Financial Funds Slump as Prospects Dim

Worst Performing Financial Sector Funds for the Week Ending Jan. 15 Fund (Ticker) Rating Fund Type Total Return 1 Week Total Return 1 Year Direxionshares Financial Bull 3X Shares (FAS) U ETF -40.64% N.A. Rydex 2X S&P Select Sector Financial ETF (RFL) U ETF -32.17% N.A. ProFunds Banks UltraSector ProFund (BKPIX) E- Open-End -31.16% -78.27% ProShares Ultra Financials (UYG) D- ETF -28.08% -88.37% ProFunds Financials UltraSector ProFund (FNPIX) E- Open-End -22.24% -76.51% SPDR KBW Bank ETF (KBE) C ETF -20.53% -57.09% First Trust Specialty Finance and Financial Opportunities Fund (FGB) E- Closed-End  -18.76% -60.71% Diamond Hill Financial Trends Fund Inc (DHFT) C- Closed-End  -18.46% -55.31% iShares Dow Jones US Financial Services Index Fund (IYG) C ETF -17.65% -58.85% Regional Bank HOLDRs Trust (RKH) C ETF -17.16% -49.26% Source: Bloomberg & TheStreet.com Ratings

Inverse fund ProShares UltraShort Financials(SKF) popped 34.7% on 200% leverage, while the unleveraged ProShares Short Financials(SEF) gained 16.6%. Like the Direxion Financial Bear 3X Shares mentioned above, these highly volatile securities may be utilized for short-term trading strategies but are not recommended as long-term holdings even in a bear market.

For more information, check out an explanation of our ratings.

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