Why Bank ETFs Are Outperforming the Market

Bank stocks have seen a surge in investor interest lately. The Financials sector is one of the best-performing sectors year to date, up about 6.6%, just slightly behind Communication Services, which has gained 6.8%.After an aggressive regulatory agenda under the Biden administration, banks are now poised to benefit from lighter regulatory scrutiny under the new administration. JPMorgan JPM CEO Jamie Dimon remarked that many bankers were “dancing in the street” after Trump’s victory.Relaxed capital rules have also provided a boost to bank stocks. Additionally, analysts expect a revival in M&A and IPO activity, which would benefit large banks.The biggest banks in the U.S. recently reported impressive results, and management commentary was notably optimistic.The Financial Select Sector SPDR Fund XLF is the largest and one of the cheapest ETFs in the space. Berkshire Hathaway (BRK.B) and JPMorgan are its top holdings.The Invesco KBW Bank ETF (KBWB) holds large money center banks, regional banks, and thrift institutions. It has been the best-performing product in the sector over the past year. JPMorgan, Goldman Sachs GS and Morgan Stanley MS are among the top holdings in the fund.The SPDR S&P Regional Banking ETF KRE tracks an equal-weighted index of regional banks.To learn more about these ETFs, please watch the short video above.Want key ETF info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Goldman Sachs Group, Inc. (GS): Free Stock Analysis Report JPMorgan Chase & Co. (JPM): Free Stock Analysis Report Morgan Stanley (MS): Free Stock Analysis Report Berkshire Hathaway Inc. (BRK.B): Free Stock Analysis Report Financial Select Sector SPDR ETF (XLF): ETF Research Reports SPDR S&P Regional Banking ETF (KRE): ETF Research ReportsTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks