ultramarine5
Banks and broad-spectrum finance-based exchange-traded funds showed strength in early trading Monday after they received a boost from Q3 earnings numbers provided by Bank of America (BAC).
There are 241 ETFs with ownership in BAC but the Invesco Bank KBW ETF (NASDAQ:KBWB), iShares US Financial Services ETF (NYSEARCA:IYG), SPDR Fund for Financial Options Area (NYSEARCA:XLF), and the Vanguard Financials ETF (NYSEARCA:VFH) are the four largest holders.
KBWB has a 7.91% stake in the financial company, while IYG, XLF and VFH have portfolio weights of 6.65%, 6.35% and 5.50% respectively for BAC.
BofA rose 5.6% early Monday following the release of quarterly results. Supported by this progress, KBWB has achieved 2.8%. Also trending up is IYG + 3%XLF + 2.6%and VGF + 2.4%.
While financial and banking funds edged higher on Monday, they are still far lower for the full year of 2022. KBWB year to date is the -25.3%IYG -24.7%XLF -19.1%and VFH is -19.9%. In addition, BAC is also lower in 2022 by 27.2%.
Bank of America’s stock price rose after the financial institution posted third-quarter earnings that beat Wall Street estimates. BAC moved up on the back of rising interest rates, strong consumer and global banking units, and relatively stable global market revenue. The bank increased provision for bad debts because it had accumulated provisions in prepare for a weaker economy.
