As investors grow increasingly bullish on financial stocks, they're flocking to an exchange-traded fund that tracks a specific niche.
The iShares U.S. Broker-Dealers & Securities Exchanges ETF
(IAI) has taken in more than $70 million over the past seven days, including a $20.5 million inflow on March 8, the largest in almost four years. The fund follows an index of investment service providers, securities and commodities exchanges, with a special focus on U.S. broker-dealers.
Over the past week, IAI also has seen a massive amount of activity. On Monday, traders moved over $27.1 million worth of the ETF, compared with average daily turnover of $2.8 million over the past year, according to Bloomberg data. On March 8, more than $35 million changed hands, the largest volume in over five years, the data show.http://edit.investmentnews.com/assets/graphics src="/wp-content/uploads2018/03/CI114648314.PNG"
The possibility of a changing financial regulatory framework has driven a lot of the enthusiasm for the sector. The Senate this week is working to complete consideration of changes to the Dodd-Frank Financial Regulatory Reform Bill that could give some regulatory relief to small and midsized banks.
Oppenheimer & Co. Inc.'s Ari Wald advises buying capital markets and banks and singles out IAI as an attractive opportunity. The fund's largest holding is
Goldman Sachs Group Inc., which comprises over 10% of the portfolio. Others include
Morgan Stanley, at 9.7%, and
Charles Schwab Corp., at 8.9%.
