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July 14, 2020, 1:20 p.m. EDT

Bank ETFs sink as earnings from JPMorgan, Citi, and Wells Fargo fail to inspire

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By Andrea Riquier

Exchange-traded funds with exposure to banks lagged the broader market Tuesday after a trio of big banks reported disappointing second-quarter results. The Invesco KBW Bank ETF /zigman2/quotes/202716924/composite KBWB +3.18% and the First Trust Nasdaq Bank ETF were both down 1.7% in the early afternoon, and the SPDR S&P Regional Banking ETF was down 2.5%. The Invesco fund has about 25% of its portfolio in the three companies that reported Tuesday: Citigroup Inc., JPMorgan Chase Inc. /zigman2/quotes/205971034/composite JPM +2.20% , and Wells Fargo & Co. /zigman2/quotes/203790192/composite WFC +3.42% , which was down more than 5% midday. Investors don't need to look too far to see the last time most of the bank stocks and the ETFs were this low: they've been up and down all year. Still, for Wells Fargo, which missed analyst expectations, it was one of the worst post-earnings sell-offs in years. Wells shares have lost more than 55% in the year to date, compared to a 2.2% decline for the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.06% .

/zigman2/quotes/202716924/composite
US : U.S.: Nasdaq
$ 39.89
+1.23 +3.18%
Volume: 237,450
Aug. 7, 2020 3:59p
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/zigman2/quotes/205971034/composite
US : U.S.: NYSE
$ 99.38
+2.14 +2.20%
Volume: 14.74M
Aug. 7, 2020 4:00p
P/E Ratio
13.39
Dividend Yield
3.62%
Market Cap
$302.87 billion
Rev. per Employee
$497,647
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/zigman2/quotes/203790192/composite
US : U.S.: NYSE
$ 25.07
+0.83 +3.42%
Volume: 46.27M
Aug. 7, 2020 4:02p
P/E Ratio
28.65
Dividend Yield
1.60%
Market Cap
$103.29 billion
Rev. per Employee
$392,114
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/zigman2/quotes/210599714/realtime
US : S&P US
3,351.28
+2.12 +0.06%
Volume: 2.28B
Aug. 7, 2020 5:10p
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