Bank, Financial ETFs Are Having a Phenomenal Year

Bank stocks and sector-related exchange traded funds are attracting more attention as investors capitalize on areas that benefit from the broad economic recovery. Year-to-date, the Invesco KBW Regional Bank Portfolio (NYSEArca: KBWR)  has advanced 38.9% while the  SPDR S&P Bank ETF (NYSEArca: KBE) increased 33.4%.

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Cyclical Momentum Could Keep Supporting Value

Economically sensitive market segments are taking the lead on the first trading day of May. Economic growth is picking up in most developed countries, and the strong corporate earnings season and positive outlook have also added to the broad market optimism, the  Wall Street Journal reports.

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ETF Investors Are Shifting Out of Growth and Into Value

The ongoing rotation into value stocks has not abated as exchange traded fund investors continue to trim exposure from the growth style. Looking at latest GTS Mischler Financial Group data for the week ended April 5, the  Invesco QQQ Trust (NASDAQ: QQQ) , which tracks the technology heavy Nasdaq-100, suffered $3.7 billion in net outflows, ARK Innovation ETF (NYSEArca: ARKK)  saw $682 million in net outflows, and iShares MSCI EAFE Growth Index (NYSEArca: EFG) experienced $636 million in net outflows.

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Market Sector Strength Update

We have shown similar tables in previous updates, but Canterbury Ranks and Rates securities on a risk-adjusted basis according to our Volatility-Weighted-Relative-Strength (VWRS). It allows all securities to be put on an equal playing field when it comes to measuring relative strength in conjunction with volatility.

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Backed by Biden, A New Infrastructure Bill Will Boost This ETF

The Biden Administration has ambitious infrastructure plans, and that could put funds such as the FlexShares STOXX Global Broad Infrastructure Index Fund (NYSEArca: NFRA) back in focus for investors. NFRA tries to reflect the performance of the STOXX Global Broad Infrastructure Index, which identifies equities that derive the majority of revenue from infrastructure business, providing exposure to both traditional and non-traditional infrastructure sectors.

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