2023-03-21 10:21:20 ET
Roundhill Investments announced the launch of the Roundhill BIG Bank ETF ( NASDAQ: BIGB ) which aims to offer investors exposure to the largest and most liquid U.S. bank stocks on the market.
Dave Mazza, Chief Strategy Officer at Roundhill stated: "In the wake of banking failures at Silicon Valley Bank, Signature Bank of New York, and Silvergate, individuals and institutions alike are migrating banking relationships to the institutions deemed too big to fail."
Mazza added: "BIGB allows investors to achieve exposure to these money center banks without the potential exposure to smaller financial services companies such as regional banks, brokerages, and insurance companies found in existing financial ETFs."
From a holdings stance, BIGB is a concentrated fund that only has six holdings which in turn are the six largest U.S. banks including the likes of Goldman Sachs ( GS ), Morgan Stanley ( MS ), JPMorgan ( JPM ), Bank of America ( BA ), Citigroup ( C ), and Wells Fargo ( WFC ).
From an expense ratio stance, BIGB comes attached with a ratio of 0.29%.
Moreover, at some level BIGB will also be fighting for market share against other ETFs such as the Invesco KBW Bank ETF ( KBWB ) and the SPDR S&P Bank ETF ( KBE ).
More on the bank crisis
- First Republic Bank: 4 Reasons To Buy
- Goldman expected to make $100M from buying SVB assets last week
- First Republic cut to junk at Moody's
For further details see:
Amid banking crisis, new ETF offers exposure only to the 6 largest and most liquid banks