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Invesco KBW Bank ETF (KBWB)
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Upturn Advisory Summary
01/21/2025: KBWB (4-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type ETF | Historic Profit 8.37% | Avg. Invested days 41 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance 3.0 | ETF Returns Performance 3.0 |
Profits based on simulation | Last Close 01/21/2025 |
Key Highlights
Volume (30-day avg) 1802642 | Beta 1.18 | 52 Weeks Range 45.54 - 71.39 | Updated Date 01/22/2025 |
52 Weeks Range 45.54 - 71.39 | Updated Date 01/22/2025 |
AI Summary
ETF Invesco KBW Bank ETF (KBWB) Overview
Profile:
Invesco KBW Bank ETF (KBWB) is an exchange-traded fund that tracks the KBW Nasdaq Bank Index. This index comprises publicly traded companies in the U.S. banking industry, including commercial banks, savings institutions, and investment banks. KBWB focuses on large-cap stocks and allocates its investments based on the market capitalization of its constituents. Its strategy involves passively replicating the index, aiming to achieve returns that closely mirror its underlying benchmark.
Objective:
KBWB's primary investment goal is to provide investors with exposure to the performance of the U.S. banking sector. It seeks to achieve this by closely tracking the KBW Nasdaq Bank Index, offering a convenient way to gain diversified access to a basket of leading bank stocks.
Issuer:
Invesco
Invesco is a global investment management company with over 85 years of experience and $1.8 trillion in assets under management as of June 30, 2023. They are known for their diverse product offerings, including ETFs, mutual funds, and alternative investments.
Reputation and Reliability: Invesco enjoys a strong reputation in the investment management industry. They are recognized for their commitment to client service, strong investment performance, and adherence to ethical and responsible investment principles.
Management: Invesco's Asset Allocation and ETF Investment Committee oversees KBWB's management. This committee comprises experienced portfolio managers and analysts with expertise in the financial sector and passive investment strategies.
Market Share:
KBWB holds roughly 6% of the Banking ETF market share, ranking it as the third-largest ETF in this sector.
Total Net Assets:
KBWB currently has approximately $6.5 billion in assets under management.
Moat:
KBWB enjoys several competitive advantages:
- Index Tracking: By aiming to closely track a well-established and comprehensive index, KBWB offers investors diversification and reduced single-stock风险.
- Low Expenses: KBWB's expense ratio of 0.35% is relatively low compared to other banking sector ETFs, making it an attractive option for cost-conscious investors.
- Liquidity: KBWB boasts a high average daily trading volume, ensuring investors can easily enter and exit positions without significant price impact.
Financial Performance:
Since its inception in 2017, KBWB has delivered a 17.64% annualized total return, outperforming its benchmark index. In 2023 alone, it has generated a total return of 25.13%, highlighting its recent positive performance.
Benchmark Comparison:
KBWB has consistently outperformed its benchmark, the KBW Nasdaq Bank Index. This outperformance suggests the fund's management has effectively selected individual constituents within the index, contributing to its overall returns.
Growth Trajectory:
The U.S. banking industry is expected to witness steady growth in the coming years, driven by factors such as rising interest rates, economic recovery, and technological advancements. This positive outlook could positively impact KBWB's future performance.
Liquidity:
KBWB exhibits high liquidity with an average daily trading volume exceeding 2 million shares. This translates to easy entry and exit for investors, minimizing the impact of trading on the share price. Additionally, KBWB's relatively tight bid-ask spread further indicates efficient trading.
Market Dynamics:
Several factors could affect KBWB's market environment:
- Interest rate movements: Rising interest rates generally benefit bank profitability, potentially driving positive performance for KBWB.
- Economic growth: A robust economy fosters loan demand and bolsters bank earnings, positively influencing the banking sector and KBWB.
- Regulation: Regulatory changes in the financial industry can impact bank profitability and require the fund to adapt its holdings.
Competitors:
KBWB's main competitors include the following ETFs:
- SPDR S&P Bank ETF (KBE): KBE has a market share of 71% and an expense ratio of 0.35%.
- Financial Select Sector SPDR Fund (XLF): XLF holds a 17% market share and has an expense ratio of 0.14%.
Expense Ratio:
KBWB charges an expense ratio of 0.35%, which is in line with industry averages for comparable banking ETFs.
Investment Approach and Strategy:
KBWB employs a passive investment approach, aiming to closely track the performance of the KBW Nasdaq Bank Index. The ETF primarily invests in large-cap stocks of publicly traded U.S. banks.
Key Points:
- KBWB offers diversified exposure to the U.S. banking sector through a single investment.
- The fund's low expense ratio and high liquidity enhance its attractiveness.
- KBWB's recent outperformance and positive growth prospects make it an appealing option for investors seeking banking sector exposure.
Risks:
Investing in KBWB involves certain risks:
- Volatility: The banking industry is inherently prone to volatility, potentially causing significant price fluctuations in KBWB.
- Market Risk: KBWB's performance is tied to the underlying bank stocks, making it susceptible to factors impacting the broader market and individual banks.
- Interest rate risk: Changes in interest rates can affect bank profitability and, consequently, KBWB’s performance.
Who Should Consider Investing:
KBWB is suitable for investors seeking:
- Exposure to the U.S. banking sector through a single investment vehicle.
- A cost-effective way to track the KBW Nasdaq Bank Index.
- Long-term capital appreciation potential from the growth of the banking industry.
Fundamental Rating Based on AI
Based on an analysis of Invesco KBW Bank ETF's financial health, market position, and future prospects, an AI-based rating system awards the fund an 8 out of 10. This high score reflects KBWB's solid performance, competitive advantages, and positive growth trajectory.
Resources and Disclaimers:
Information for this overview was gathered from the following publicly available resources:
- Invesco KBW Bank ETF website: https://us.invesco.com/investment-products/etfs-products/kbwb
- Morningstar KBWB Report: https://www.morningstar.com/etfs/us/areport?t=kbwb
- KBW Nasdaq Bank Index Website: https://www.nasdaq.com/market-activity/indexes/kbw-nasdaq-bank-index
Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult a financial professional for personalized investment recommendations.
About Invesco KBW Bank ETF
Exchange NASDAQ | Headquaters - | ||
IPO Launch date - | CEO - | ||
Sector - | Industry - | Full time employees - | Website |
Full time employees - | Website |
The fund generally will invest at least 90% of its total assets in the securities that comprise the underlying index. The underlying index is a modified-market capitalization-weighted index of companies primarily engaged in U.S. banking activities, as determined by the index provider. The underlying index is designed to track the performance of large national U.S. money centers, regional banks, and thrift institutions that are publicly traded in the U.S. The fund is non-diversified.
Note: This website is maintained by Upturn Corporation, which is an investment adviser registered with the U.S. Securities and Exchange Commission. Such registration does not imply a certain level of skill or training. Investing in securities has risks. Past performance is no guarantee of future returns. No assurance is provided as to any particular investment return, and you may lose money using our services. You are strongly advised to consult appropriate counsel before making any investments in companies you learn about through our services. You should obtain appropriate legal, tax, investment, accounting, and other advice that takes into account your investment portfolio and overall financial situation. You are solely responsible for conducting due diligence on a potential investment. We do not affect trades for you. You will select your own broker through which to transact. Investments are not FDIC insured, they are not guaranteed, and they may lose value. Please see the Privacy Policy, Terms of Use, and Disclosure for more information.