AAPL - VFH: Rising Rates A Strong Tailwind For Vanguard Financials ETF

• Interest rates are a key driver of earnings for financial services companies. As a result, the current rising interest rate environment is generally bullish for the sector.
• As you know, the Federal Reserve is considerably behind the inflation curve relative to its dual mandate - one of which is to maintain stable prices.
• This week's 0.25% increase in the Federal Funds rate is only the start of what the Fed currently expects to be six more increases.
• The financial sector is levered to higher interest rates and has outperformed the broad market YTD. It is likely to continue doing so over the next 12-months.

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