E-Trade's Growth In Trading Volumes, Assets Continues In May

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E*Trade Financial  ( ETFC ) saw impressive growth across key metrics in May . The brokerage saw a significant rise in trading volumes, both from the previous month (+8%) and year over year (+42%) during the month. The acquisition of OptionsHouse in July 2016 continued to contribute to the increase in brokerage accounts and derivative trading volumes, with over 32% of trading volumes attributed to derivatives in comparison to 24% in May 2016.

Interest earning assets have continued their strong growth, in large part due to the recent rate hike and the expectation of further interest rate hikes this year. As E-Trade has a higher yield on its interest earning assets (2.7%) relative to many competitors, rate hikes should drive solid revenue growth for the company. With the likelihood of a series of hikes in 2017, we expect the growth in assets to continue.


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Stocks , US Markets , Investing Ideas
Referenced Symbols: ETFC , SCHW , AMTD

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