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Rising Interest Rates

Rising Interest Rates

5.68k followers20 symbols Watchlist by Motif Investing

The Federal Reserve may raise interest rates from their historic lows of 0.25% toward their historical average of 5%.

Curated by Motif Investing

Background

If interest rates begin to climb, who wins? Given the significant interest income that online brokers, custodian banks, and other financials earn on customer cash balances, they could be the ones poised to profit.

The near-0% rates of recent years have eviscerated the interest income stream for these financials. In normal rate environments, some can derive as much as 45% of their revenue from lending. And while potential homeowners and other borrowers might not be thrilled about it, an uptick in rates could mean quick cash flow for those who hold customer cash, and are well prepared.

How did we choose these stocks?

We identified US-listed stocks and American Depository Receipts of companies that are engaged in activities relevant to this watchlist's theme. We then filtered out companies that have a share price of less than .00 or a market capitalization less than 00 million, and excluded illiquid stocks by screening companies for liquidity i.e. average bid-ask spreads, dollar volume traded etc. Finally the proprietary Motif Optimization Engine determined the constituent stocks. Learn more about how we select our watchlists.

Who made these selections?

Motif is an online brokerage built on thematic portfolios of up to 30 stocks and ETFs. Founded in 2010 by Hardeep Walia, Motif combines complex proprietary algorithms with skilled advisers to develop these thematic portfolios. Learn more about our team.

How are these weighted?

First, we determined each company's percentage of total revenue derived from this watchlist's theme. Second, we applied a pure-play factor to give greater relative weight to companies that derive a higher percentage of their revenue from this theme. Finally, we weighted each company by its market capitalization adjusted for revenue exposure to the theme.

More details on how we build and weight watchlists are available here.

Performance

WatchlistChange today1-month return1-year returnTotal return
Rising Interest Rates+1.98%-11.10%-7.01%+57.78%
^GSPC-0.17%-3.54%+11.57%+3458.98%

20 symbols

SymbolCompany nameLast priceChange% changeMarket timeVolumeAvg vol (3-month)Market cap
SCHWThe Charles Schwab Corporation35.6+0.63+1.80%9:59 am GMT-4608.63k9.42M45.88B
AMTDTD Ameritrade Holding Corporation38.54+0.68+1.80%9:59 am GMT-4265.19k3.26M20.85B
FITBFifth Third Bancorp20.53+0.42+2.09%9:59 am GMT-4488.66k6.00M14.62B
SIVBSVB Financial Group237.7+7.23+3.14%9:59 am GMT-429.65k305.91k12.30B
KEYKeyCorp12+0.26+2.21%9:59 am GMT-4823.26k9.41M11.71B
ETFCE*TRADE Financial Corporation49.68+0.38+0.77%9:59 am GMT-4124.80k2.07M10.98B
RFRegions Financial Corporation11.285+0.24+2.22%9:59 am GMT-4809.48k8.46M10.84B
CMAComerica Incorporated37.84+0.69+1.86%9:59 am GMT-4144.06k1.65M5.26B
ZIONZions Bancorporation, National Association29.26+0.64+2.24%9:58 am GMT-4105.79k1.65M4.80B
PBProsperity Bancshares, Inc.50.87+1.39+2.81%9:58 am GMT-419.01k490.44k4.71B
EWBCEast West Bancorp, Inc.32.395+0.53+1.68%9:59 am GMT-461.21k772.23k4.58B
FFINFirst Financial Bankshares, Inc.27.91+0.45+1.64%9:55 am GMT-416.24k472.40k3.94B
BOKFBOK Financial Corporation51.215+1.21+2.41%9:59 am GMT-414.15k231.86k3.60B
GBCIGlacier Bancorp, Inc.31.025+0.18+0.60%9:59 am GMT-428.35k396.23k2.96B
IBKCIBERIABANK Corporation43.08-2.46-5.40%4:00 pm GMT-45.27M1.01M2.27B
BXSBancorpSouth Bank19.125+0.33+1.78%9:58 am GMT-420.17k442.38k1.96B
IBTXIndependent Bank Group, Inc.43.28+0.65+1.52%9:56 am GMT-422.10k334.26k1.87B
IBOCInternational Bancshares Corporation26.63+0.43+1.64%9:51 am GMT-49.43k197.52k1.68B
HAFCHanmi Financial Corporation7.99+0.13+1.59%9:59 am GMT-411.08k221.52k244.95M
HBHC----6:07 pm GMT-4---