Released Loan Loss Reserves Can Light Up Bank ETFs KBWB tracks the widely followed KBW Nasdaq Bank Index. “The Index is a modified-market capitalization-weighted index of companies primarily engaged in US banking activities. The Index is compiled, maintained and calculated by Keefe, Bruyette & Woods, Inc. and Nasdaq, Inc. and is composed of large national US money centers, regional banks and thrift institutions that are publicly traded in the US,” according to Invesco. An important factor in the 2021 case for funds such as KBWB is the release of cash set aside last year to cover bad loans. “In the coming months, banks are expected to free up tens of billions of dollars in reserves they set aside to cover soured loans—losses that still haven’t materialized a year into a pandemic that shut down swaths of the U.S. economy,” reports David Benoit for the