Although Utah-based Zions was the only one of 30 banks to fail the Fed’s stress tests, regional bank dividend growth is expected to be solid following the CCAR results. The The PowerShares KBW Bank Portfolio (NYSEArca: KBWB) features an almost 3.9% weight to Zions.[Zions Stress Test Failure not Hurting These ETFs]
KBWB allocates a combined 46% of its weight to BofA, J.P. Morgan, Citi, Wells Fargo, Sun Trust , Regions and Zions, according to PowerShares data.
The iShares US Broker-Dealers ETF (NYSEArca: IAI) has one of the more notable weights to Morgan Stanley at 6.3%, the same as the ETF allocates to Goldman Sachs (NYSE: GS). Dividend growth would be appreciated by IAI shareholders as the ETF has a trailing 12-month yields of just 1.1%, but the fund was the best financial services in 2013 with a gain of almost 66%. [Broker Dealer ETF Rises With no Aide From Goldman]
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