State Street SPDR S&P Bank ETF KBE is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and moved up 52.66% from its 52-week low price of $44.34 per share.
Are more gains in store for this ETF? Let us take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed.
KBE in Focus
The underlying S&P Banks Select Industry Index is a modified equal-weighted index that seeks to reflect the performance of publicly traded companies that do business as banks or thrifts. The product charges 0.35% in annual fees (see: all Financials ETFs).
Why the Move?
The banking sector has been an area to watch lately, given the rise in the expectations of an interest rate cut in 2026 following Kevin Warsh’s nomination as Fed Chair. Warsh is expected to advocate rate reductions alongside a leaner Fed balance sheet, a policy backdrop that could steepen the yield curve and benefit the fund.
More Gains Ahead?
Currently, KBE has a Zacks ETF Rank #1 (Strong Buy) and a High risk outlook. It might continue its strong performance in the near term, with a positive weighted alpha of 22.27 (as per Barchart.com), which gives cues of a further rally.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
