At a glance
KBWB charges 0.35% a year, above the 0.33% average of the 8 funds most like it (the 4th cheapest of 9). It has $5.32B in assets, the 3rd largest of that group; it paid 2.1% of its price in distributions over the past 12 months, quarterly. Over the past year it returned +17.4% with distributions reinvested (S&P 500: +11.5%), 2nd of those 9 funds; over three years it returned +37.5% a year. At its worst it fell 48.2% in the 2020 crash (S&P 500: 33.7%) and 34.6% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 10 months and 25 months after the lows. Its ten largest positions make up 61.5% of the fund, out of 24 in all.
The short version
Invesco KBW Bank ETF (KBWB) tracks the KBW Nasdaq Bank Index, which holds 24 large US banks, including Morgan Stanley, Goldman Sachs, Bank of America and JPMorgan Chase. It is a concentrated bet on one industry, not a broad financials fund. Its 0.35% expense ratio is well below the 0.60% charged by the closest bank-only rival, First Trust Nasdaq Bank ETF. It is far above the 0.08% of the broader Financial Select Sector SPDR Fund (XLF).
Price history
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KBWB +17.4% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| KBWB official prospectus, to Dec 31, 2024 | — | +36.65% | — | +5.46% | +8.20% | — |
| KBWB price data to Oct 27, 2026 | +6.8% | +17.4% | +37.5% | +7.5% | +11.5% | +13.0% |
- Over the year to Oct 27, 2026, KBWB returned +17.4%, 2nd of 9 among similar funds.
- Its 5-year annualized return was +7.5% and its 10-year +11.5%.
- In the 2020 COVID crash it fell 48.2% and regained its old high 9.5 months after the low.
- Its worst full calendar year was 2022 (-21.7%); its best was 2021 (+37.8%).
- The deepest fall in its price history was 50.2% (Jan 2, 2020 to Mar 23, 2020), recovered by Jan 14, 2021.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +6.8% | — |
| 2025 | +32.0% | — |
| 2024 | +36.7% | +36.65% |
| 2023 | -1.1% | -1.18% |
| 2022 | -21.7% | -21.67% |
| 2021 | +37.8% | +37.88% |
| 2020 | -10.4% | -10.54% |
| 2019 | +35.9% | +35.61% |
| 2018 | -18.3% | -17.96% |
| 2017 | +18.1% | +18.16% |
| 2016 | +28.2% | +28.04% |
| 2015 | -0.1% | +0.14% |
| 2014 | +9.2% | — |
| 2013 | +37.4% | — |
| 2012 | +32.5% | — |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 48% over that stretch · deepest drop along the way 48.2%, back to its old high 9.5 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 28.8% over that stretch · deepest drop along the way 34.6%, back to its old high 25.3 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $1.4200 | |
| 2025 | $1.7100 | +6.2% |
| 2024 | $1.6100 | +1.9% |
| 2023 | $1.5800 | +0.6% |
| 2022 | $1.5700 | +9.0% |
| 2021 | $1.4400 | +9.1% |
| 2020 | $1.3200 | -5.0% |
| 2019 | $1.3900 | +25.2% |
| 2018 | $1.1100 | +50.0% |
| 2017 | $0.7400 | +1.4% |
| 2016 | $0.7300 | +28.1% |
| 2015 | $0.5700 | -1.7% |
| 2014 | $0.5800 | +13.7% |
| 2013 | $0.5100 | +50.0% |
| 2012 | $0.3400 |
What's inside
As of May 31, 2026, the fund held 24 securities; the ten largest made up 61.54% of assets.
| Holding | Weight | |
|---|---|---|
| Morgan Stanley | 9.36% | |
| Goldman Sachs Group, Inc. (The) | 8.94% | |
| Bank of America Corp. | 7.76% | |
| JPMorgan Chase & Co. | 7.47% | |
| Wells Fargo & Co. | 7.13% | |
| State Street Corp. | 4.53% | |
| Bank of New York Mellon Corp. (The) | 4.39% | |
| Citigroup Inc. | 4.28% | |
| PNC Financial Services Group, Inc. (The) | 3.90% | |
| Fifth Third Bancorp | 3.78% | |
| U.S. Bancorp | 3.76% | |
| M&T Bank Corp. | 3.73% | |
| Northern Trust Corp. | 3.68% | |
| Truist Financial Corp. | 3.66% | |
| Huntington Bancshares Inc. | 3.65% |
By country
United States 99.83%By asset type
Stocks 99.83%By sector
Sectors of the companies held, for the 79.9% of the fund in companies that have a stock page here; other holdings and cash aren't classified. Source: N-PORT holdings report as of May 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to May 31, 2026, investors withdrew a net $548.0M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: -2.78%, +10.36%, -0.25%.
How it works
KBWB tracks the KBW Nasdaq Bank Index. Keefe, Bruyette & Woods and Nasdaq build and run the index. It covers publicly traded US banks: large national "money center" banks, regional banks and thrifts (savings institutions). As of October 31, 2025, the index held 24 stocks with market values from $7.7 billion to $855.5 billion. Invesco Capital Management manages the fund.
The index is "modified market-cap weighted." Bigger companies get bigger weights, but the index provider adjusts the weights so they don't follow company size exactly. The fund uses "full replication": it generally owns every stock in the index in the same proportions, with at least 90% of its assets in index stocks. As of May 31, 2026, the largest positions were Morgan Stanley (9.4%), Goldman Sachs (8.9%), Bank of America (7.8%), JPMorgan Chase (7.5%) and Wells Fargo (7.1%). The top 10 made up 61.5% of the fund.
The fund is "non-diversified," so it may put more money into a few companies than a diversified fund can. One stock's move can therefore swing the share price more. Because the fund is passive, it won't sell a weak stock unless the index drops it. Portfolio turnover was 10%. Apart from stocks, the fund held about 0.43% cash and a tiny futures position of roughly 0.01% as of May 31, 2026.
What it really costs
- KBWB charges 0.35% a year, versus an average of 0.33% for the similar funds below (4th of 9, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $36 in the first year and $444 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| KBWB | $36 | $113 | $197 | $444 |
In a retirement portfolio
It owns only about two dozen bank stocks, and in past market crashes it has fallen further than the broad market.
KBWB could add a focused slice of US bank stocks to a portfolio. Its yield was 2.1% over the 12 months to October 27, 2026, paid quarterly. The risk is real. In the 2020 COVID crash it fell 48.2% and took about 9.5 months to recover. Its deepest drop, 50.2%, ran from January 2 to March 23, 2020. In the 2022 bear market it fell 34.6% and needed about 25 months to recover. Its worst calendar year was 2022, at -21.7%. The fund launched in 2011, so it has no record from the 2008 crisis. Someone who has to sell shares in a bad year may have to sell near a low. On cost, the SEC's standard example puts the 0.35% fee at $444 over 10 years on $10,000. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want a focused slice of big US banks such as Morgan Stanley, Goldman Sachs and JPMorgan Chase, held as a small satellite position.
- Those who want a bank-only fund rather than broad financials, and find 0.35% acceptable next to FTXO's 0.60%.
- Holders who can sit through drops like 48.2% in 2020 and 34.6% in 2022 without needing to sell.
Look elsewhere if
- Cost-focused investors who want wider financial-sector exposure may compare XLF (0.08%) or Vanguard Financials ETF (0.09%).
- Retirees who may need to sell in a downturn: KBWB took about 25 months to recover from its 2022 drop.
- Anyone wanting broad diversification: it holds 24 stocks in one industry, with the top 10 at 61.5% of assets as of May 31, 2026.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| KBWB this fund | — | 0.35% | $5.32B | +17.4% | +37.5% |
| FTXO First Trust Nasdaq Bank ETF | 62% | 0.6% | $301.8M | +16.8% | +30.8% |
| IYG iShares U.S. Financial Services ETF | 39% | 0.39% | $2.17B | +6.1% | +26.1% |
| IAT iShares U.S. Regional Banks ETF | 39% | 0.4% | $656.0M | +22.9% | +28.5% |
| IYF iShares U.S. Financials ETF | 37% | 0.39% | $4.43B | +6.7% | +24.4% |
| XLF Financial Select Sector SPDR Fund | 36% | 0.08% | $51.35B | +9.9% | +22.7% |
| DFNL Davis Select Financial ETF | 35% | 0.63% | $479.6M | +12.3% | +27.4% |
| FNCL Fidelity MSCI Financials Index ETF | 33% | 0.084% | $2.38B | +6.5% | +23.6% |
Questions investors ask
What are KBWB's top holdings?
As of May 31, 2026, KBWB's five largest holdings were Morgan Stanley (9.4%), Goldman Sachs (8.9%), Bank of America (7.8%), JPMorgan Chase (7.5%) and Wells Fargo (7.1%). Next came State Street, Bank of New York Mellon, Citigroup, PNC and Fifth Third. The top 10 made up 61.5% of the fund, and it held 24 stocks in total, nearly all of them US banks.
What's the difference between KBWB and FTXO?
Both are bank-only funds, and their holdings overlap by about 62%. KBWB charges 0.35% a year, compared with 0.60% for First Trust Nasdaq Bank ETF (FTXO). KBWB is also much larger: about $5.3 billion in net assets as of May 31, 2026, versus about $302 million for FTXO as of June 30, 2026. Over the year to October 27, 2026, KBWB returned 17.4% and FTXO returned 16.8%.
Does KBWB pay dividends?
Yes. KBWB pays dividends quarterly. Over the 12 months to October 27, 2026, it paid $1.86 per share, a trailing yield of about 2.1%. The payments come from the dividends of the banks it owns, so the amount can change from quarter to quarter. Banks may cut dividends in hard times, so the income isn't guaranteed.
What is KBWB's 10-year return?
According to its prospectus, KBWB's average annual return was 8.2% over the 10 years to December 31, 2024, and 5.46% over five years. Based on market prices, its 10-year return was about 11.5% a year as of October 27, 2026. The ride was bumpy. Calendar-year results ranged from -21.67% in 2022 to 37.88% in 2021, and it lost 17.96% in 2018.
Is KBWB risky?
Yes, more than a broad stock fund. KBWB holds one industry and is non-diversified, so a few large banks drive much of its return. Its worst quarter was -41.67% in early 2020. It fell 50.2% from January to March 2020, and it dropped 34.6% in 2022 before taking about 25 months to recover. Changes in bank regulation and interest rates can also hit all of its holdings at once.