David Barse, founder and chief executive of XOUT Capital, said his large-cap ETF eliminated its exposure to all banks except for Bank of New York last fall. The GraniteShares XOUT US Large Cap ETF (XOUT) applies fundamental metrics to remove the 250 least appealing companies represented in the S&P 500 Index. “It came down to deposit growth in banks,” Barse said. “Banks are being disintermediated by all kinds of other payment systems and banks weren’t able to deal with what was going on in an innovative world. People started taking money out of banks because they couldn’t get a return on it.”
