ETFs seeking to replicate financials stocks indices experienced another painful market session yesterday with another daily loss of -3,88% as well as -$144,71M of outflows. This brought the 30-days cumulative performance back to -4,24%. Year-to-date, ETFs are down 26,62% and investors reduced their exposure to the segment by -$1,34Bn. Financials stocks’ post-crash ‘rally’ came to a stop following the publication of sharp drops in banks quarterly earnings, with fears mounting that consumers and businesses will be forced to default on their loans because of the coronavirus crisis. Indeed, banks are asked to pile up cash as they could be facing a growing amount of loan losses. Uncertainties are the highest around loans to companies from specific sectors such as the energy industry. Another factor at play here might be the lower interest rates framework instaured by the FED, that is expected to considerably weigh on banks’ income. 17 ETFs tracking 13 indices are included in the segment for a total of $8,9Bn of assets under management.