KBWB: Breaking Down The ETF That Offers Narrow Coverage To U.S. Banks
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The Alpha Sieve4.74K FollowersFollow5ShareSavePlay(13min)CommentsSummaryThe Invesco KBW Bank ETF offers concentrated exposure to 26 US banking stocks, with a strong tilt toward diversified large-cap banks, which account for 44% of holdings.KBWB is very liquid and has a reasonable expense ratio of 0.35%.KBWB pays dividends, but the banking sector is also highly cyclical and is very leveraged to the S&P 500.We compare KBWB to two smaller banking ETF alternatives—KBE and FTXO. EschCollection/DigitalVision via Getty Images Introduction to the Invesco KBW Bank ETF The Invesco KBW Bank ETF (KBWB), which has been around since November 2011, is a $6B-sized ETF (in terms of assets under management) that is backed by Invesco, an American Investment ManagementThis article was written byThe Alpha Sieve4.74K FollowersFollowInvestment research, primarily oriented towards uncelebrated/under-covered stocks and ETFs, across North America, Latin America, Europe and Asia. Seeks to combine both fundamental and technical disciplines while making an investment/trading proposition.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.