Reddit Posts
BTC vs KBWB - Bitcoin's relationship with US Banks
Citi- The Trade That Is As Close To Not Being Able To Go Tits Up As It Can Get
Gain Skinemax: $500 -> $19k; Stocks & Calls & Puts, Oh My!
Mentions
Your question is a bit vague. What kind of Financial Sector? If you want a very broad US financials - there's XLF. But there are also funds that focus on banks. For example - KRE for regional banks. KBE and KBWB for larger banks. There is IAI which is primarily broker-dealers in the US.
SPDR S&P Bank ETF (KBE) SPDR S&P Regional Banking ETF (KRE) iShares U.S. Regional Banks ETF (IAT) Invesco KBW Bank ETF (KBWB) First Trust Nasdaq Bank ETF (FTXO)
You can look at KBW - that fund tracks the KBW Nasdaq Bank Index. It includes only BHCs and banks. It won't include bank tech related companies like Fiserv, Jack Henry, or FIS. It's an Invesco fund - [https://www.invesco.com/us/financial-products/etfs/product-detail?audienceType=investor&ticker=KBWB](https://www.invesco.com/us/financial-products/etfs/product-detail?audienceType=investor&ticker=KBWB) How do you define "financial related?
I like KBWB, ETF moves opposite to BTC -0.75 correlation
AIRR, infrastructure MLPX, midstream energy infrastructure KBWB, big banks KRE, regional banks IAK, insurance
Banks going parabolic. KBWB up 8% in pre market.
SOFI is doing poorly because fundamentals are extremely unattractive. It has more to do with their balance sheet. Their profitability hides enormous risk. Banks are still doing fine. Well the good ones at least. KBWB is far down from ATHs actually. But banks like JPM are doing well because economy is strong, there is still demand for lending and charge-offs / delinquencies are actually in decent shape.
My current value play is $USB. Waiting for it to return to historic highs. My value plays in 2023 we’re $TSM $USB $NDTOY $KBWB which I still hold.
What do you think about KBWB?
IWM (small cap ETF) is back to its pre-covid price in Feb 2020. KBWB (banking ETF) is back to the low set in May when bank run fears were at their peak. TLT (long term treasuries) is back to *dot com era prices from 2002*. What a crazy few years it's been.
KBWB down -2.4% too. It's really not a big deal lol. Yields up, bank assets are worth less and being repriced. That's all. Doesn't change a damn thing for them though in terms of actual profits since most are held to maturity.
How much more can the banking ETFs go down? I bought KBWB, because I thought we thought we reached a bottom.
I was arguing yesterday that PACW selling itself was a huge win for credit markets and financial stability even though there was a sell-off. Good to see market is regaining its composure and seeing the obvious. KBWB is higher than pre-PACW news now.
Nice! did something similar with KRE and KBWB but nowhere
Nice! did something similar with KRE and KBWB but nowhere near that volume (also mine are all leaps and I intend to hold the shares afterwards)
KBWB is single handedly keeping me above the market today
I would still say buy an index like IWM, which has underperformed the mega caps for a long time now and potentially has room to run. Or a banking ETF like KBWB.
I have KBWB as well, DPST was just a momentum trade as I felt they were oversold yesterday.
Why would it be mentioned? High yield doesn't equal high return. Inexperienced investors look at a yield and wow it's way higher than S&P yield of <2%, so it must be a great shortcut to high returns right? No, not only has KBWD in its history way underperformed the market, it has underperformed all major financial indices such as XLF, KRE, KBWB, PSCF. Looking at the top holdings, its pretty obvious why, it holds a lot of mortgage REITs and barely has any bank exposure, the ETF is actually more of a real estate finance ETF. Please realize that dividends do not equal return, earnings = return, and mortgage REITs are some of the worst value traps out there.
> A few weeks before that, I also told everyone to buy KBWB (banking ETF), and it's up 16% since. I've had a call on KBWB since April, and bought the stock then too. It's finally popping up, hoping to get out before commercial real estate starts dragging it down
Yeah I did, but KBWB went up but VFH seems to be stagnant. And I don't know why I got into energy stocks
Interesting how Jamie Dimon keeps yelling that the "crisis isn't over" and we should watch for the so-called storm clouds. Meanwhile JPM keeps raising their NII guidance and pumping out record profits. KBWB or big boy banks are still a solid play.
If you had the steel balls to buy the dip on the KBWB bank index in the March low, you got it at $38.92. It's now $41.22. Even with the renewed "scare" of tiny banks like PACW as well as the failure of FRC, you are STILL green.
Up 8% on my KBWB buy from two weeks ago. This banking ETF is still down 48% from ATH. I think it's smart to have a small tilt towards banks right now, given how much they've fallen. And they move prove to be a good hedge against the soaring tech sector.
Im thinking of buying FAZ, puts on KBWB, buying TBT, and/or SPY 390P for second half of June. I’ll decide by Monday.
Im thinking of buying FAZ, puts on KBWB, buying TBT, and/or SPY 390P for second half of June. I’ll decide by Monday.
KBWB. Big bank ETF. Nice dividend.
QQQ alone is up more than 2% so you can't be that risky lol. But I have positions in TQQQ and KBWB that did well.
Definitely a difference between KRE and KBWB. The banking sector overall is not a bad buy at these prices, but regionals certainly are
Ok I just opened a good sized position in KBWB, a US banking ETF. Down 51% from ATH and approaching covid lows. 4% annual yield. There's no possible way that the upside doesn't outweigh the downside at this point unless the banking industry is permanently dead.
KBWB is pretty much back to where it was in Mar 2020. How much possible downside could be left at this point? Maybe another 20%? Seems like a good time to start DCA'ing, banks aren't going anywhere in the long term...
I personally have been buying KBWB -- it mostly focuses on bigger banks. I think there is definitely value if the hysteria ends. Down 30+% for no fundamental reason
No index but ETF options: IAT & KBWB
Buying KBWB and continuing to do so. It’s free money. It will recover and the dividends are strongggg
Anyone buying KBWB or other bank stocks/ ETFs?
You can also look at bank ETFs if you have a long thesis on banks. For example - $KRE for regional banks or $KBWB which tracks KBW bank index.
I was refering to the past five years. March 1, 2018 to March 1, 2023 both KBWB and KBE have returned a mere 10%, and of course they are a big loser if you include this past month too. At the same time, IAF, which is broader financials, is up 30% and VOO is up 60%. Your idea of comparing the time frame after the 2008 crisis is a different approach that has merit. There certainly is opportunity in banks, but danger too, and it is one of those things where the rules could change in an unforseeable way, like government intervention, so you might analyze something right but it turns out wrong.
Why not an etf like KBWB or KRE ? They have a similar upside or may be 10% less. Not worth taking risk in an individual stock.
Checkout KBWB. It does not have a lot of regional banks but is still considerably down.
If you want a more bank focused ETF it is KBWB. XLF has Morgan Stanley and Ibanks / trading if you want that.
KBWB looking like a good option if you want to play the financial sector a little safer. All of their main holdings are solid banks getting beat down by the bad apples.
So what you're telling me is that KBWB is a screaming buy at a discount?
There’s also KBWB (Invesco KBW Bank ETF) in case anyone was looking for an ETF targeting banks….holds around 25 names using modified market-cap weighting.
Why buy one? If you think large banks have dropped unnecessarily or are oversold, buy XLF/KBWB
Any thoughts on buying KBWB? Bank ETF exposed mostly to big banks like C, JPM?
Well an interest free loan is still brrr but either way KBWB going to blast off tomorrow.
“All over social media” is like checking r/politics and thinking it’s a fair representation of the country. I’d chill and yolo on KBWB puts on Monday and then calls in a couple of weeks.
Monday I’m buying puts on KBWB for shits and giggles.
KBWB is better if you want banking and less investment banks like MS or GS.
#### KBWB - Puts I'm thinking Easy Money This ETF invests based on the KBW Nasdaq Bank Index and typically allocates at least 90 percent of its assets in securities that make up the index. Holdings include large money-center banks, such as Wells Fargo and Bank of America, as well as regional banks and thrift institutions.
Seriously, would it be a good idea to buy some puts on bank ETFs like KBWB, DPST, any other good ones that might pay if credit crisis does hit
Increasing my cash on hand. On another drop I will load KBWB, JEPI, Unity, SCHD, O. Once I got 100 Shares I will start selling OTM calls and buying farther OTM calls to hedge against. Potential rally. Currently standing at U: 88 shares KBWB: 32 JEPI: 37 SCHD: 0 O: 0
I agree with you 100% and have been building a position for about 6 months now. I think all banks will benefit with rising rates, and the risk of deep recession are overblown. Citi is paying a 4% dividend and is trading at around 50% book value. I think that's why Buffett bought it. Also the last time the Fed tried to raise rates 2017 ish the dividends for bank stocks rose about 20% each year while they were buying back shares until covid. I think rising dividends and share buybacks are going to be a big part of this trade. My preferred method to play this is to just buy the ETF's below. I think this is more of a rising tide lift all boats situation with interest rates being the tide. KRE - SPDR S&P Regional Banking ETF KBWB - Invesco KBW Bank ETF KBWR - Invesco KBW Regional Banking ETF KBE - SPDR S&P Bank ETF
Works on solid ETFs like SCHD, SPYD, KBWB, MPW, etc. or MSFT, AMZN, AAPL.
You want to be even more safe? Write a CC on top of KBWB lol.
Honestly all the "bank" stocks are good, if rates get hiked they will benefit once yield curve normalizes. I like C because it's stupid cheap and has the most upside (6 PE lol). BAC is safe af and WFC is good too. If you want to eliminate company risk I think KBWB which is bank-focused vs. like a regular financial ETF contains things like Goldman, Morgan, Blackrock, etc.
I like KBWB for owning banks, individual ones get tricky
I'm in XLF and XLV, both look like they'll have strong 2022's. Deep ITM leaps are cheap on both. One thing I might recommend is looking into KBWB as am alternative to XLF. I'd rather be in KBWB during the first 4-6 months of the year and XLF overall.
lol unlikely to go to zero. I have maybe half your amount in banking as well but went with KBWB for the bulk and some out of the money options to enhance the upside. It's up 70% on the year but I haven't been in it a full year just a few months. My concern with the trip leverage at this point is I see equal downside to upside but if I ever feel like banking has bottomed out I'll jump over.
WFC is basically tracking with KBWB (Invesco banks ETF) since May. I.e. whatever it's been doing is a result of industry expectations, not expectations of WFC itself. Up 0.41% in a day is not a jump.
KBWB. Like what I see for the future of big banks.
Did anyone notice KBWB AH? Bank really rally today eh
Going all in on banks at open. They’re going to post huge profits for the next 3-4 quarters with all this new money floating around. XLF, IYF, and KBWB ETFs are the play
Going all in on banks Monday morning. They’re going to post huge profits for the next 3-4 quarters with all this new money floating around. XLF, IYF, and KBWB ETFs are the play
[https://i.ibb.co/HYKmbS0/image.png](https://i.ibb.co/HYKmbS0/image.png) KBWB (Invesco KBW Bank ETF) largest dark pool print ever. That is 233% of avg daily vol, 82% of today's total volume, and today's total volume is 281% over avg.