10 ETFs With the Highest Exposure to Silicon Valley Bank

On Friday, regulators formally closed Silicon Valley Financial institution, or SVB, and shut down buying and selling of its inventory. The financial institution had discovered itself in a troublesome place after cash-strapped tech firms requested too many withdrawals directly, forcing it to promote long-term bonds at a steep loss.

SVB’s debacle has despatched ripples throughout bank-related shares and exchange-traded funds, or ETFs. However even in case you weren’t invested instantly in SVB, its collapse may nonetheless have an effect on you.

First, in case you don’t put money into ETFs or mutual funds and haven’t invested instantly in SVB inventory, then go forward and breathe — you’re possible not uncovered to SVB’s debacle. Not less than not instantly.

Issues get difficult in case you’re invested in bank-focused ETFs. These funds include items of quite a few firms. These can embody giant banks (akin to JPMorgan Chase & Co. and Financial institution of America) alongside smaller banks like SVB.

In different phrases, you’ll have invested in an ETF for the large financial institution shares and unknowingly introduced SVB into your portfolio.

Presently, 260 ETFs include Silicon Valley Financial institution^[0]. To search out out whether or not yours does, you are able to do two issues:

1. Use an ETF inventory publicity instrument like ETF Database. These instruments allow you to seek for a particular inventory and filter ETFs that include it. This works greatest you probably have a number of financial institution ETFs and also you wish to save time by seeing them suddenly.

2. Search for your ETF’s product web page. Most ETFs have a webpage devoted to efficiency. You will discover what your ETF is invested in beneath the “holdings” part web page. Notice: Typically these pages aren’t updated.

The ETFs at biggest threat are nonetheless solely minimally uncovered to SVB. In actual fact, no financials-sector equities ETF on ETF Database has greater than 4% of its holdings invested within the failing financial institution. Nevertheless it’s good to pay attention to which ETFs are most uncovered. Listed below are the ten fairness ETFs within the financials sector with the very best publicity to SVB:

• Prime 3 holdings: SVB (2.34%), Western Alliance Bancorp (2.27%), East West Bancorp (2.14%)

• 12 months-to-date efficiency: -9.74%

• Prime 3 holdings: SVB (1.70%), Jackson Monetary Incorporation (1.69%), Voya Monetary (1.68%)

• 12 months-to-date efficiency: -5.51%

• Prime 3 holdings: U.S. Bancorp (12.56%), PNC (12.21%), Truist (12.13%)

• 12 months-to-date efficiency: -8.52%

• Prime 3 holdings: Citigroup (9.12%), JPMorgan (8.57%), Wells Fargo (7.80%)

• 12 months-to-date efficiency: -4.28%

• Prime 3 holdings: BlackRock Money Funds Treasury SL Company (14.29%), Financial institution of America (4.01%), JPMorgan (3.99%)

• 12 months-to-date efficiency: -5.95%

• Prime 3 holdings: MarketAxess (1.96%), Arch Capital Group (1.76%), American Specific (1.74%)

• 12 months-to-date efficiency: -2.73%

• Prime 3 holdings: Berkshire Hathaway (4.06%), Visa (3.62%), JPMorgan (3.45%)

• 12 months-to-date efficiency: -15.89%

• Prime 3 holdings: JPMorgan (8.77%), Wells Fargo (7.98%), Citigroup (7.53%)

• 12 months-to-date efficiency: -5.80%

• Prime 3 holdings: OneMain Holding (2.02%), Evercore (1.95%), Janus Henderson Group (1.90%) 

• 12 months-to-date efficiency: -0.63%

• Prime 3 holdings: Berkshire Hathaway (14.68%), JPMorgan (10.58%), Financial institution of America (5.95%)

• 12 months-to-date efficiency: -1.93%