However, there is another important reason to consider bank stocks and ETFs: Rising profitability. In the case of regional banks, that profitability is expected to be enhanced if the Fed proceeds with boosting borrowing costs for the first time in nine years.

Still, technicals cannot be overlooked. XLF resides more than 17% below its 52-week high and more than 12% below its 200-day moving average. The ETF has tumbled 12% since the start of this year.

Financial Select Sector SPDR