Invesco’s wide-ranging bank ETFs are among the top-performing equity ETFs over the past week.
Bank stocks rallied this week after reporting upbeat second-quarter earnings. The Invesco KBW Regional Banking ETF (KBWR), the Invesco KBW Bank ETF (KBWB), and the Invesco KBW Property & Casualty ETF (KBWP) are included in this week’s list of best-performing equity ETFs over a one-week period, according to LOGICLY.
“Banks have reported stronger-than-expected second-quarter earnings this past week,” Todd Rosenbluth, head of research at VettaFi, said. “Investor confidence that positive fundamentals will occur in the second half has pushed stocks higher.”
KBWR provides exposure to regional banks. The fund is up 8.8% over a one-week period. The fund has partially recouped losses after plummeting during the banking crisis in mid-March, but is still down 12.2% year-to-date. KBWR is down 10.5% over a one-year period.
KBWB offers exposure to banks, delivering targeted exposure to a unique corner of the U.S. financials sector. KBWB is up 7.6% over a one-week period. The fund is down 10.5% year-to-date, as KBWB was also impacted by the March selloff. The fund is down 10.9% over a one-year period.
KBWP provides exposure to the property and casualty subsegment of the financials sector. The fund is up 5.4% in the past week but down 1.6% year-to-date. KBWP is up 10.9% over a one-year period.
Bank stocks rallied this week on earnings. Goldman Sachs (GS) missed analyst estimates on profit, but Wall Street celebrated CEO David Solomon’s upbeat outlook. On a call with analysts on Wednesday, Solomon said that mergers and equity capital markets activity was picking up and he was beginning to see “signs of life” in the investment banking business.
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