How To Invest In US Regional Banks: ETFs
CapitalCube | Jun 04, 2015 01:00AM ET
Regional banks as a sector have performed well in the last 3 months. The main three ETFs in this sector NYSE:IAT, NYSE:KRE, NYSE:KBWR, NASDAQ:QABA. Given that there is a possibility of rising interest rates, regional banks are the pure play for this scenario. These banks are more focused in disbursing loans.
Price Return
When comparing them one a one month price return, KBWR tops the list giving consistent high returns as compared to its peers.
Volatility Analysis
KBWR also is more volatile as compared to the its peers. However, the volatility is not very high as compared to peers.
Relative Valuation
However QABA, takes the high scores with 31.71% of its portfolio invested in stocks with P/B above its peers.
Fudamental Analysis
When comparing on fundamentals:
IAT is a good pick with average volatility and good Operating Margins.
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