Last week, the SPDR S&P 500 ETF Trust (SPY) was the biggest winner with inflows worth $4.63 billion.
Overall trading revenues for the top ten global investment banks have fallen more than one-third since reaching its peak of $166 billion in 2009.
US financial stocks hold a lot of promise going into 2018 due to strong economic growth and the expected rise in interest rates.
Last week, the real stars were smart beta ETFs that saw strong inflows after many weeks. MTUM and USMV added $847.5 million and $829 million.
According to an analysis by FT, in the past nine months, the big six banks’ (JPM) (GS) trading assets rose by more than $170 billion.
Stronger economic growth, expectations of another rise in the interest rates, and lower regulatory barriers on the horizon are boosting financial stocks.
According to Lipper data, US-based stock ETFs (exchange-traded funds) saw inflows worth $9.4 billion last week even as the markets (SPY) continued to see record highs.
According to the FDIC (Federal Deposit Insurance Corporation), the proportion of long-term fixed-rate lending by US banks (C) (JPM) has risen in the past few years.
Financial stocks edged higher last week. Citibank (C), Morgan Stanley (MS), and J.P. Morgan (JPM) rose 0.97%, 0.74%, and 0.18%, respectively.
ETFs saw another week of record inflows even though the markets fell slightly for the second consecutive week. ETFs added $5.4 billion last week.