ETFs To Benefit Or Lose From Rising Yields

Given this, we have highlighted three ETFs that will benefit from higher yields and the ones, which will badly impacted.

ETFs to Benefit

SPDR S&P Regional Banking ETF (KRE - Free Report)

This is one of largest and the most popular ETFs in the banking space with AUM of $4.9 billion and average daily volume of 6.7 million shares. The product follows the S&P Regional Banks Select Industry Index, charging investors 35 basis points a year in fees. Holding 120 securities in its basket, the fund is widely spread out across each security with an equal-weight approach of around 2%. The fund has gained about 1.8% over the past week and carries a Zacks ETF Rank #1 (Strong Buy) with a High-risk outlook.

Consumer Discretionary Select Sector SPDR Fund (XLY - Free Report)

This product offers exposure to the broad consumer discretionary space by tracking the Consumer Discretionary Select Sector Index. It is the largest and the most popular product in this space with AUM of $13.2 billion and average daily volume of around 5.8 million shares. Holding 82 securities in its basket, the fund is heavily concentrated on the top firm Amazon (AMZN - Free Report) at 21.1% while the other firms hold less than 7.2% of assets. The fund charges 0.13% in expense ratio and has gained 1.2% over the past week. It has a Zacks ETF Rank #1 with a Medium risk outlook.

PowerShares DB US Dollar Bullish Fund (UUP - Free Report)

UUP offers exposure to a dollar against a basket of six world currencies. This is done by tracking the Deutsche Bank Long US Dollar Index Futures Index Excess Return plus the interest income from the fund’s holdings of U.S. Treasury securities. In terms of holdings, UUP allocates nearly 57.6% in euro and 25.5% collectively in the Japanese yen and British pound. The fund has so far managed an asset base of $516.7 million while sees an average daily volume of around 1.1 million shares. It charges 80 bps in annual fees and added 1.7% over the past week. The fund has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.

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