KBWR - ETF AI Analysis

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Invesco KBW Regional Banking ETF (KBWR)

Rating:75Outperform

Price Target:―

KBWR, the Invesco KBW Regional Banking ETF, has an overall rating that reflects generally solid quality driven by many regional banks with strong financial performance and supportive earnings call sentiment. Standout holdings like Old National Bancorp, SouthState Corporation, and Atlantic Union Bankshares contribute positively through robust profitability, reasonable valuations, and bullish or stable technical trends, often reinforced by dividends and strategic growth initiatives. The main risk factor is that the fund is concentrated in regional banks, where some names such as Cadence Bank show cautionary technical signals and liquidity concerns that can introduce added volatility.

Positive Factors

Solid Recent Performance

The ETF has shown steady gains over the past three months and year-to-date, indicating improving momentum in regional bank stocks.

Strong Top Holdings

Many of the largest positions, such as Webster Financial, UMB Financial, and Cadence Bank, have delivered strong year-to-date performance, helping support the fund’s returns.

Moderate Expense Ratio

The fund’s expense ratio is reasonable for a specialized sector ETF, allowing investors to gain targeted exposure to regional banks without very high ongoing costs.

Negative Factors

Heavy Sector Concentration

Almost all of the ETF’s assets are in the financial sector, so its performance is highly sensitive to conditions affecting banks and financial companies.

Limited Geographic Diversification

With nearly all holdings in U.S. companies, the fund offers little protection if the U.S. financial system or economy faces stress.

Small Asset Base

The ETF manages a relatively small amount of assets, which can sometimes lead to wider trading spreads and a higher risk that the fund could be closed in the future.

KBWR vs. SPDR S&P 500 ETF (SPY)

AUM51.76M

RegionNorth America

Expense Ratio0.35%

Beta0.95

IssuerInvesco

Inception DateNov 01, 2011

Dividend Yield2.4%

Asset ClassEquity

Index TrackedKBW Nasdaq Regional Banking Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume4,512

30 Day Avg. Volume4,949

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

76.33

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering50

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

KBWR Summary

The Invesco KBW Regional Banking ETF (KBWR) tracks the KBW Nasdaq Regional Banking Index, focusing on U.S. regional banks rather than big national giants. It holds a basket of local and mid-sized banks such as Webster Financial and Wintrust Financial, which lend to households and small businesses across different parts of the country. Someone might invest in KBWR to get diversified exposure to many regional banks in a single investment, potentially benefiting from growth in local economies. A key risk is that it is heavily concentrated in bank stocks, so it can be hit hard by interest rate changes and financial sector downturns.

How much will it cost me?The Invesco KBW Regional Banking ETF (KBWR) has an expense ratio of 0.35%, which means you’ll pay $3.50 per year for every $1,000 invested. This expense ratio is slightly higher than average because the fund is focused on a specific niche—regional banks—and requires more active management compared to broad-market index ETFs. It’s a reasonable cost for investors seeking targeted exposure to this sector.

What would affect this ETF?The KBWR ETF, focused on U.S. regional banks, could benefit from economic growth in local communities, increased lending activity, and favorable interest rate environments that boost bank profitability. However, it may face challenges from rising interest rates, regulatory changes, or economic slowdowns that could impact loan demand and credit quality. Additionally, its heavy reliance on the financial sector makes it vulnerable to sector-specific risks.

KBWR Top 10 Holdings

KBWR is essentially a pure play on U.S. regional banks, so financials are firmly in the driver’s seat. Recent strength from names like Cadence Bank, Axos Financial, and Bok Financial has given the fund a helpful tailwind, as these rising regional lenders benefit from solid earnings and upbeat sentiment. Webster Financial and Wintrust Financial are also pulling their weight with steady gains. On the flip side, SouthState and Old National look more mixed, occasionally losing steam and tempering returns, but not enough to derail the fund’s overall positive tone.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
WBS	Webster Financial	4.32%	$2.90M	$11.68B	25.20%	77 Outperform
SSB	SouthState Corporation	3.86%	$2.59M	$10.42B	2.22%	79 Outperform
WTFC	Wintrust Financial	3.81%	$2.56M	$10.39B	19.15%	78 Outperform
ONB	Old National Bancorp Capital	3.60%	$2.42M	$9.73B	3.84%	80 Outperform
UMBF	UMB Financial	3.55%	$2.38M	$9.71B	14.70%	77 Outperform
BPOP	Popular	2.25%	$1.51M	$9.73B	38.37%	77 Outperform
BOKF	Bok Financial	2.13%	$1.43M	$8.44B	22.10%	73 Outperform
UBSI	United Bankshares	2.13%	$1.43M	$6.17B	19.85%	80 Outperform
AX	Axos Financial	2.12%	$1.42M	$5.54B	42.38%	78 Outperform
AUB	Atlantic Union Bankshares	2.12%	$1.42M	$5.70B	8.60%	79 Outperform

KBWR Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

65.46

Positive

100DMA

62.15

Positive

200DMA

60.19

Positive

Market Momentum

MACD

1.19

Positive

RSI

56.35

Neutral

STOCH

31.84

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For KBWR, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 68.04, equal to the 50-day MA of 65.46, and equal to the 200-day MA of 60.19, indicating a bullish trend. The MACD of 1.19 indicates Positive momentum. The RSI at 56.35 is Neutral, neither overbought nor oversold. The STOCH value of 31.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KBWR.

KBWR Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
KBWR	―	―	$51.76M	0.35%	―
QABA	―	―	$81.26M	0.60%	―
PFI	―	―	$54.83M	0.60%	―
GABF	―	―	$50.81M	0.32%	―
FBDC	―	―	$36.08M	13.69%	―
PSCF	―	―	$23.63M	0.29%	―

Performance Comparison

KBWR

Invesco KBW Regional Banking ETF

68.48

9.68

16.46%

QABA

First Trust NASDAQ ABA Community Bank Index Fund

―

PFI

Invesco DWA Financial Momentum ETF

―

GABF

Gabelli Financial Services Opportunities ETF

―

FBDC

FT Confluence BDC & Specialty Finance Income ETF

―

PSCF

Invesco S&P SmallCap Financials ETF

―

Glossary

BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―

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