Big hitters Morgan Stanley and Bank of America reported upbeat earnings for the second quarter, lifting bank ETFs.
The (KBWB ) was up over 3% in midday trading Tuesday. KBWB tracks a modified-market cap-weighted index of companies primarily engaged in U.S. banking activities, including large national U.S. money centers, regional banks and thrift institutions.
On Tuesday, (BAC) rallied 2.5% in early trading after reporting a 19% rise in quarterly profit. The large bank earned 88 cents per share, beating analyst expectations of 84 cents per share.
Bank of America comprises 7.8% of KBWB by weight. KBWB offers the third highest weight to Bank of America across all ETFs.
While (MS) profit fell 13% from the second quarter of 2022, the bank beat analyst expectations on both revenue and earnngs per share. Wall Street celebrated, and the stock gained 4.3% in early trading Tuesday.
KBWB gives PNC and BNY Mellon weights of 4.0% and 3.9%, respectively.
Bank ETF KBWB's Recent Performance
KBWB is down 16% year to date after plummeting during the banking crisis in mid-March. Around its relative bottom, the fund was down about 24%. The fund has improved recently, climbing 2.0% in the past month.
KBWB has $1.4 billion in assets under management. The fund has accreted $96 million in net flows year to date, with $58 entering the fund last week ahead of big bank earnings.
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