KBW Bank ETF
ALTAR
Score™
8.4% info Recommen-
dation
SPECULATIVE
2019E    2020E
P/E
ratio
11.3x P/Sales
ratio
3.2x
P/BV
ratio
1.2x Div.
yield
2.6%


  • Description
  • Performance
  • Comps
  • premium Fundamentals
  • premium Valuation
  • premium Rating
The KBW Bank ETF, before expenses, seeks to closely match the returns and characteristics of the KBW Bank Index. The index is a float adjusted modified-market capitalization weighted index of geographically diverse companies representing national money center banks and regional banking institutions listed on U.S. stock markets.

FUND BASICS
Category US Equities
Fund Sponsor State Street Global Advisors
Website www.ssgafunds.com
Inception date Nov 15, 2005
Assets (mns) $1,753
Currency USD
Expense ratio 35 bp
Distributions Quarterly

FUND STRUCTURE
Regulation Open-Ended Fund
Custodian State Street Bank & Trust
Weighting Equal
Index replication Full
Uses derivatives No
Options available Yes

SECTOR BREAKDOWN

 


CONSTITUENT BREAKDOWN
No. of constituents 91
Wgt avg mkt cap (mns) $32,571
Large cap (>$10bn) 36.4%
Mid cap ($2-10bn) 58.1%
Small cap (<$2bn) 5.5%
Developed mkts 100.0%
Emerging mkts 0.0%

TOP TEN HOLDINGS
LENDINGTREE, INC. 1.9 %
FIRST REPUBLIC BANK/CA 1.9 %
MGIC INVESTMENT CORP 1.8 %
ZIONS BANCORPORATION 1.8 %
WELLS FARGO & CO 1.8 %
BANK OF AMERICA CORP 1.8 %
PNC FINANCIAL SERVICES GROUP 1.8 %
JPMORGAN CHASE & CO 1.8 %
NORTHERN TRUST CORP 1.8 %
AXA EQUITABLE HOLDINGS, INC. 1.8 %
Total 18.0 %

TOP COUNTRY EXPOSURE
UNITED STATES 96.5 %
PUERTO RICO 1.8 %
BERMUDA 1.5 %








HISTORICAL PERFORMANCE info

  Custom date range Compare to  
  thru


Standardized Annual Returns (thru October 31)
Year-to-date 1 year 5 years 10 years Since Incep.
20.3% 5.6% 7.9% 9.5% 1.1%

Market Correlations
versus... Beta R-squared
S&P500 1.51 61%
MSCI EAFE 1.10 28%
MSCI Emg. Mkts. 0.65 16%

Technical Indicators
Recent close $45.71
30d moving avg. $44.82
Annualized volatility 23.3%
Short interest (ETF) 9.5%
Short interest (Underlying) 4.4%
Relative strength (RSI) 72

Liquidity measures
Avg. volume (thou.) 1,565
Turnover 4.1%
Bid/Ask (% of price) 0.03%
ADV underlying (mns) $8,309

Distributions


FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the KBW Bank ETF ETF based on the alternatives' overlap in portfolio holdings with KBE. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker: KBE Expense: 35 bp ALTAR Score™: 8.4%


ALTERNATIVE ETFs BASED ON OVERLAP WITH KBE
Ticker Fund
Name
Overlap1
vs KBE
(%)
Expense
ratio
(bp)
Savings
vs KBE
(bp)
ALTAR
Score™
(%)
ALTAR
vs KBE
(%)
KRE SPDR KBW Regional Banking 74.2 35 0 8.3 -0.1
IAT iShares DJ US Regional Banks 54.7 42 -7 7.6 -0.8
FTXO First Trust Nasdaq Bank 46.5 60 -25 7.8 -0.5
KBWR Invesco KBW Regional Bank 42.3 35 0 8.7 +0.3
KBWB Invesco KBW Bank Portfolio 36.4 35 0 7.7 -0.6
RYF Invesco S&P Equal Weight Financials 32.0 40 -5 7.5 -0.9
QABA First Trust NASDAQ ABA Community Bank 30.8 60 -25 8.2 -0.1
IEFN iShares Evolved U.S. Financials 27.3 18 17 7.4 -0.9
FXO First Trust Financial Alphadex 27.3 63 -28 8.0 -0.4
JHMF John Hancock Multifactor Financials 27.1 40 -5 6.7 -1.7
IYG iShares DJ US Financial Services 25.9 42 -7 6.5 -1.9
FNCL Fidelity MSCI Financials 24.3 8 27 7.4 -0.9
VFH Vanguard Financials 24.1 10 25 7.4 -0.9
XLF Financials Select Sector SPDR 19.6 13 22 7.1 -1.3
CLRG IQ Chaikin U.S. Large Cap 19.1 25 10 8.2 -0.2
IYF iShares DJ US Financials 18.7 42 -7 6.2 -2.2
RWW Invesco S&P Financials Revenue 16.4 45 -10 7.4 -0.9
JKL iShares Morningstar Small Cap Value 16.2 30 5 9.1 +0.8
PY Principal Shareholder Yield 16.1 29 6 8.1 -0.3
FNK First Trust Mid Cap Value AlphaDEX 15.2 70 -35 9.2 +0.8

1Overlap is the percentage of holdings by weight that are identical. For example, if Fund A has a 2% position in Apple, Inc. (AAPL) and Fund B has a 5% position, their overlapping position in AAPL is 2%.

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RESULTS & ESTIMATES

  2014 2015 2016 2017 2018 2019E 2020E
Sales per share ** ** ** ** ** ** **
Earnings per share ** ** ** ** ** ** **
Dividends per share info ** ** ** ** ** ** **
Book value per share ** ** ** ** ** ** **

 

Sales per share growth   **% **% **% **% **% **%
EPS growth   **% **% **% **% **% **%

Sales per share growth   **% **% **% **% **% **%
EPS growth   **% **% **% **% **% **%

OTHER FUNDAMENTAL METRICS

Long term EPS growth est. **%   Debt-to-equity **x
Asset turnover **%   Assets-to-equity **x

Return on equity

Revision activity*
*Six months ago = 100

Net margins

Compound annual growth rates

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VALUATION METRICS
  2018 2019E 2020E
Price-to-sales ** ** **
Price-to-earnings ** ** **
Price-to-cash flow ** ** **
Price-to-growth ** ** **
Price-to-book value ** ** **
Yield ** ** **

Historical valuation trends

Forward
multiple:
KBW Bank ETF
Relative
to:
S&P500 MSCI EAFE MSCI Emg. Mkts. Other ETF:

SPECULATIVE

Deeply undervalued but risky. A rating of SPECULATIVE is assigned to ETFs with ALTAR Scores in the top quintile (the top 20%) of their category, indicating exceptional appreciation potential. However, often these are narrowly-focused funds or in industries with structural issues, which may also make them very risky. Nonetheless they may still be useful as part of a well-diversified portfolio.

ALTAR Score™


Calculation of ALTAR Score™
Avg. Return on Equity 9.9 %
Divided by: Fwd. P/BV 1.1 x
Less: Expense ratio 35 bp
Equals: ALTAR Score 8.4 %
info More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS
COMPOSITE
RATING
1.60 CATEGORY
AVERAGE
1.55
 
The composite rating is a weighted average of analysts' consensus recommendations for individual ETF constituents, based on the following scale:

BUY = 1; OVERWEIGHT = 1.5, HOLD = 2; UNDERWEIGHT = 2.5; and SELL = 3.

Readers are cautioned that because analyst ratings tend to be inflated, the composite score may be more useful as a relative measure of sentiment between funds rather than as a stand-alone recommendation.
 

 

See RATING tab for calculation of ALTAR Score™
Risk & reward. Uses std. dev. as proxy for risk, ALTAR Score™ for return forecast.
Dividends paid by constituents to the fund. May differ from actual distributions to shareholders due to constituent changes, timing issues or other factors.
Monthly returns based on changes in price plus dividends. May differ from daily returns reported by funds. See below for standardized returns.