Connect with us
Investment expert Jim Woods shows how you can diversify your portfolio with this banking fund.

archive

Banking Fund Offers Sector Diversification

Investment expert Jim Woods shows how you can diversify your portfolio with this banking fund.

The SPDR S&P 500 Bank Fund ETF (KBE) combines two different ideas into one solution.

Many exchange-traded funds (ETFs) that target a specific sector focus on well-known names to attract interest of investors. However, there are some investors who are more interested in funds that provide exposure beyond the typical large-cap stocks in the market.

KBE??s marriage of these two ideas comes as a result of its equal-weighted approach to the banking stocks it holds. This means that an investment in KBE offers easy exposure to large-, mid- and small-cap banks in significant amounts.

Admittedly, this makes the fund potentially riskier than some ETFs, but also more interesting. For instance, unlike a more focused ETF such as the SPDR S&P Regional Banking ETF (KRE), KBE offers investors access to a wide array of companies and sub-industries in its portfolio. This list includes: asset management & custody banks, diversified banks, regional banks, other diversified financial services, and thrifts & mortgage finance. Diversification is one of the most appealing points of many ETFs, and KBE is a great example of this appeal.

Click here to read the full article, “Banking Fund Offers Sector Diversification.

Newsletter Signup.

Sign up to the Human Events newsletter

Written By

Jim Woods is a freelance financial journalist specializing in the markets and the economy. He champions the cause of liberty from a secured location deep inside the Golden State.

Advertisement
Advertisement

TRENDING NOW:

Duke Prof: Islam Has ‘Clear Emphasis on the Sanctity and Dignity of Human Life’

FOREIGN AFFAIRS

Willem van Sprouse Antifa Willem van Sprouse Antifa

ICE Detention Center Attacker Was Antifa Activist.

U.S. POLITICS

Justin Trudeau Justin Trudeau

How Justin Trudeau Is Pushing Canada Further Right

FOREIGN AFFAIRS

Beto Is Using His Slave-Owning Ancestry.

U.S. POLITICS

archive

Banking Fund Offers Sector Diversification

The SPDR S&P 500 Bank Fund ETF (KBE) combines two different ideas into one solution.

Many exchange-traded funds (ETFs) that target a specific sector focus on well-known names to attract interest of investors. However, there are some investors who are more interested in funds that provide exposure beyond the typical large-cap stocks in the market.

KBE’s marriage of these two ideas comes as a result of its equal-weighted approach to the banking stocks it holds. This means that an investment in KBE offers easy exposure to large-, mid- and small-cap banks in significant amounts.

Admittedly, this makes the fund potentially riskier than some ETFs, but also more interesting. For instance, unlike a more focused ETF such as the SPDR S&P Regional Banking ETF (KRE), KBE offers investors access to a wide array of companies and sub-industries in its portfolio. This list includes: asset management & custody banks, diversified banks, regional banks, other diversified financial services, and thrifts & mortgage finance. Diversification is one of the most appealing points of many ETFs, and KBE is a great example of this appeal.

Click here to read the full article, “Banking Fund Offers Sector Diversification.

Newsletter Signup.

Sign up to the Human Events newsletter

TRENDING NOW:

Duke Prof: Islam Has ‘Clear Emphasis on the Sanctity and Dignity of Human Life’

FOREIGN AFFAIRS

Willem van Sprouse Antifa Willem van Sprouse Antifa

ICE Detention Center Attacker Was Antifa Activist.

U.S. POLITICS

Justin Trudeau Justin Trudeau

How Justin Trudeau Is Pushing Canada Further Right

FOREIGN AFFAIRS

Beto Is Using His Slave-Owning Ancestry.

U.S. POLITICS

Connect
Newsletter Signup.

Sign up to the Human Events newsletter