See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
The PNC Financial Services Group, Inc (PNC) - free report >>
We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The PNC Financial Services Group, Inc (PNC) - free report >>
Image: Bigstock
Bank ETF (IAT) Hits New 52-Week High
For investors seeking momentum, iShares U.S. Regional Banks ETF (IAT - Free Report) is probably on radar now. The fund just hit a 52-week high, and is up about 38% from its 52-week low price of $28.12/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:
IAT in Focus
This ETF offers exposure to small and mid-size U.S. banks with heavy concentration on the top two firms U.S. Bancorp (USB - Free Report) and PNC Financial Services (PNC - Free Report) at 16.8% and 11%, respectively, while other firms hold no more than 7.36% share. While regional banks make up for a substantial portion, diversified banks make up for about 19% share in the basket. The fund charges investors 44 basis points a year in fees (see: all the Financial ETFs here).
Why the Move?
The banking corner of the financial space has been an area to watch lately especially after the surprising victory of Trump in the U.S. presidential election. This is because Trump policies of tamer regulatory environment and lower taxes for hedge fund and private equity managers are incredibly favorable for bankers, giving a boost to the sector.
More Gains Ahead?
Currently, IAT has a Zacks ETF Rank of 3 or ‘Hold’ rating with a High risk outlook, so it is hard to get a handle on its future returns one way or the other. However, many of the segments that make up this ETF have a strong Zacks Industry Rank, so there is definitely still some promise for those who want to ride on this surging ETF a little longer.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>