27% profits every 20 days?
This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.
An ETF offering exposure to the six largest U.S. banks launched Tuesday from Roundhill Investments. Here’s a look at the ETF, its holdings and why it’s important as the banking sector struggles.
What Happened: The Roundill Big Bank ETF (NASDAQ:BIGB) is a new ETF that holds equal weightings of the six largest U.S. bank stocks.
The ETF launch comes after banks like SVB Financial (NASDAQ:SIVB)'s Silicon Valley Bank, Silvergate Capital (NYSE:SI) and Signature Bank (NASDAQ:SBNY) have put pressure on the sector.
“In the wake of the banking failures at a Silicon Valley Bank, Signature Bank of New York, and Silvergate, individuals and institutions alike are migrating banking relationships to the institutions deemed too big to fail,” Roundhill Investments Chief Strategy Officer Dave Mazza said.
The Roundhill Big Bank ETF holds positions in the following companies:
Bank of America Corporation (NYSE:BAC)
Citigroup (NYSE:C)
JPMorgan Chase & Co (NYSE:JPM)
Goldman Sachs (NYSE:GS)
Morgan Stanley (NYSE:MS)
Wells Fargo & Co (NYSE:WFC)
The ETF will be rebalanced quarterly and reconstituted annually. The goal of the fund is to provide concentrated weighting and exposure to the largest U.S. bank stocks, without typical filler stocks found in most ETFs.
“BIGB allows investors to achieve exposure to these money center banks without the potential exposure to smaller financial services companies such as regional banks, brokerages, and insurance companies found in existing financial ETFs.”
The ETF has an expense ratio of 0.29%.
Related Link: New Metaverse ETF Launches From Roundhill Investors: What Investors Should Know
Why It’s Important: The launch of the banking sector ETF from Roundhill comes at a time when investors are looking for banks without liquidity issues and have diversification among depositors and account types.
“There is a crisis of confidence in regional banks driven by a realization that many are non-diversified and come with greater risks,” Mazza told Benzinga. “Much of these risks had been overlooked in a low rate environment. At the same time, regionals were being held to lower risk standards, so they had advantages compared to larger banks.”
Mazza told Benzinga the six banks selected for the new Roundhill ETF could benefit from the recent bank collapses.
“While the initial move may have been a flight to quality, the six big U.S. banks will be beneficiaries of this turmoil, as the big banks have more diversified deposits and greater product breadth along with stronger balance sheets.”
Along with the banking sector-specific ETF, Roundhill said it plans on launching similar funds targeting the technology, airlines and defense sectors, holding only the top companies in each respective ETF. The ETFs will have the symbols BIGT, BIGA and BIGD, respectively.
“Recent market developments have reinforced what we have been hearing from investors for years about the challenges of existing sector ETFs. Roundhill’s BIG ETFs offer investors precise access to the most important companies in specific economic sectors,” Mazza said.
Roundhill is well-known for launching several first-to-market thematic ETFs, including the Roundhill Sports Betting & iGaming ETF (NYSE:BETZ) and the Roundhill Ball Metaverse ETF (NYSE:METV).
Read Next: A New Fund For 420: Here Are The Details Of The Roundhill Cannabis ETF
Photo via Shutterstock.
27% profits every 20 days?
This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!