Financials stocks had unperformed the broader indexes earlier this year due to concerns that the Fed’s aggressive tightening campaign to tame inflation would push the economy into a recession.

Results reported by six biggest US banks suggested that the economy could manage a “soft landing” while the Fed raises rates. Investors closely watch bank earnings since they are a good indicator of the health of the broader economy, consumers, and businesses.

Bank stocks have rebounded since mid-June as some investors believe that much of the bad news is already priced in and valuations look attractive at current levels.

The Financial Select Sector SPDR Fund (XLF Quick QuoteXLF - Free Report) is the most popular and one of the cheapest products in the space. It holds S&P 500 financial stocks. Berkshire Hathaway (BRK.B Quick QuoteBRK.B - Free Report) , JPMorgan Chase & Co. (JPM Quick QuoteJPM - Free Report) and Bank of America (BAC Quick QuoteBAC - Free Report) and are its top holdings.

The SPDR S&P Regional Banking ETF (KRE Quick QuoteKRE - Free Report) tracks an equal-weighted index of regional banks. The Invesco KBW Bank ETF (KBWB Quick QuoteKBWB - Free Report) holds large money centers, regional banks & thrift institutions.

To learn more about these ETFs, please watch the short video above.