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Bank ETF (KBWB) Hits New 52-Week High
Invesco KBW Bank ETF (KBWB - Free Report) is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and moved up 42.5% from its 52-week low price of $51.13/share.
Are more gains in store for this ETF? Let us take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed.
KBWB in Focus
The KBW Nasdaq Bank 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 United States. The product charges 35 bps in annual fees.
Why the Move?
Top U.S. banks recently raised Q3 dividends after passing the Fed’s stress test. JPMorgan hiked its payout to $1.50 and launched a $50B buyback. BofA, Wells, Citi, Goldman, and Morgan Stanley also boosted payouts amid strong capital levels and Fed reforms. This upbeat news from the banking sector boosted the fund KBWB.
More Gains Ahead?
The ETF KBWB might continue its strong performance in the near term, with a positive weighted alpha of 35.29, which gives cues of a further rally.