Invest in the Bank Industry With ETFs

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ETFs are a great way to invest in a specific industry without having to corner the market on all the stocks in that sector. And as you know, there are many advantages to investing in an industry ETF instead of trying to manipulate an index basket. So if you have an interest in a sector like the banking industry, a bank ETF may be the way to go.

There are various bank ETFs to choose from for your investing strategy. From regional bank funds to SPDRs, there is most likely one to fit your specific needs. However, make sure you conduct proper research, inspect the holdings of each ETF and watch how they react to different market conditions.

And one of the best advantages of ETFs is the way these assets are taxed as opposed to other investment choices.

Bank ETFs and ETNs

  • IAT - iShares U.S. Regional Banks ETF
  • KBE - SPDR S&P Bank ETF
  • KBWB - Invesco KBW Bank ETF
  • KBWR - Invesco KBW Regional Banking ETF
  • KRE - SPDR S&P Regional Banking ETF
  • QABA - First Trust NASDAQ ABA Community Bank Index Fund
  • DPST - Direxion Daily Regional Banks Bull 3X Shares

And some of the Bank funds on this list are leveraged funds, so if you are looking for that type of ETF...


  • DPST - Direxion Daily Regional Banks Bull 3X Shares

Keep in mind that leveraged and inverse ETFs are not for the faint of heart, they are more for advanced traders with complex investing strategies, not beginner investors. So if you are looking for these types of funds, please take a close look at the pros and cons and how they work.

But the above lists should have you covered for any investing strategy you want to utilize with banking funds, hopefully utilizing exchange-traded products.

And as with any investment, a company stock, mutual fund, an ETF, Index or, otherwise, please make sure you thoroughly research this exchange-traded fund or any financial asset before making any trades (long or short). Conduct your due diligence, watch how these funds react to different market conditions, take a look under the hood and see what's in the funds. And if you have any questions or concerns, make sure you consult a stockbroker, a financial advisor, or another financial industry professional.

While ETFs have many advantages, they have many disadvantages as well (as does any investment). So it is very important to understand the investment vehicle before you trade it. But once you have a full understanding of these bank ETFs, you can consider adding either or both to your portfolio. And good luck with all of your trades.

Disclaimer: At the time of publication of this ETF list of bank ETFs, I do not have any open positions in the above banking funds and notes.

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  1. U.S. Securities and Exchange Commission. "Mutual Funds and Exchange-Traded Funds (ETFs) – A Guide for Investors."

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