Bank ETFs Rake In $1.7 Billion After Fed Revives Value Rotation
- KRE lures record $932 million amid central bank’s hawkish tilt
- Financials are a ‘natural place’ to go if rates rise: Phillips
This article is for subscribers only.
A surprisingly hawkish Federal Reserve sent a wave of cash into financial exchange-traded funds, which stand to benefit from rising interest rates.
Investors poured roughly $1.7 billion into bank ETFs on Wednesday, with State Street’s SPDR S&P Regional Banking (ticker KRE) notching a record inflow of $932 million, according to data compiled by Bloomberg. The $4 billion SPDR S&P Bank ETF (ticker KBE) had its biggest intake since March, while the $44 billion Financial Select Sector SPDR Fund (ticker XLF) lured the most cash in a month.