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KBW Bank Index

What is 'KBW Bank Index'

An economic index consisting of the stocks of 24 banking companies. This index serves as a benchmark of the banking sector. This index trades on the Philadelphia Stock Exchange, where it was created. The KBW Index is named after Keefe, Bruyette and Woods, a recognized authority in the banking industry.

Explaining 'KBW Bank Index'

The KBW Index trades under ticker symbol BKX. The index is weighted according to capitalization and represents major banks and money centers from across the country. Mathematically, the index is based on a tenth of the value of the Keefe, Bruyette and Woods Index (KBWI). It began trading options in September of 1992.


Further Reading


Global liquidity, market sentiment, and financial stability indices
www.sciencedirect.com [PDF]
… Bouncing Long-suffering bank stocks rebounded Wednesday, helped by a shakeup at Bank of America. The KBW Bank Index of large US banks. Aug. 30 Sept … CECE STEWART, Citigroup head of consumer and commercial banking Bo sto nG lobe/ Getty Images …

Size and Day-of-the-Week Effect in the Banking Industry: A Comparative Analysis Based on Economic ConditionsSize and Day-of-the-Week Effect in the Banking Industry: A Comparative Analysis Based on Economic Conditions
ideas.repec.org [PDF]
… Bouncing Long-suffering bank stocks rebounded Wednesday, helped by a shakeup at Bank of America. The KBW Bank Index of large US banks. Aug. 30 Sept … CECE STEWART, Citigroup head of consumer and commercial banking Bo sto nG lobe/ Getty Images …

Return dependence and the limits of product diversification in financial firmsReturn dependence and the limits of product diversification in financial firms
onlinelibrary.wiley.com [PDF]
… Bouncing Long-suffering bank stocks rebounded Wednesday, helped by a shakeup at Bank of America. The KBW Bank Index of large US banks. Aug. 30 Sept … CECE STEWART, Citigroup head of consumer and commercial banking Bo sto nG lobe/ Getty Images …

Risk-adjusted performance: Lessons from the Financial CrisisRisk-adjusted performance: Lessons from the Financial Crisis
jsf.pm-research.com [PDF]
… Bouncing Long-suffering bank stocks rebounded Wednesday, helped by a shakeup at Bank of America. The KBW Bank Index of large US banks. Aug. 30 Sept … CECE STEWART, Citigroup head of consumer and commercial banking Bo sto nG lobe/ Getty Images …

The stimulus schemes will stress the financial systemThe stimulus schemes will stress the financial system
www.emerald.com [PDF]
… Bouncing Long-suffering bank stocks rebounded Wednesday, helped by a shakeup at Bank of America. The KBW Bank Index of large US banks. Aug. 30 Sept … CECE STEWART, Citigroup head of consumer and commercial banking Bo sto nG lobe/ Getty Images …

Volatility Spillovers between US Banking Industry and Bitcoin Market: Risk Implications for Banking IndustryVolatility Spillovers between US Banking Industry and Bitcoin Market: Risk Implications for Banking Industry
dl.acm.org [PDF]
… Bouncing Long-suffering bank stocks rebounded Wednesday, helped by a shakeup at Bank of America. The KBW Bank Index of large US banks. Aug. 30 Sept … CECE STEWART, Citigroup head of consumer and commercial banking Bo sto nG lobe/ Getty Images …



Q&A About KBW Bank Index


Who created the KBW Bank Index?

Nasdaq Global Indexes created it in 2007.

Why might someone want to track these indexes ?

Someone may want to track these indexes because they're interested in tracking large banks' performance over

What does this index represent?

This index represents major banks and money centers from across the country.

How do you determine a stock's market capitalization ?

Market capitalization is calculated by multiplying a stock's share price by its total number of outstanding shares . For example , if XYZ Company has 10 million shares outstanding and each share costs $10 , then XYZ 's market cap would be $100 million (10 million x $10 = $100 million ).

Where does this index trade?

This index trades on the Philadelphia Stock Exchange.

What kind of information can you find on page 1 and page 2 ?

You can find information about what indexes are tracked by this one , along with details about how they're weighted .

How do you calculate its price change over time (in percentage)?

You can calculate its price change over time using this formula =(BKX/KBWI)^100*100; where BKX stands for "the current closing price" and KBWI stands for "the previous closing price".

How is it weighted?

It's weighted by capitalization.

Why would you want to invest in this particular stock market index if you are interested in investing in financial markets such as stocks, bonds or other types of securities traded through exchanges like NYSE or NASDAQ ?

Because it serves as a benchmark for banking sector stocks which may be useful to investors who are interested in making long-term investments with low risk levels associated with them.

What is the KBW Bank Index?

The KBW Bank Index is a stock market index that tracks the performance of the largest U.S. bank stocks.

What does "weighting" mean?

Weighting refers to how much each company contributes to an overall portfolio or fund value. In this case, weighting means how much each company contributes to the overall value of the KBW Bank Index.

What does "methodology" mean?

Methodology refers to a set of rules used for making decisions about something, such as a financial product or service like an investment strategy or index fund . In this case, methodology refers to how each company's contribution is determined based on its market capitalization (stock price times number of shares outstanding).

What was its inception date in terms of trading options for investors to use as a benchmark for their investments in financial markets?

September 1992

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