The Financials sector ranks sixth out of the 11 sectors as detailed in our 4Q18 Sector Ratings for ETFs and Mutual Funds report. It gets our Neutral rating.
The Financials sector ranks third out of the 11 sectors as detailed in our 2Q18 Sector Ratings for ETFs and Mutual Funds report. It gets our Neutral rating.
The Financials sector ranks second out of the 11 sectors as detailed in our 1Q18 Sector Ratings for ETFs and Mutual Funds report. It gets our Attractive rating.
There are 25 financial sector ETFs. Per Figure 1, these 25 ETFs have drastically different stock holdings and, therefore, allocations. The lowest number of holdings is 24 while the highest is 496.
For starters, investors interested in the financial sector cannot expect many good investment options given that the sector gets my “dangerous” rating and ranks ninth out of the ten sectors that make up the economy. Details are in our sector roadmap report.
The financial sector is one of four sectors to earn our “dangerous” rating and is the worst-ranked sector in the our 3Q11 Sector Roadmap report according to my methodology at New Constructs.
The consumer staples and information technology sectors are tops among the ten major sectors. Both get our “attractive” rating. Our Sector Roadmap report ranks and rates all of the 10 sectors. It also benchmarks all sectors against the S&P 500, which gets our “neutral” rating and the Russell 2000, which gets our “dangerous” rating.
Citigroup is running out of accounting tricks and the stock will continue its slide as investors recognize the company is not as profitable as it wants investors to believe. Our analysis of the financial footnotes of more than 50,000 annual reports means we know more about which companies have the naughtiest and the nicest accounting. And Citigroup is definitely on the naughty list.
We recommend investors short the KBW Bank ETF (KBE) and avoid or sell all other financial sector ETFs. We also rate the investment merit of the top nine financial sector ETFs.