Chalk one up for Washington this week in the running battle with Wall Street.
The SEC recently filed civil securities-fraud charges against Goldman Sachs (GS) and a trader in its mortgage group. As a result, Goldman’s stock price declined nearly 20% in a matter of days.
Several exchange traded funds have significant exposure to Goldman. The Dow Jones U.S. Broker-Dealer Index Fund (IAI) has Goldman as its number one holding with nearly 10% of the portfolio allocated to GS.
The SPDR KBW Capital Markets ETF (KCE) has over 7% of the portfolio invested in Goldman, the fund’s second largest position.
Both funds are down over 3% in recent days since the SEC announcement.