Bank ETFs are performing well due to lighter regulations and positive earnings reports.

From Zacks Investment Research: 2025-02-12 17:24:08

Bank stocks have surged in investor interest, with the Financials sector up 6.6% year to date. Lighter regulatory scrutiny under the new administration and relaxed capital rules have boosted bank stocks. Analysts expect a revival in M&A and IPO activity. The biggest U.S. banks reported impressive results, with optimistic management commentary. The Financial Select Sector SPDR Fund (XLF) is the largest and cheapest ETF in the space, with top holdings in Berkshire Hathaway and JPMorgan. The Invesco KBW Bank ETF (KBWB) has been the best-performing product in the sector. SPDR S&P Regional Banking ETF (KRE) tracks an equal-weighted index of regional banks.



Read more at Zacks Investment Research: Why Bank ETFs Are Outperforming the Market – February 12, 2025