Bank ETFs cover financial institutions that are traditional depository institutions that borrow at short rates and lend at long rates. You won't see massive investment banks like Goldman Sachs or Morgan Stanley here; instead, you'll find names like Zion's Bancorp or Bank of Hawaii. Then again, there are still very large firms in this segmentâ€”names like J.P. Morgan and Wells Fargo make up a significant portion of the industry's market cap.
With 8 ETFs traded in the U.S. markets, Bank ETFs gather total assets under management of $2.41B. The average expense ratio is 0.50%. Bank ETFs can be found in the following asset classes:
The largest Bank ETF is the SPDR S&P Bank ETF KBE with $890.02M in assets. In the last trailing year, the best performing Bank ETF was the QABA at -31.52%. The most-recent ETF launched in the Bank space was the First Trust Nasdaq Bank ETF FTXO in 09/20/16.