Bank Consolidation Could Lift This ETF

Smaller banks could make for compelling targets for larger buyers looking to expand into new markets and add deposit share.

“JMP Securities’ Christopher York notes that the Fifth Third-MB Financial deal was the largest since 2015, and it could be the first of a wave of U.S. small and mid-cap bank M&A activity, particularly among banks small- and mid-size banks with similar characteristics as MB Financial,” reports Barron’s.

KRE, which follows the S&P Regional Banks Select Industry Index, is up about 11% this year. Year-to-date, investors have added nearly $374 million to the fund.

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