Bank ETF Showdown: Invesco Crushes iShares
Key takeaways
- IVZ ^GSPC Invesco KBW Bank ETF (NASDAQ:KBWB) offers broader exposure to major U.S. money center banks and national institutions, while i Shares U.S.
- These ETFs allow investors to target the financial sector with differing levels of specificity.
- Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns.
IVZ ^GSPC Invesco KBW Bank ETF (NASDAQ:KBWB) offers broader exposure to major U.S. money center banks and national institutions, while i Shares U.S. Regional Banks ETF (NYSEMKT:IAT) provides a more concentrated bet on the domestic regional banking sector.
These ETFs allow investors to target the financial sector with differing levels of specificity. While both concentrate on bank equities, their underlying indexes select and weigh holdings differently, leading to variations in liquidity, price volatility, and total returns. With assets under management (AUM) exceeding $6 billion, KBWB offers deeper liquidity than the smaller IAT.
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.