps to 4.80%, with points increasing to 0.46 from 0.33.
- Amid numerous investor presentations by the banks this week, nearly all have warned about ugly Q3 mortgage production (and gain on sale) numbers coming up. Regional players like MTB, BBT, ZION, HBAN, as well as larger names like WFC and JPM will take note.
- ETFs of note: XLF, IYF, PFI, VFH, RYF, RWW, FAS, UYG, FAZ, SKF, SEF, IAI, FXO, PSCF, KBWD, KBWB, IYG, FINU, FINZ, KBE.
Tuesday, Sep 102013, 3:38 PM
Tuesday, Sep 102013, 3:38 PM| 1 Comment
- U.S. Bancorp (USB +1%) is among those making significant accounting changes - moving bonds from the "available-for-sale" bin into "held-to-maturity." The move gives lenders near-term capital relief, but forces them to hold onto the paper no matter what.
- U.S. Bancorp's held-to-maturity portfolio ballooned to $34.7B or 46% of its investment portfolio in Q2, up from just $1.5B in 2010. The bank did it to cope with new capital regulations, but is now stuck with billions in low-yielding assets as rates begin to rise - the weighted-average yield on the held-to-maturity portfolio is just 1.89% compared to 2.72% in the available-for-sale portfolio.
- Texas bank Cullen Frost (CFR +0.2%) was forced to do likewise as regulators seemed "incapable" of removing a requirement to subtract paper losses on securities from capital ratios, according to the bank finance chief. "That was absolutely ridiculous for a bank like ours," which never had any funding issues, says CIO Bill Sirakos.
- The bottom line: The banks made their arrangements with the federales a long time ago. They're just going to have to deal with it.
- Financial ETFs: XLF, IYF, PFI, VFH, RYF, RWW, FAS, UYG, FAZ, SKF, SEF, IAI, FXO, PSCF, KBWD, KBWB, IYG, FINU, FINZ, KBE.
Monday, Sep 92013, 12:23 PM
Monday, Sep 92013, 12:23 PM| 2 Comments
- Bullish on the economy, Goldman's David Kostin says investors should favor those firms with high fixed costs as they'll benefit most from margin expansion. This leads him to pick industrials (XLI) and financials (XLF) as his favorite sectors.
- Industrials ETFs: FXR, IYJ, PRN, XLI, VIS, RGI, PSCI, UXI, SIJ.
- Financials ETFs: XLF, IYF, PFI, VFH, RYF, RWW, FAS, UYG, FAZ, SKF, SEF, IAI, FXO, PSCF, KBWD, KBWB, IYG, FINU, FINZ.
- Goldman's got a basket of 50 names set to benefit most from stronger GDP growth. Included are ANF, WFM, APC, R, X. More names as we get them.
Friday, Sep 62013, 12:13 PM
Friday, Sep 62013, 12:13 PM| 2 Comments
- "The probability of it happening again in our lifetime is as close to zero as I could imagine," Morgan Stanley (MS +0.8%) CEO James Gorman tells Charlie Rose in what hopefully won't be added to the list of ill-timed boners from captains of industry.
- He cites different management at financial firms, higher capital ratios, and changes int he business mix - "it's dramatic." Among Morgan Stanley's own steps is the purchase of Smith Barney from Citigroup in the hope of a steady stream of fee business.
- "The largest financial institutions in the U.S. are as healthy now as they have ever been."
- Financial ETFs: XLF, IYF, PFI, VFH, RYF, RWW, FAS, UYG, FAZ, SKF, SEF, IAI, FXO, PSCF, KBWD, KBWB, IYG, FINU, FINZ.
Monday, Aug 192013, 11:17 AM
Monday, Aug 192013, 11:17 AM| Comment!
- A new round of Fed stress tests found all 18 participating banks need to improve their capital planning.
- The 2014 CCAR process - in which banks will submit their capital return plans for Fed approval - begins this fall. In addition to last year's 18 participants will be another 12 firms with at least $50B in assets.
- Source: Press release.
- Full study.
- Related ETFs: KBE, XLF, IYF, PFI, VFH, RYF, RWW, FAS, UYG, FAZ, SKF, SEF, IAI, FXO, PSCF, KBWD, KBWB, IYG, FINU, FINZ.
Friday, Aug 162013, 11:37 AM
Friday, Aug 162013, 11:37 AM| Comment!
- The Fed approves a final rule requiring 70 financial companies to pony up $440M annually for the cost of expanded central bank supervision.
- The Dodd-Frank act not only mandated new regulatory oversight of banks, it required the banks to pay for the expansion. The assessment applies only to those companies with more than $50B in assets.
- Relevant ETFs: XLF, IYF, PFI, VFH, RYF, RWW, FAS, UYG, FAZ, SKF, SEF, IAI, FXO, PSCF, KBWD, KBWB, IYG, FINU, FINZ.
Tuesday, Jul 22013, 12:28 PMBanks with a heavy reliance on mortgage originations catch a break with new capital rules approved by the Fed today. The central bank decided not to increase risk-weightings for mortgages, citing new underwriting rules as well as other pending rules as the reasons. Small banks also get good news as any trust preferreds issued prior to 2010 are grandfathered in as acceptable capital. |Tuesday, Jul 22013, 12:28 PM| 2 Comments
Tuesday, Jun 252013, 11:58 AMLooking for relative strength? With the S&P 500 off nearly 5% since May's end and the big-cap focused Financial Sector SPDR (XLF) down 5%, the Regional Banking ETF (KRE) is about flat as higher rates hold the promise of better margins. Within the KRE, those stocks looking the best technically to Frank Zorilla are ASBC, BBT, MTB, HBAN, HOMB, RF, ZION. |Tuesday, Jun 252013, 11:58 AM| 4 Comments
Tuesday, Jun 182013, 3:04 PMRising interest rates should be good for bank (XLF) income statements, but maybe bad for bank balance sheets, opines Fitch. Higher long rates mean wider margins which is good for earnings, but securities backing bank capital levels have large unrealized gains attached - gains which could disappear and turn into losses as rates rise. Basel III rules, of course, have yet to be finalized so the ultimate impact is not yet clear. |Tuesday, Jun 182013, 3:04 PM| Comment!
Monday, Jun 172013, 8:26 AM"Higher rates without meaningful economic growth are bad for banks (XLF), says FBR's Paul Miller, making a counterpoint to last week's line of bank executives welcoming the recent increase in interest rates. KBW's Chris Mutascio is also skeptical, noting short-term rates driving loan pricing could stay flat while assets pegged to long-term yields lose value. |Monday, Jun 172013, 8:26 AM| Comment!
Friday, May 312013, 3:21 PMLarge-cap banks are poised for multiple expansion, says Sterne Agee, as discussions with managements along with data points from recent investor presentations suggest business in Q2 is doing better than expectations. The team is recommending a basket of C, JPM, MS, and GS. In a similar vein, they like a basket of "discounted regionals" - PNC, MTB, RF, USB, and STI. |Friday, May 312013, 3:21 PM| Comment!
Thursday, May 302013, 11:36 AM"The smartest people in banking want to be bankers again," says Cramer, pointing to the recent IPO of Customers Bancorp (CUBI), led by CEO Jay Sidhu. Sidhu previously built Sovereign Bank into one of the country's largest before flipping it to Santander. He says financials (XLF +1%) are the market's most undervalued group and set to "make fortunes" as long rates head up. Deep-value investor Richard Pzena agrees. |Thursday, May 302013, 11:36 AM| Comment!
Tuesday, May 282013, 11:06 AMCan't make this stuff up. Moody's upgrades its outlook on the U.S. banking system (XLF) to Stable from Negative, citing "continued improvement in the operating environment and reduced downside risks to the banks from a faltering economy." The outlook had been Negative since 2008. |Tuesday, May 282013, 11:06 AM| 3 Comments
Tuesday, May 212013, 8:49 AMExponential rapidly rising or falling markets usually go further than you think, but they do not correct by going sideways," is #4 of Bob Farrell's "Market Rules to Remember." Channeling that, BAML's Steve Suttmeier sees stocks continuing their run with risks of a topping-out not arriving unti late summer. He's most bullish on industrials (XLI) - particularly "oversold" EXPD, DE, CAT, FDX - and also thinks financials (XLF) will remain market leaders. |Tuesday, May 212013, 8:49 AM| 4 Comments
Friday, May 172013, 5:56 AMUBS upgrades global financials to Overweight from Underweight on a healing global economy, rebuilt capital, and the sector's shift "from being a net issuer to a net distributor of cash." Furthermore, the U.S. banking sector (XLF) is taken to Overweight as balance sheet strength and attractive valuations play well with the housing market recovery to create compelling opportunities. European banks (EUFN) are lifted to Neutral "with a preference towards Nordic and U.K. banks." Financials respond in London with LLoyds Banking Group (LYG) +2.3%, Royal Bank of Scotland (RBS) +3.3%, and Barclays (BCS) up 0.5%. |Friday, May 172013, 5:56 AM| 7 Comments
Wednesday, May 152013, 7:54 AM"You're getting cost cuts as a means of sustaining performance and that's not a great sign," says analyst Simon Maughan. "What HSBC (HBC) is showing you (job cuts earlier) is that there is very little growth in the banking industry (XLF) for years to come." CEO Stuart Gulliver notes HSBC has met its savings target, but hasn't met a goal to reduce costs as a percentage of revenue because revenue hasn't grown. |Wednesday, May 152013, 7:54 AM| 1 Comment