5.68k followers • 21 symbols Watchlist by Motif Investing
The Federal Reserve may raise interest rates from their historic lows of 0.25% toward their historical average of 5%.
Curated by Motif Investing
If interest rates begin to climb, who wins? Given the significant interest income that online brokers, custodian banks, and other financials earn on customer cash balances, they could be the ones poised to profit.
The near-0% rates of recent years have eviscerated the interest income stream for these financials. In normal rate environments, some can derive as much as 45% of their revenue from lending. And while potential homeowners and other borrowers might not be thrilled about it, an uptick in rates could mean quick cash flow for those who hold customer cash, and are well prepared.
We identified US-listed stocks and American Depository Receipts of companies that are engaged in activities relevant to this watchlist's theme. We then filtered out companies that have a share price of less than .00 or a market capitalization less than 00 million, and excluded illiquid stocks by screening companies for liquidity i.e. average bid-ask spreads, dollar volume traded etc. Finally the proprietary Motif Optimization Engine determined the constituent stocks. Learn more about how we select our watchlists.Who made these selections?
Motif is an online brokerage built on thematic portfolios of up to 30 stocks and ETFs. Founded in 2010 by Hardeep Walia, Motif combines complex proprietary algorithms with skilled advisers to develop these thematic portfolios. Learn more about our team.How are these weighted?
First, we determined each company's percentage of total revenue derived from this watchlist's theme. Second, we applied a pure-play factor to give greater relative weight to companies that derive a higher percentage of their revenue from this theme. Finally, we weighted each company by its market capitalization adjusted for revenue exposure to the theme.
More details on how we build and weight watchlists are available here.
|Watchlist||Change today||1-month return||1-year return||Total return|
|Rising Interest Rates||-0.46%||-11.10%||-7.01%||+57.78%|
|Symbol||Company name||Last price||Change||% change||Market time||Volume||Avg vol (3-month)||Market cap|
|SCHW||The Charles Schwab Corporation||36.03||+0.22||+0.61%||4:00 pm GMT-4||9.01M||9.48M||46.43B|
|AMTD||TD Ameritrade Holding Corporation||38.96||+0.28||+0.72%||4:00 pm GMT-4||4.89M||3.28M||21.07B|
|FITB||Fifth Third Bancorp||21.74||-0.13||-0.59%||4:00 pm GMT-4||9.53M||6.40M||15.48B|
|SIVB||SVB Financial Group||246.37||+0.46||+0.19%||4:00 pm GMT-4||464.65k||311.43k||12.75B|
|KEY||KeyCorp||12.65||-0.03||-0.24%||4:00 pm GMT-4||12.36M||9.59M||12.35B|
|ETFC||E*TRADE Financial Corporation||51.95||-0.09||-0.17%||4:00 pm GMT-4||2.46M||2.08M||11.59B|
|RF||Regions Financial Corporation||11.91||-0.12||-1.00%||4:00 pm GMT-4||12.13M||9.11M||11.44B|
|CMA||Comerica Incorporated||40.65||-0.12||-0.29%||4:05 pm GMT-4||2.13M||1.73M||5.65B|
|ZION||Zions Bancorporation, National Association||31.42||-0.10||-0.32%||4:00 pm GMT-4||2.32M||1.73M||5.15B|
|EWBC||East West Bancorp, Inc.||34.28||-0.15||-0.44%||4:00 pm GMT-4||1.45M||822.65k||4.85B|
|PB||Prosperity Bancshares, Inc.||51.35||-0.54||-1.04%||4:00 pm GMT-4||1.02M||493.54k||4.75B|
|FFIN||First Financial Bankshares, Inc.||29.03||-0.32||-1.09%||4:00 pm GMT-4||1.71M||501.60k||4.10B|
|BOKF||BOK Financial Corporation||52.93||-1.40||-2.58%||4:00 pm GMT-4||440.43k||238.64k||3.72B|
|GBCI||Glacier Bancorp, Inc.||33.09||-0.65||-1.93%||4:00 pm GMT-4||1.18M||618.89k||3.16B|
|IBKC||IBERIABANK Corporation||43.08||-2.46||-5.40%||4:00 pm GMT-4||5.27M||923.30k||2.27B|
|BXS||BancorpSouth Bank||20.28||-0.25||-1.22%||4:00 pm GMT-4||1.65M||459.67k||2.09B|
|IBTX||Independent Bank Group, Inc.||45.81||-0.18||-0.39%||4:00 pm GMT-4||962.04k||348.06k||1.98B|
|IBOC||International Bancshares Corporation||28.645||+0.07||+0.23%||4:00 pm GMT-4||837.12k||219.11k||1.81B|
|HAFC||Hanmi Financial Corporation||8.59||-0.12||-1.38%||4:00 pm GMT-4||429.87k||228.36k||263.34M|
|HBHC||-||-||-||-||6:07 pm GMT-4||-||-||-|
The Australian dollar has initially tried to rally during the week, but we have pulled back a bit to show that the market is not quite ready to continue higher.
The Australian dollar has initially tried to rally on Friday but has given back the gains to roll over again. But this is a market that is still in an uptrend.
“We wonder if the risk of not owning U.S. bank stocks is greater than owning them,” writes Barclays’ Jason Goldberg.