Stock price when the opinion was issued
It is one of their largest holdings. This is really a play on short rates. If Fed funds keep rising, then this will continue to work. The fundamentals look like they will continue to look good. The ETF is part exchange, part large cap, and interest rate sensitives trading houses. He likes it all day long.
Financials have been slower to recover, only gaining strength in September-October. Still have a long way to go. If you believe we had a generational low in long-term interest rates, and we're just entering a reflationary cycle, insurance companies benefit as assets go up in price. Higher rates are really good. Also interesting are KIE, KRE and KBE. Most interesting is IAI, making new highs. As a group, financials have underperformed since 2007, so they should now have a tailwind in this environment.
This sector holds big bank deposits, which benefit from higher interest rates – especially shorter term rates. It also benefits as the market improves.