Investors are generally sour when it comes to bank stocks, and the financial sector as a whole trades at a low valuation to expected earnings. But the great expansion of U.S. household wealth points to an opportunity for long-term investors to ride a wave of stable and growing earnings for certain financial service companies. These companies are de-emphasizing riskier and lower-margin lending businesses and cyclical investment-banking activities, while focusing on growing more stable fee-generating business.
Macrae Sykes Macrae Sykes manages the Gabelli Financial Services Opportunities ETF
Most exchange-traded ETFs are passively managed to track a broad index, such as the SPDR S&P 500 ETF Trust