BAC makes up 5.6% of XLF, 7.4% of IYG and 7.7% of KBWB.
“Investors should be very cautious of any red flags which surround capital planning,” Brennan Hawken, an analyst at UBS Group AG, said in a research note, cutting his share-price target for BofA.
On the other hand, financial ETFs can provide better value f the stress test results go on without a hitch. Keefe, Bruyette & Woods calculates that the bankers could pay out $98 billion in capital through dividends and share buybacks if every one of the 25 U.S. lenders in the stress test pass this year.
The first round of results are scheduled for release Thursday. The Fed will reveal the second round results on March 11.
For more information on the financial sector, visit our financial category.
Max Chen contributed to this article.