Another interesting aspect regarding KBWB, at least for smaller investors that enjoy investing alongside legends, is the ETF’s weight to stocks that are held by Warren Buffett’s Berkshire Hathaway (NYSE: BRK-A).
In addition to Wells Fargo being Berkshire’s largest equity position, the Buffett’s financial services conglomerate owns stakes in US Bancorp (NYSE: USB), Bank of America and M&T Bank (NYSE: MTB). Those four stocks combine for about 28% of KBWB’s weight. [Berkshire Lifts These ETFs]
Another element to like regarding KBWB is valuation. The ETF sports a P/E ratio of less than 14 and a price-to-book ratio of just 1.1. Those numbers on the S&P 500 are 15.7 and almost 2.5. Additionally, seven of KBWB’s top-10 holdings have boosted their dividends this year with Citigroup, Huntington Bancshares (NasdaqGS: HBAN) and Capital One (NYSE: COF) being the ETF’s dividend growth offenders to this point in 2014.
PowerShares KBW Bank Portfolio