Consequently, Mike Mayo, analyst at CLSA, believes the dovish stance will cost US banks about $5 billion, reports Alistair Gray for the Financial Times.


XLF includes a 33.7% tilt toward the banking sector.

To track more targeted bank sector plays, the SPDR S&P Bank ETF (NYSEArca: KBE) and PowerShares KBW Bank Portfolio (NYSEArca: KBWB) lean toward large banks. KBWB follows a market cap-weighted index, which make the index heavy on prominent banking names. KBE, on the other hand, tracks an equal-weight indexing methodology, so the ETF will include a greater tilt toward mid-cap banks. Year-to-date, KBE fell 10.0% and KBWB declined 11.3%.

Financial Select Sector SPDR