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Regional Banking ETF (KBWR) Hits New 52-Week High
Invesco KBW Regional Banking ETF (KBWR - Free Report) is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and moved up 46.47% from its 52-week low price of $39.9/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.
KBWR in Focus
The underlying KBW Nasdaq Regional Banking Index is a float-adjusted, equal capitalization-weighted index comprising securities of 50 mid-cap banking companies that are publicly listed in the United States. The product charges 35 bps in annual fees (see: all Financials ETFs ).
Why the Move?
Regional banking has been an area to watch lately, given the surge in the expectations of an interest rate cut in September. Recent favorable inflation data makes a rate cut in September highly likely, prompting two rate cuts this year. This should steepen the yield curve and benefit the fund.
The rising likelihood of Donald Trump winning the upcoming presidential elections also boosts the prospects of the regional banking sector.
More Gains Ahead?
Currently, KBWR has a Zacks ETF Rank #4 (Sell) and High risk outlook. However, it might continue its strong performance in the near term, with a positive weighted alpha of 22.60 (as per Barchart.com), which gives cues of a further rally.