Research
Indices Profile
KBW's family of indices and Exchange-Traded Funds (ETFs) provide investors with a method to track the performance of the Banking, Broker/Dealer, Asset Management, Insurance, Equity REITs and Mortgage Finance sectors within the financial services industry. The Indices are comprised of publicly-traded companies and the components are generally chosen on the basis of relevance to the particular market sector and various trading criteria. The ETFs are based on a specific index and track the performance of that index by holding in its portfolio either the securities replicating the index or a representative sample of the securities in the index. The table below shows the KBW Family of Indices and ETFs. Click on an Index or ETF symbol below for additional information.
KBW's Index Research Group maintains and publishes analysis on the KBW family of indices. These indices are intended to provide industry benchmarks for the specific sectors within the financial industry.
The KBW family of indices currently includes one global financial index and eight U.S. financial sector indices. Both the global index and U.S. financial sector indices serve as the basis for a family of exchange-traded funds through our partnership with INVESCO PowerShares and two specialty exchange-traded funds through our partnership with ProShares.
KBW Indices & ETFs
| Index Symbol | Index Name | ETF Symbol | ETF Name | Methodology |
|---|---|---|---|---|
| BKX | KBW Bank Index | KBWB | PowerShares KBW Bank Portfolio | Modified Market-Cap Weighted |
| KRX | KBW Regional Banking Index | KBWR | PowerShares KBW Regional Banking Portfolio | Modified Equal Weighted |
| KRX | KBW Regional Banking Index | KRU | ProShares Ultra KBW Regional Banking1 | 2X Leverage KRX |
| KRX | KBW Regional Banking Index | KRS | ProShares Short KBW Regional Banking2 | 1X Short KRX |
| KIX | KBW Insurance Index | KBWI | PowerShares KBW Insurance Portfolio | Modified Market-Cap Weighted |
| KSX | KBW Capital Markets Index | KBWC | PowerShares KBW Capital Markets Portfolio | Modified Market-Cap Weighted |
| KPX | KBW Property & Casualty Insurance Index | KBWP | PowerShares KBW Property & Casualty Insurance Portfolio | Modified Market-Cap Weighted |
| KYX | KBW Premium Yield Eq. REIT Index | KBWY | PowerShares KBW Premium Yield Equity REIT Portfolio | Modified Yield Weighted |
| KDX | KBW Financial Sector Dividend Yield Index | KBWD | PowerShares KBW High Dividend Yield Financial Portfolio | Modified Yield Weighted |
| KGX | KBW Global Financials (ex-u.s.) Index | KBWX | PowerShares KBW International Financial Portfolio | Modified Market-Cap Weighted |
| MFX | KBW Mortgage Finance Index | N/A | N/A | Modified Market-Cap Weighted |
An investor cannot invest directly in an index.
N/A - There is no ETF associated with this index.
1,2 Leverage and Inverse ETFs: These funds may not be suitable for all investors and should be used only by knowledgeable investors who understand the potential consequences of seeking daily leveraged investment results. Investing involves risk, including the possible loss of principal. Short ProShares are non-diversified and should lose value when their market indexes rise—a result that is opposite from traditional ETFs—and they entail certain risks including risk associated with the use of derivatives, imperfect benchmark correlation, leverage and market price variance, all of which can increase volatility and decrease performance. Please see their summary and full prospectuses for a more complete description of risks.
1 ProShares Ultra KBW Regional Banking seeks a return that is 2x the return of an index (target) for a single day, as measured from one NAV calculation to the next.
2 ProShares Short KBW Regional Banking seeks a return that is -1x the return of an index (target) for a single day, as measured from one NAV calculation to the next.
Due to the compounding of daily returns, returns over periods other than one day will likely differ in amount and possibly direction from the target return for the same period. These effects may be more pronounced in funds with larger or inverse multiples and in funds with volatile benchmarks.
KBW Indices Rules for Index Management. Please click here for the Indices Rules.
For further information on KBW Indices, please contact: Indices@kbw.com
The following indices: U.S.: KBW Bank Index (BKX), KBW Insurance Index (KIX), KBW Capital Markets Index (KSX), KBW Regional Banking Index (KRX), KBW Mortgage Finance Index (MFX), KBW Property & Casualty Index (KPX), KBW Premium Yield Equity REIT Index (KYX); KBW Financial Sector Dividend Yield Index (KDX) and Global: KBW Global ex-U.S. Financial Sector Index (KGX) are the property of Keefe, Bruyette & Woods, Inc. (KBW).
KBW does not guarantee the accuracy and/or completeness of the Indices, makes no express or implied warranties with respect to the Indices and shall have no liability for any damages, claims, losses or expenses caused by errors in the index calculation. KBW makes no representation regarding the advisability of investing in options on the Index Past performance is not necessarily indicative of future results.
The shares ("Shares") of KBW ETFs are not sponsored, endorsed, sold or promoted by Keefe, Bruyette & Woods, Inc. ("KBW"). KBW makes no representation or warranty, express or implied, to the owners of the Shares or any member of the public regarding the advisability of investing in securities generally or in the Shares particularly or the ability of its Indices to track general stock market performance. The only relationship of KBW to Invesco PowerShares Capital Management LLC and ProShares is the licensing of certain trademarks and tradenames of KBW and its Indices which are determined, composed and calculated by KBW without regard to Invesco PowerShares Capital Management LLC and ProShares, the fund, or the Shares. KBW has no obligation to take the needs of Invesco PowerShares Capital Management LLC and ProShares or the owners of the shares into consideration in determining, composing, or calculating the Indices. KBW is not responsible for and has not participated in any determination or calculation made with respect to issuance or redemption of the Shares. KBW has no obligation or liability in connection with the administration, marketing or trading of the Shares.
ETFs trade like stocks, are subject to investment risk, fluctuate in market value and may trade at prices above or below the ETFs net asset value. Investing in a single sector may be subject to more volatility than funds investing in a diverse group of sectors. Brokerage commissions and ETF expenses will reduce returns. In general, ETFs can be expected to move up or down in value with the value of the applicable index. Although ETFs may be bought and sold on the exchange through any brokerage account, ETFs are not individually redeemable from the Fund. Investors may acquire ETFs and tender them for redemption through the Fund in Creation Unit Aggregations only, please see the prospectus for more details. There are risks involved with investing in ETFs, including possible loss of money. Shares are not actively managed and are subject to risks including those regarding short selling and margin maintenance requirements. Past performance is not necessarily indicative of future results.
ProShares Ultra KBW Regional Banking (KRU) and ProShares Short KBW Regional Banking (KRS) ETFs seek returns that are either 2x, -1x, respectively, the return of an index or other benchmark (target) for a single day, as measured from one NAV calculation to the next. Due to the compounding of daily returns, ProShares' returns over periods other than one day will likely differ in amount and possibly direction from the target return for the same period. Investors should monitor their ProShares holdings consistent with their strategies, as frequently as daily. For more on correlation, leverage and other risks, please read the prospectus.
An investor should consider the Funds' investment objectives, risks, charges and expenses carefully before investing. This and other information can be found in their prospectuses. For this and more complete information about the Funds, call InvescoPowerShares at 1-800-983-0903 or visit http://invescopowershares.com ; or call ProShares Client Services at 1-866-776-5125 or visit http://www.proshares.com/resources/litcenter/ for a prospectus. The prospectus should be read carefully before investing.
Shares of the ETFs funds are not guaranteed or insured by the FDIC or by another governmental agency; they are not obligations of the FDIC nor are they deposits or obligations of or guaranteed by KBW , Invesco PowerShares Capital Management LLC or ProShares. ETFs are distributed by Invesco Distributors, Inc. the distributor of the PowerShares Exchange-Traded Fund Trust II. PowerShares® is a registered trademark of Invesco PowerShares Capital Management LLC; ProShares are distributed by SEI Investments Distribution Co. which is not affiliated with ProFunds Group or its affiliates.
This communication is not an offer to sell or a solicitation to buy the securities mentioned. The information relating to any company herein is derived from publicly available sources and Keefe, Bruyette & Woods, Inc. makes no representation as to the accuracy or completeness of such information.