Investing in bank stocks provides exposure to the financial sector and, traditionally, the opportunity to earn dividends from relatively stable compan🐽ies that operate in a highly regulated industry. However, banking stocks currently face challenges from downturns in the economy, increasing funding costs, and tightening regulations.
Better performing bank-themed exchange-traded funds (ETFs) to consider for the fourth quarter hold a portfolio of some of the nation's largest banks. Below, we outline three relatively well-performing bank ETFs, excluding inverse and leveraged ETFs and funds with less than $50 million in 澳洲幸运5开奖号码历史查询:assets under management (AUM). All data below is as of Dec. 14.
Key Takeaways
- Investing in top bank ETFs usually provides exposure to the financial sector and a chance to earn 澳洲幸运5开奖号码历史查询:dividends from relatively stable companies that operate in a regulated industry.
- KBE is the best performing bank ETFs versus its benchmark. It has $1.5 billion in assets under management and a -4% return over the past 12 months.
- FTXO has declined 9% over the last 12 months and has AUM of $141 million.
- KBWB has net assets of $1.4 billion and returned -10% over the past year.
澳洲幸运5开奖号码历史查询:SPDR S&P Bank ETF (KBE)
- Performance Over 1 Year: -4%
- Expense Ratio: 0.35%
- Annual Dividend Yield: 3.36%
- Three-Month Average Daily Volume: 2,899,178
- Assets Under Management: $1.5 billion
- Inception Date: Nov. 8, 2005
- Issuer: State Street Global Advisors
This ETF seeks to provide similar returns to the S&P Banks Select Industry Index, an 澳洲幸运5开奖号码历史查询:equal-weight benchmark comprising U.S. banking companies. KBE provides exposure to banking sub-industries, such as asset management, custody, regional banking, and mortgage finance.
KBE's top three holdings include Bank of Hawaii Corp. (BOH) a regional financial services company, Western Alliance Bancorp. (WAL) which is a holdings company that provides online banking products, and Columbia Banking System Inc. (COLB) a financial service for primarily small businesses.
澳洲幸运5开奖号码历史查询:First Trust NASDAQ Bank ETF (FTXO)
- Performance Over 1 Year: -9%
- Expense Ratio: 0.60%
- Annual Dividend Yield: 3.61%
- Three-Month Average Daily Volume: 33,385
- Assets Under Management: $141 million
- Inception Date: Sept. 20, 2016
- Issuer: First Trust
The fund, which rebalances quarterly, has an investment objective to deliver a return that corresponds to the Nasdaq US Smart Banks Index, a benchmark consisting of U.S. banking companies selected by 澳洲幸运5开奖号码历史查询:liquidity, volatility, value, and growth factors.
FTXO's top three holdings includes U.S. Bancorp (USB) which is a large financial services company, Wells Fargo & Co. (WFC) they provide wholesale, community, and investment financial services, and Citigroup Inc. (C) which is a company that provides businesses, individuals, and other institutions with a wide range of financial services.
Invesco KBW Bank ETF (KBWB)
- Performance Over 1 Year: -10%
- Expense Ratio: 0.35%
- Annual Dividend Yield: 3.42%
- Three-Month Average Daily Volume: 1,028,828
- Assets Under Management: $1.4 billion
- Inception Date: Nov. 1, 2011
- Issuer: Invesco
KBWB aims to track the performance of the KBW Nasdaq Bank Index, a modified market-capitalization-weighted benchmark comprising large national U.S. banks, 澳洲幸运5开奖号码历史查询:regional banks, and thrift institutions.
KBWB's top three holdings include Morgan Stanley (MS) which provides investment products and services, Wells Fargo & Co. (WFC), and Goldman Sachs Group Inc. (GS), which is a global investment and financial services company.
The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our 澳洲幸运5开奖号码历史查询:warranty and liability disclaimer for more info.
As of the date this article was written, the author does not own any of the above ETFs.
Do you have a news tip for Investopedia reporters? Please email us at 澳洲幸运5开奖号码历史查询:tips@hxmklzzmallshg.com