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Cooling#86 of 115 by 1M spread

Banks vs the S&P 500 (KBWB): is it outperforming?

Over the past month, KBWB has underperformed the S&P 500 by 4.6 points. Here is where that puts it in the sector rotation — updated daily.

1M spread vs SPY
−4.6 pts
Quadrant
Cooling
Momentum
Weakening
RS health
Broken
Holdings P/E
14.4×

Where KBWB sits on the rotation map

Banks highlighted against the 11 broad S&P 500 sectors. Vertical: 1-month spread vs the S&P 500. Horizontal: the longer, time-shifted window — the methodology explains the math.

KBWB vs SPY: head-to-head returns

KBWB (banks) and SPY (the S&P 500) side by side over every window Zensei tracks. The spread is the difference — positive means KBWB won that window.

Window
KBWB
SPY
Spread
1 week+0.7%+0.5%+0.2 pts
2 weeks−3.0%−1.1%−1.9 pts
1 month−0.7%+3.8%−4.6 pts
3 months+11.0%+2.0%+9.1 pts
6 months+19.0%+12.7%+6.2 pts
1 year+26.9%+19.9%+7.1 pts

Data as of 2026-08-28 · computed from daily adjusted closes · how we measure

The read

Banks (KBWB) is losing its lead. It built a 13.7-point advantage over the S&P 500 across the longer, time-shifted window, but over the past month it has slipped 4.6 points behind the market — the Cooling quadrant of the rotation map. Ranked by one-month spread, it currently stands #86 of the 115 groups Zensei tracks.

On the shorter tape, KBWB's momentum is weakening: the intraday trend that carried the move is cooling across the shorter windows. KBWB's relative-strength line has broken below its long-term average — the long-term outperformance trend is no longer intact. Both signals point the same direction here: the market is not rewarding this group on either horizon.

The exposure comes via Invesco KBW Bank ETF, whose 25 tracked holdings are led by BANK OF AMERICA CORP, JPMORGAN CHASE & CO and WELLS FARGO & CO. Weighted by portfolio, the fund's holdings trade at roughly 14.4× earnings and 3.9× sales. The thing to watch from here is whether this is a pause or a handoff: cooling groups sometimes reset and reclaim leadership, but a deepening one-month deficit usually means rotation has moved on.

What's inside KBWB

Top 5 of 25 tracked holdings, by portfolio weight.

Holding
Weight
1M
BACBANK OF AMERICA CORP
8.5%−0.5%
JPMJPMORGAN CHASE & CO
8.3%+0.1%
WFCWELLS FARGO & CO
8.0%+0.4%
GSTHE GOLDMAN SACHS GROUP INC
7.6%+0.1%
MSMORGAN STANLEY
7.5%+2.1%
20 more holdings — each measured against the sector, with momentum and relative strengthUnlock with Premium

Banks vs the market — common questions

Is banks outperforming the S&P 500?

Right now, no: over the past month KBWB has underperformed the S&P 500 by 4.6 points. This page updates daily, so the answer reflects current market data rather than a dated article.

What is KBWB?

KBWB is Invesco KBW Bank ETF, the fund Zensei uses to measure the banks group against the S&P 500 benchmark (SPY).

Which stocks are in KBWB?

KBWB's largest tracked positions are BANK OF AMERICA CORP, JPMORGAN CHASE & CO, WELLS FARGO & CO, THE GOLDMAN SACHS GROUP INC, MORGAN STANLEY — 25 holdings in total. The full list, with each stock measured against the group, is part of Zensei Premium.

What quadrant is banks in right now?

As of the latest daily data, banks is in the Cooling quadrant — still ahead over the longer window, but behind the market over the past month. The quadrant rules are documented on the Zensei methodology page.

Related sectors

Track banks against the whole market

Zensei Edge maps 100+ sectors and themes against the S&P 500 — with the stocks inside each one, rotation history and alerts when leadership changes hands.