The financials sector as a whole has been a very intriguing sector for investors of late, given the recent boost many financial firms have seen from the Trump election and broader economic growth domestically and abroad.
Investors looking to gain exposure to financials in North America typically look at the continent’s largest banks first, and with the vast majority of the Canadian financials sector dominated by five or six banks, it is no surprise that the vast majority of investment in the financials sector in Canada happens to center on the big Canadian players.In the U.S. market, however, a number of interesting regional opportunities are available to investors interested in banks which have not yet hit large-cap status. A recently launched ETF by Hamilton Capital intends to capitalize on the strong earnings of the mid-cap financials sector in the U.S. as well as regional opportunities specific to certain states which the ETF will weight heavier than others.
The U.S. mid-cap financials sector approximates the entire Canadian equities market, making it massive in both size as well as opportunity, however the sheer size of the sector presents a challenge for investors looking to identify specific opportunities among over 185 mid-cap banks in the U.S. ranging from $500 million to $20 billion in market capitalization.
Having an ETF sort through the pile and provide investors with a packaged product to take advantage of the overall sector is something every investor interested in U.S. mid-cap financials should consider.Invest wisely, my friends.