SmartMoney’s Rob Wherry looks at the impact of the news that an RTC-like entity is in the works to address the credit crisis in his article Government Bailout Plan Sends ETFs Higher.
Wherry notes that the development was good news for financial ETFs including the SPDR KBW Capital Markets (KCE), the iShares Dow Jones U.S. Regional Banks ETF (IAT), and the SPDR KBW Regional Banking Fund (KRE).
The surprise move by central banks in key markets to pump cash into their financial systems drove stocks higher on Friday and left short sellers scrambling for cover. The ProShares UltraShort FTSE/Xinhua UltraShort China 25 (FXP) declined 24% on Friday.