Major exchange-traded funds that track the financial sector fell on Friday, following a trio of bank results that pointed to weak trends in trading revenue.
The Financial Select Sector SPDR ETF
fell 1.3%, its biggest one day drop in nearly two months. More than 14 million shares exchanged hands in the first minutes of trading, putting it on track to eclipse its 30-day average of 73 million shares.
J.P. Morgan Chase & Co.
JPM, -0.91%Citigroup Inc.
and Wells Fargo & Co.WFC, -1.10%
all posted results on Friday, and while they beat profit expectations, the three also reported weaker trading revenue, something analysts had hoped to see improvement on.
Shares of J.P. Morgan fell 2.6% while Citigroup lost 1.6% and Wells shed 2.4%. All three companies are among the top five holdings of the financial ETF, one of the most popular ways for investors to trade the overall sector. Together, the three account for about 25% of the portfolio.
With the day’s move, the S&P Bank ETF turned negative for the year. The regional bank fund is down 1.6% for 2017.
The Financial Select Sector SPDR ETF remains up by 6.4% thus far this year.