Investors have withdrawn $913.4 million from the $17.5 billion ETF. ETF’s top holding includes JPMorgan Chase & Co. (JPM), Berkshire Hathaway Inc. and Wells Fargo & Co. It is a shift that has turned the flow of money towards the negative for the year. According to latest exchange data compiled by Bloomberg143 million shares of the ETF have been borrowed and sold to speculate on declines, and this the most since June 2012.
Banks have been waiting to hike rates and a more robust trading to increase revenue from both lending and market making. US central banks could be forced to lower the pace of increasing interest rates on the face of Weaker-than-expected global growth.
Market swings have been unpredictable and severe this month thereby increasing the risks of incurring losses by the banks while facilitating client bets. It could also slow the pace of mergers and acquisitions.
Todd Rosenbluth, director of mutual-fund and ETF research at S&P Capital IQ in New York, referring to interest rates said, “Investors should have less exposure to financials than the broader market because we don’t think the prospects are that strong.”cialis for sale in usa