PowerShares Bank ETF Joins $1 Billion Club

With bank stocks surging, some exchange traded funds tracking the financial services sector are growing in a big way. That includes the PowerShares KBW Bank Portfolio (NASDAQ: KBWB).

KBWB tracks the widely followed KBW Nasdaq Bank Index. That index “is a modified-market capitalization-weighted index that seeks to reflect the performance of companies that do business as banks or thrifts that are publicly-traded in the US. The Index is compiled, maintained and calculated by Keefe, Bruyette & Woods, Inc. and is composed of approximately 24 companies representing leading national money centers and regional banks or thrifts,” according to PowerShares, the fourth-largest U.S. ETF sponsor.

KBWB recently joined the $1 billion in assets under management club, according to a statement from PowerShares. As of Dec. 5, KBWB had $1.06 billion in assets under management. The ETF celebrated its sixth anniversary last month.

Deregulation could also help the financial sector improve their margins. President Donald Trump’s administration has shown its eagerness in cutting back the red tape and remove some of the post-financial crisis regulations that has stifled the industry.

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