Banking and broad spectrum financial-based exchange traded funds showed strength in Monday's early trading after they received a boost from Q3 earning figures delivered by Bank of America ( BAC ).
There are 241 ETFs that have ownership in BAC but the Invesco KBW Bank ETF ( NASDAQ: KBWB ), iShares U.S. Financial Services ETF ( NYSEARCA: IYG ), Financial Select Sector SPDR Fund ( NYSEARCA: XLF ), and the Vanguard Financials ETF ( NYSEARCA: VFH ) are the four largest holders.
KBWB has a 7.91% stake in the financial firm, while IYG, XLF, and VFH have 6.65%, 6.35%, and 5.50% portfolio weightings towards BAC, respectively.
BofA rose 5.6% early in Monday's action following the release of its quarterly results. Helped by this advance, KBWB gained 2.8% . Also on the rise were IYG +3% , XLF +2.6% , and VGF +2.4% .
While banking and financial funds pushed higher on Monday, they remain sharply lower for 2022 as a whole. Year-to-date KBWB is -25.3% , IYG -24.7% , XLF -19.1% , and VFH is -19.9% . Additionally, BAC is also lower in 2022 by 27.2% .
Bank of America’s stock price picked up ground after the financial institution posted Q3 earnings that exceeded Wall Street estimates. BAC is up thanks to rising interest rates, a strong consumer and global banking units and fairly stable global markets revenue. The bank increased its provision for bad debt as it built reserves in preparation for a weaker economy.
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Banking & Financial ETFs get a boost thanks to Bank of America earnings