Our selection of ETFs exposed to regional and local banks, with a client base of small businesses and families, is likely to reflect trend reversals in the economy quickly and very directly
By canceling business investments or the projected acquisition of costly consumer durables when exposed to economic headwinds, the client base will affect credit growth and shrink deposits
It is understood that a monetary context of rising rates may create more profitable lending opportunities for the banks but, lacking diversified revenue streams, as usual at large institutions, regional and local banks remain directly exposed
Because the weighting of smaller banks in the ETFs varies greatly, fund performance and volatility ratios must be interpreted with caution
Though our theme may only deliver mixed signals as a whole, each individual fund will provide information on regional sensitivity to global US economic trends
We do not receive any commission or other form of compensation from the providers included in our 'Funds' presentation
