Equity: U.S. Banks
With 7 ETFs and over $3.43B in combined AUM, the Equity: U.S. Banks segment provides exposure to the U.S. space with a focus on Financials securities.
Year-to-date, the best-performing ETF in the segment is the First Trust NASDAQ ABA Community Bank Index Fund (QABA), with a total return of -31.81%. Meanwhile, the most popular ETF is the SPDR S&P Bank ETF (KBE) with $1.25BB in assets under management.
Investors should take a look at the iShares U.S. Regional Banks ETF (IAT). This fund has been chosen as an Analyst Pick by FactSet, thus is the best ETF for the average investor. IAT tracks the performance of an index of small- and midcap regional banks. IAT has an expense ratio of 0.42% and tracks the DJ US Select / Regional Banks.
ETF.com Efficiency Insight
The average efficiency score in the Equity: U.S. Banks segment is 88 out of 100, with the Invesco KBW Bank ETF(KBWB) obtaining the highest rating of 92 out of 100.
Costs dominate the discussion around efficiency. ETFs in the segment have an average expense ratio of 0.43% per year, with the Invesco KBW Regional Banking ETF (KBWR) having the lowest expense ratio, charging investors 0.35% yearly.
Investors should look for funds with tight tracking, such as the SPDR S&P Regional Banking ETF (KRE), with a 12-month median tracking difference of -0.12%.
ETF.com Tradability Insight
The average tradability score in the Equity: U.S. Banks segment is 85 out of 100, with the SPDR S&P Bank ETF(KBE) obtaining the highest rating of 99 out of 100.
The SPDR S&P Regional Banking ETF (KRE) is the undisputed segment leader when it comes to liquidity. The fund trades 419.12M in daily average volume. Investors should also find ample liquidity in the SPDR S&P Bank ETF (KBE), with $111.87M in daily dollar volume.
Use limit orders to trade funds such as the Invesco KBW Regional Banking ETF(KBWR), due to their double-digit market spreads.
ETF.com Fit Insight
The Thomson Reuters US Banks has been selected as the index that most accurately represents the market in question. The benchmark has been selected by the ETF Analytics team at FactSet, according to a series of guidelines to ensure this index accurately captures its market.
Investors trying to match a broad market exposure should pay attention to KBWB. This fund obtains a high Fit score and investors should capture market-like returns.
Other funds diverge from the market, by nature of their investment mandates; for example, QABA follows a Exchange-specific strategy and obtains a low Fit score compared with our neutral benchmark.