How Rising Rates Could Be Huge for Regional Bank ETFs
The recent spike in Treasury yields gave regional banking assets like the
Invesco KBW Regional Banking ETF (KBWR) a big boost. Many market observers believe this corner of the banking sector is primed for more upside this year.
KBWR seeks to track the investment results of the KBW Nasdaq Regional Banking Index. 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 comprised of companies primarily engaged in U.S. regional banking activities, as determined by the index provider. The underlying index is designed to track the performance of U.S. regional banking and thrift companies that are publicly-traded in the United States.