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KBWB
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Invesco KBW Bank ETF (KBWB)

Upturn stock ratingUpturn stock rating
$70.54
Delayed price
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PASS
  • BUY Advisory
  • Profitable SELL
  • Loss-Inducing SELL
  • Profit
  • Loss
  • Pass (Skip investing)
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Upturn Advisory Summary

01/21/2025: KBWB (4-star) is currently NOT-A-BUY. Pass it for now.

Upturn Star Rating

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Above Average Performance

These Stocks/ETFs, based on Upturn Advisory, frequently surpass the market, reflecting reliable and trustworthy advice.

AI Based Fundamental Rating

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Moderate Performance

These Stocks/ETFs, based on Upturn Advisory, typically align with the market average, offering steady but unremarkable returns.

Analysis of Past Performance

Type ETF
Historic Profit 8.37%
Avg. Invested days 41
Today’s Advisory PASS
Upturn Star Rating Upturn stock ratingUpturn stock rating
Upturn Advisory Performance Upturn Advisory Performance 3.0
ETF Returns Performance Upturn Returns Performance 3.0
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn 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:

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.

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