US bank stocks are showing strength on expectations of financial deregulation, with an exchange-traded fund (ETF) focused on major American banks delivering standout performance.
According to financial data provider FnGuide on Wednesday, KB Asset Management's RISE US Bank TOP10 ETF posted a return of 12.38% over the past three months as of the previous day. The six-month return reached 30.57%. The gains came as share prices of major US banks broadly rose following the launch of the Trump administration, which has raised expectations for financial deregulation.
The RISE US Bank TOP10 ETF, listed in February this year, is Korea's first US banking sector ETF that focuses on the ten largest American banks. The portfolio is built around stocks representing global financial markets, including JPMorgan Chase, Bank of America, Wells Fargo, Morgan Stanley, and Goldman Sachs.
By holdings, JPMorgan accounts for 19.19%, followed by Bank of America at 15.83%, Wells Fargo at 12.06%, Morgan Stanley at 11.53%, and Goldman Sachs at 11.21%. The top ten US banks hold approximately 60% of global banking assets, demonstrating their overwhelming scale and competitiveness.
These banks operate not only traditional banking businesses centered on loans and deposits but also maintain diverse business portfolios including wealth management and investment banking. Their ability to maintain relatively stable revenue structures even during economic fluctuations or changing interest rate environments has been cited as a key strength.
Recently, alongside financial deregulation, the possibility of eased regulations on bank mergers and acquisitions has also emerged, expanding expectations for growth and improved earnings centered on major bank stocks. Market analysts have suggested that large banks with ample capital reserves could directly benefit from the deregulatory environment.
"Expectations for deregulation surrounding major US banks have been spreading since the launch of the Trump administration," said Yuk Dong-hwi, head of ETF product marketing at KB Asset Management. "The RISE US Bank TOP10 ETF is an efficient vehicle for investing in major US bank stocks."
