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Rising Interest Rates

Rising Interest Rates

5.48k followers17 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-0.09%-11.10%-7.01%+57.78%
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17 symbols

SymbolCompany nameLast priceChange% changeMarket timeVolumeAvg vol (3-month)Market cap
SCHWThe Charles Schwab Corporation33.375+0.03+0.10%10:55 am GMT-41.36M10.91M42.97B
AMTDTD Ameritrade Holding Corporation36.15+0.05+0.14%10:55 am GMT-4421.82k4.18M19.55B
FITBFifth Third Bancorp19.58-0.06-0.31%10:55 am GMT-4789.75k8.12M13.94B
KEYKeyCorp12.095+0.07+0.54%10:55 am GMT-42.10M12.20M11.80B
ETFCE*TRADE Financial Corporation51.36-0.10-0.19%10:55 am GMT-4287.27k2.54M11.36B
RFRegions Financial Corporation10.78+0.02+0.19%10:54 am GMT-41.63M11.18M10.35B
ZIONZions Bancorporation, National Association32.1-0.35-1.08%10:55 am GMT-4392.94k2.41M5.26B
EWBCEast West Bancorp, Inc.35.06-0.26-0.74%10:54 am GMT-493.59k1.15M4.96B
FFINFirst Financial Bankshares, Inc.29.79-0.24-0.80%10:54 am GMT-444.62k617.73k4.20B
BOKFBOK Financial Corporation55.29+0.27+0.49%10:53 am GMT-421.52k271.37k3.89B
GBCIGlacier Bancorp, Inc.34.98-0.31-0.88%10:54 am GMT-430.77k739.32k3.34B
IBKCIBERIABANK Corporation43.08-2.46-5.40%4:00 pm GMT-45.27M529.86k2.27B
BXSBancorpSouth Bank20.96-0.27-1.27%10:55 am GMT-437.74k530.42k2.15B
IBOCInternational Bancshares Corporation30.39-0.24-0.78%10:53 am GMT-412.09k265.07k1.92B
IBTXIndependent Bank Group, Inc.43.455-0.45-1.04%10:44 am GMT-414.48k862.88k1.88B
HBHC----6:07 pm GMT-4---