Wells Fargo announced Friday that it had made a strategic adjustment to its portfolio to ensure it was aligned with current market conditions and the bank's long-term investment goals. Specifically, Wells Fargo decided to enhance both its industrial and banking sectors.
“The right approach remains balanced. In July, we upgraded industrials to neutral, banks to overweight and repositioned our sector weight balance,” Wells Fargo’s equity research team said in a note to investors.
Wells Fargo went on to highlight recent price action in both sectors.
Industrial actions: -0.6% week to date, +9.7% year to date, and +15.1% for a period of 1 year.
Banks: -0.2% week to date, +23.3% year to date, and +36.1% for a period of 1 year.
Additionally, investors who share a similar mindset to Wells Fargo can analyze these two market areas in more detail and can do so through the use of exchange-traded funds. Below are a group of industrial and banking ETFs that may be worth monitoring in greater detail.
Industrial ETFs: (NYSERCA:XLI), (VIS), (FXR), (IYJ), (FIDU), (RSPN),
Banking ETFs: (NASDAQ:KBWB), (KBE), (FTXO), (KRE), (KBWR), (IAT) and (DPST).
