U.S. Markets open in 5 hrs 42 mins

Bank ETF (KBWR) Hits New 52-Week High

Sanghamitra Saha
This banking ETF hit a new 52-week high. Are more gains in store for this ETF?

For investors seeking momentum, Invesco KBW Regional Banking ETF KBWR is probably on radar now. The fund just hit a 52-week high and is up about 43.7% from its 52-week low price of $42.21/share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:

KBWR in Focus   

The underlying KBW Nasdaq Regional Banking Index is a float-adjusted, equal capitalization-weighted index comprising securities of 50 mid-cap banking companies that are publicly listed in the United States. The fund charges investors 35 basis points a year in fees (see: all the Financial ETFs here).

Why the Move?

The banking corner of the financial space has been an area to watch lately especially after the Fed Stress Test. U.S. banking biggies have cleared the key Stress Test conducted by the Federal Reserve, barring the U.S. division of Credit Suisse. Regulators allowed majority of the 18 institutions to raise dividends and buy back shares. Encouraging stress test results and a string of announcements about shareholder value maximization bode well for the entire banking space.

More Gains Ahead?

Currently KBWR has a Zacks ETF Rank #2 (Buy) with a High-risk outlook.So, there is definitely still some promise for those who want to ride on this ETF a little longer.

Want key ETF info delivered straight to your inbox?

Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Invesco KBW Regional Banking ETF (KBWR): ETF Research Reports
 
To read this article on Zacks.com click here.
 
Zacks Investment Research
 
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report