3 Financial ETFs To Watch As US Bank Earnings Season Kicks Off Friday

Major U.S. banks, including JPMorgan Chase & Co. (NYSE:JPM), Wells Fargo & Co (NYSE:WFC), BlackRock Inc. (NYSE:BLK), Citigroup Inc (NYSE:C), and State Street Corp. (NYSE:STT), are scheduled to release their second-quarter earnings results on Friday, July 14.

Bank Earnings Season Has Begun: What Does the Street Expect?

According to the Street consensus, JPMorgan is projected to report earnings per share (EPS) of $4.00 in the second quarter, representing a significant 45% increase from the previous quarter. The consensus for quarterly revenues stands at $38.96 billion, reflecting a notable 27% surge compared to the first quarter.

Wells Fargo is predicted to post a second-quarter EPS of $1.18, up 55% from the prior quarter. Revenues are expected to climb 18% to $20.1 billion.

BlackRock’s second-quarter consensus EPS is $8.41, up 14.3% from the previous quarter. However, its revenues are expected to drop by 1.3% to $4.47 billion.

The market consensus expects Citigroup’s second-quarter EPS to fall to $1.30, down 40.6% from last quarter. Citigroup revenues are forecasted to drop 1.9% to $19.27 billion.

State Street Corp.’s second-quarter EPS is anticipated to rise 8.76% quarter-on-quarter to $2.11. State Street Corp. expects $3.14 billion in revenues, up 6.44% from the first quarter.

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3 Bank ETFs To Monitor

• Financial Select Sector SPDR Fund (NYSE:XLF)
  Description: A popular exchange-traded fund (ETF) that tracks the performance of the financial sector in the S&P 500 index.
  AUM: $33 billion
  Year-to-date performance: 1.8%
  Top holdings: Berkshire Hathaway Inc. (NYSE:BRK) (NYSE:BRK) (13%), JP Morgan Chase & Co. (9.2%), Visa Inc. (NYSE:V) (8.3%).
  
• Direxion Financial Bull 3x Shares (NYSE:FAS)
  Description: A leveraged ETF that aims to provide three times the daily return of the Russell 1000 Financial Services Index.
  AUM: $1.3 billion
  Year-to-date performance: down by 6.4%
  
• SPDR S&P Bank ETF (NYSE:KBE)
  Description: An ETF that seeks to replicate the performance of the S&P Banks Select Industry Index, providing an exposure to a portfolio of 90 U.S. bank stocks.
  AUM: $1.4 billion
  Year-to-date performance: down by 13.5%
  Top holdings: Comerica Inc. (NYSE:CMA) (1.6%), Pinnacle Financial Partners, Inc. (NASDAQ:PNFP) (1.6%), Wintrust Financial Corp. (NASDAQ:WTFC) (1.4%).

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