Avanda Disclosed Complete Sale of 438K KBWB Shares Valued at $31.3 Million

On November 7, 2025, Avanda Investment Management Pte. Ltd. disclosed a complete sale of its position in KBWB, reducing its holdings by approximately $31.3 million.

What happened

Avanda Investment Management Pte. Ltd. sold its entire stake in Invesco KBW Bank ETF (NASDAQ:KBWB), according to a filing with the Securities and Exchange Commission dated November 7, 2025. The fund liquidated 437,500 shares, previously valued at approximately $31.3 million, as part of a broader liquidation that saw reportable AUM fall by 41.8% overall.

What else to know

The fund sold out of KBWB; the position was 10.3% of AUM in the prior quarter and is now zero.

• Top holdings post-filing:
  • SE: $33.8 million (26.6% of AUM)
  • YUMC: $24.3 (19.1% of AUM)
  • MBB: $23.5 (18.5% of AUM)
  • V: $6.6 million (5.2% of AUM)
  • GOOGL: $4.9 million (3.8% of AUM)

As of November 10, 2025, shares of KBWB were priced at $78.44, up 20% over the past year, outperforming the S&P 500 by 4.6 percentage points.

Company overview

Company snapshot

• The Invesco KBW Bank ETF (KBWB) provides investors with concentrated exposure to the largest U.S. banking institutions, leveraging a rules-based index strategy to reflect sector performance.
• Invests at least 90% of assets in securities comprising the underlying index.
• Portfolio is comprised primarily of publicly traded U.S. banks, with allocations determined by a modified market capitalization-weighted methodology.

Foolish take

Avanda Investment Management just completely pulled out of the Invesco KBW Bank ETF, selling $31 million worth. This marks a significant move away from U.S. financial stocks, especially after the sector had a really strong run.

The exit comes at a time when big banks are still doing well, thanks to higher net interest income and solid balance sheets, but it is also facing challenges from a slowdown in the loan market and closer regulatory watch. For Avanda, this sale could signal a strategic shift toward assets that are less sensitive to economic cycles or are more regionally diverse, especially after it reported a sharp 41% drop in its total assets under management last quarter.

The Invesco KBW Bank ETF remains one of the quickest ways to get exposure to major U.S. banks, holding names like JPMorgan Chase, Wells Fargo, and Bank of America. Its 20% year-to-date gain highlights renewed investor optimism in the financial sector. Still, with ongoing uncertainty in the economy, locking in profits now could be a smart, tactical move for Avanda rather than a sign it has lost faith in the sector.

Glossary

Full exit: When an investor sells all shares of a particular holding, leaving no remaining position.

13F reportable assets under management (AUM): The total value of securities a fund must disclose quarterly to the SEC on Form 13F.

Asset allocation: The process of dividing investment funds among different asset categories, such as stocks, bonds, or sectors.

Quarterly average prices: The mean price of a security over a three-month reporting period, used for estimating trade values.

Trailing dividend yield: The annual dividends paid over the past year divided by the current share price.

52-week high: The highest price at which a security has traded during the previous 12 months.

Non-diversified ETF: An exchange-traded fund that invests a large portion of assets in a single sector or group, increasing concentration risk.

Sector allocation: The distribution of investments across specific industry sectors within a portfolio.

Rules-based index strategy: An investment approach that follows predetermined, systematic criteria to select and weight securities in an index.

Modified market capitalization-weighted methodology: An index construction method that adjusts company weights based on size, with additional rules to limit concentration.

Liquidity (in funds): The ease with which fund shares can be bought or sold without significantly affecting the price.

Tactical tool: An investment used to make short- or medium-term adjustments to a portfolio's sector or asset exposure.

Adam Palasciano has no positions in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Sea Limited, and Visa. The Motley Fool has a disclosure policy.