FDIQ vs KBWB

FDIQCInvesco Bloomberg Financial Data Providers ETF

KBWBBInvesco KBW Bank ETF

In short

FDIQ Most financials ETFs buy lenders. FDIQ buys the companies that sell finance its data, a rules-based basket of roughly 30 financial data providers drawn from a Bloomberg index. Picks and shovels, not balance sheets.

KBWB Banks, and nothing but. KBWB has tracked the KBW Nasdaq Bank Index since 2011, packing roughly two dozen US bank stocks into one ticker with no insurers or asset managers diluting the theme.

Stated mandate

FDIQ The Fund seeks to track, before fees and expenses, the investment results of the Bloomberg Financial Data Providers Index. It generally invests at least 90% of its total assets in securities comprising that index.

KBWB The Fund seeks to track the KBW Nasdaq Bank Index and normally invests at least 90% of its total assets in securities represented by that index.

Why people hold it

• FDIQ A different door into financials: the data and information side rather than deposits and loan books, with at least 90% of assets in its Bloomberg index's constituents.
• 0.35% expense ratio, right at the middle of its financials-and-banks peer group, so the niche exposure carries no novelty surcharge.
• Concentrated on purpose: roughly 30 developed-market names, so the theme isn't diluted by hundreds of side bets.
• On the market since 2011 and pays quarterly, so it has a real operating history rather than a launch-week story.

• KBWB Undiluted US bank exposure: it tracks the KBW Nasdaq Bank Index and normally keeps at least 90% of assets in that index's securities.
• A multi-billion-dollar fund that trades actively, so entering and exiting is usually straightforward even on noisy days for the sector.
• 0.35% expense ratio, the going rate in bank funds and the same sticker as SPDR rivals KBE and KRE.
• Live since 2011 and one of the stronger builds in its bank-fund peer group, with a mandate that has stayed put.

Worth knowing

• FDIQ Thinly traded next to the big bank funds like KRE and KBWB, which can mean wider bid-ask spreads and more attention paid to order type.
• A 30-stock slice of financials can move a long way from the broad sector, in either direction, and the data theme is the whole bet.
• Assets are modest compared with the household-name bank ETFs, which is worth knowing on any specialist index.

• KBWB Around 26 holdings in a single industry. When banks wobble, there is nothing else in the basket to absorb it.
• Bank shares live and die by rates, credit conditions and regulation, which makes for a bumpier ride than a broad-market fund.
• Distributions land quarterly, not monthly, and the amount moves with what the underlying banks choose to pay.

Full FDIQ profile⁠

Full KBWB profile⁠