SPGP - These ETFs have been dragged down by SVB Financial's crash

2023-03-10 10:22:40 ET

The recent bloodbath in shares of SVB Financial Group ( NASDAQ: SIVB ) has sent shockwaves through the financial sector, leading to a sharp drop in many exchange traded funds tied to the parent of Silicon Valley Bank.

Halted at the start of trading, SVB Financial Group ( SIVB ) had plunged by 60% in premarket trading, adding to the 60% drop the stock saw the previous day. The unraveling took place as the company attempted to restructure its balance sheet, before running into problems raising capital .

As the shares of the bank crash, the slide has pulled down a handful of exchange traded funds that have heavy weightings towards the company. SIVB is currently owned by 200 different ETFs. Here are the five with the largest weightings towards SIVB:

• BlackRock Future Financial & Technology ETF ( BPAY ) 4.34% allocation.
• iShares U.S. Regional Banks ETF ( NYSEARCA: IAT ) 3.21% allocation.
• Invesco KBW Bank ETF ( NASDAQ: KBWB ) 2.95% allocation.
• SPDR S&P Regional Banking ETF ( KRE ) 2.36% allocation.
• Invesco S&P 500 GARP ETF ( SPGP ) 2.15% allocation.

Friday’s price action: BPAY -5% , IAT -3.5% , KBWB -3% , KRE -3.9% , SPGP -1.8% .

SVIB’s collapse has also sent ripples towards the whole banking sector along with the world’s largest financial ETF. Early on in Friday's action, the Financial Select Sector SPDR Fund ( NYSEARCA: XLF ) slid 1.5% .

SVIB’s drop off comes as the company announced a repositioning of its balance sheet and looked to sell $1.75B of common and preferred stock to boost its liquidity. SVB Financial has now hired advisers to explore a potential sale.

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