Bank of America and JPMorgan, though, only passed provisionally and could still fail later if it does not rectify problems that the Fed identified. On the other hand, Deutsche Bank’s American units and Santander of Spain failed the tests.

Looking at the range of ETF options to gain diversified exposure to the space, IAI includes a heavy weight in investment banks like Goldman Sachs and Morgan Stanley, but it also includes other positions in discount brokerages and stock exchanges.

KBWB features a more targeted play on U.S. banks, with a heavier emphasis on the largest players like Wells Fargo, Citigroup, JPMorgan and Bank of America. [An ETF Idea for Rising Bank Dividends]

Lastly, XLF takes a broader view of the financial sector, including sub-sectors like insurance, real estate investment trusts, and capital markets. Nevertheless, the financial sector ETF is still includes heavy positions in large banks like Wells Fargo, JPMorgan and BofA.

For more information on the financial sector, visit our financial category.

Max Chen contributed to this article.