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Posted by
Two Blokes Jun 19 -
Filed in
Stock
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4 views
KBWR is currently comprised of 50 U.S. stocks whose companies are primarily engaged in the regional banking industry, as determined by an Index Committee. KBWR primarily holds small-caps, while its counterpart, KBWB, handles the larger banks. Unfortunately for KBWR shareholders, it's those larger banks that have substantially outperformed over the last 14 years. A possible reason is that small commercial banks have a much higher loan-to-deposit ratio. After a brief reprieve in 2021-2022, the average ratio is back up above 80%.
