Five ETFs With Biggest Citigroup Stake
NEW YORK (TheStreet) -- Citigroup (C) beat analysts' first-quarter earnings estimates, prompting investors to push up its stock by 7% yesterday.
With the gain, Citigroup's stock has soared more than 40% this year, giving investors an opportunity to buy more and possibly cash in as the bank's balance sheet improves -- or sell on expectations the rally has gotten ahead of itself given there are obstacles ahead.
Above are the exchange traded funds with the highest concentration of Citigroup shares, according to Marco Polo XTF.
The ETF with the biggest stake in Citigroup shares is KBW Bank ETF (KBE), at 8.4% of assets. iShares Dow Jones US Financial Services (IYG) is second at 6.5%.
All five of the ETFs have had a great year. Even though they haven't recovered all of their losses over the past three years, it may be time to look for the exit. That's because TheStreet.com Ratings' stock model grades Citigroup at D, or "sell." Beyond the model, which is conservative in nature, there are two bearish signals. First, the U.S. government is in the process of selling 7.7 billion shares of Citigroup worth as much as $35 billion. The first third of the sales are scheduled to happen this year. Once the government has sold its last Citigroup share, selling pressure will be diminished. The second sign will come directly from Chief Executive Officer Vikram Pandit. He's restricting his salary to $1 a year until Citigroup is consistently profitable. When he finally believes in the sustainability of his own company, maybe we can too. For the best rated exchange traded funds, check out our Top ETFs page. -- Reported by Kevin Baker in Jupiter, Fla.Select the service that is right for you!
COMPARE ALL SERVICESAction Alerts PLUS
TRY IT FREEJim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
Product Features:
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Dividend Stock Advisor
TRY IT FREENew! $49.95/yr
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
Product Features:
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Stocks Under $10
TRY IT FREEDavid Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.
Product Features:
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
- Weekly roundups
Real Money
TRY IT FREE24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
Product Features:
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
Real Money Pro
TRY IT FREEAll of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
Product Features:
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Options Profits
TRY IT FREEOur options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
Product Features:
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV