“Citigroup (NYSE:C) shares were among the winners in the financial sector Monday after analysts at Goldman Sachs (NYSE:GS) upgraded the megabank’s stock, arguing that Citi’s massive trading desk will wring profits from the recent volatility in financial markets,” Scott Eden Reports From The Street.

Eden goes on to report, “When Citigroup reported its first-quarter results last month, big trading-desk returns helped the firm easily surpass expectations. Goldman’s lead financial-sector stock analyst, Richard Ramsden, expects more of the same from Citigroup.  Though he didn’t upgrade any other big financial stocks, Ramsden expressed a similarly bullish opinion on other megabanks with large trading operations, including JPMorgan (NYSE:JPM) and Bank of America (NYSE:BAC).”

“Ramsden and his group don’t share the same enthusiasm for Wells Fargo (NYSE:WFC), however. The Goldman analysts cut their rating on shares of the San Francisco-based bank to neutral from buy based mostly on valuation relative to the rest of the group. Shares of Citigroup, which continues to mull plans for a reverse stock split, were gaining 14 cents, or 3.9%, to $3.89,” Eden Reports.

As a result of the Goldman Sachs (NYSE:GS) upgrade, the gain in Citigroup (NYSE:C) was helping the KBW Bank ETF (NYSE:KBE) pare it’s losses in market trading.  The KBW Bank ETF (NYSE:KBE) has a high concentration of Citigroup shares within it’s holdings, at 7.88% of assets. The KBW Bank ETF with a top bank holding of Bank of America (NYSE:BAC), at 7.88% of assets has had a great year despite the recent turn in the markets. Though these banks haven’t recovered all of their losses over the past three years, investors have been still remaining cautious.

We have put together some details on the KBW Bank ETF (NYSE:KBE) including a list of the other banks within the ETF below. (All weightings are subject to daily changes)

SPDR KBW Bank ETF (NYSE:KBE)

The investment seeks to replicate the performance of the KBW Bank index. The fund uses a passive management strategy designed to track the total return performance of the Bank index. It is nondiversified.

TOP 10 HOLDINGS ( 59.21% OF TOTAL ASSETS)

Company Symbol % Assets Bank of America Corporation Com (BAC) 9.27 Citigroup, Inc. Common Stock (C) 7.88 Wells Fargo & Company Common St (WFC) 7.31 U.S. Bancorp Common Stock (USB) 5.99 JP Morgan Chase & Co. Common St (JPM) 5.55 Regions Financial Corporation C (RF) 5.04 New M&I Corporation Common Stoc (MI) 4.58 Fifth Third Bancorp (FITB) 4.56 SunTrust Banks, Inc. Common Sto (STI) 4.52 Huntington Bancshares Incorpora (HBAN) 4.51

 

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