Roundhill Investments announced the launch of the Roundhill BIG Bank ETF (BIGB), which begins trading today on the NASDAQ. BIGB is designed to provide concentrated and cost-efficient exposure to the largest and most liquid U.S. bank stocks.
Rather than track a large, diversified basket of companies within the banking sector, BIGB provides a more targeted, specific exposure to the six largest U.S. banks: Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley, and Wells Fargo.
The fund will employ an equal weighting, rebalance quarterly, and reconstitute on an annual basis. BIGB carries an expense ratio of 0.29%.
“In the wake of banking failures at Silicon Valley Bank, Signature Bank of New York, and Silvergate, individuals and institutions alike are migrating banking relationships to the institutions deemed too big to fail,” said Dave Mazza, chief strategy officer at Roundhill. “BIGB allows investors to achieve exposure to these money center banks without the potential exposure to smaller financial services companies such as regional banks, brokerages, and insurance companies found in existing financial ETFs.”
In addition to the launch of BIGB, Roundhill plans to introduce its suite of “BIG ETFs” in the coming weeks, including the Roundhill Big Tech ETF (BIGT), the Roundhill Big Airlines ETF (BIGA), and the Roundhill Big Defense ETF (BIGD), which target the largest companies in technology, airlines, and defense, respectively.
“Recent market developments have reinforced what we have been hearing from investors for years about the challenges of existing sector ETFs. Roundhill’s BIG ETFs offer investors precise access to the most important companies in specific economic sectors,” Mazza added. “Our new BIG ETFs empower investors to make pinpoint decisions without worrying about the dilutive exposure found in many sector ETFs today, while also potentially mitigating single stock risk.”
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