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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 (SIX:CSGN). 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.
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