A Different ETF For Financial Earnings (KCE)

There are plenty of money center and regional banks reporting earnings this week, but their former investment bank peers like Morgan Stanley (NYSE: MS) and Goldman Sachs (NYSE: GS) are not likely to get lost in the shuffle. Morgan Stanley and State Street (NYSE: STT) deliver results on Wednesday and Goldman follows on Thursday. One ETF that figures to be a good way to play these earnings announcements is the SPDR KBW Capital Markets ETF (NYSE: KCE). Morgan Stanley and Goldman Sachs are KCE's two largest constituents and State Street is number four. KCE's volume leaves a little bit to be desired, but as an ETF play on this trio of earnings reports investors would be hard pressed to find a better option. Keep in mind that Morgan Stanley is actually expected to grow profits at a better rate than Goldman in 2010 and State Street has long been one of the healthier banks in the U.S., so KCE may have some merit beyond earnings season.