Still, first-quarter earnings for regional banks were tepid as seasonal factors and net interest margin issues weighed. In a recent report on the group, Goldman Sachs sounded a bullish tone on some regional banks while expressing caution on others.
Goldman sees upside potential of 14% for SunTrust (NYSE: STI), 13% for M&T Bank (NYSE: MTB), 12% for Signature Bank (NasdaqGS: SBNY) and 11% for Regionals Financial (NYSE: RF). Those stocks combine for 15% of IAT.
KRE is an equal-weight ETF where none of its 91 holdings garner a weight above 1.4%. The aforementioned stocks combine for almost 5% of KRE’s weight. KBWR, which tracks the KBW Regional Banking Index, has an almost 3% weight to Signature Bank. [Head to Bank ETFs]
PowerShares KBW Regional Banking Portfolio
