DEFINITION of 'ABA Bank Index'

A banking index that is made up of community banks and banking institutions. This index was created to represent the smaller institutions of the banking industry and stands in contrast to the KBW Banking Index in that respect. The ABA index trades on the Nasdaq under the symbol ABAQ.

BREAKING DOWN 'ABA Bank Index'

The ABAQ Index is weighted according to market value. The index was created in 2003 in an effort to publicize the community banking industry and is computed for both total and price return. The ABAQ is also designed to aid in improved market liquidity and more equitable market valuations.

RELATED TERMS
  1. ABA Transit Number

    A unique number assigned by the American Bankers Association ...
  2. American Bankers Association - ...

    The American Bankers Association (ABA) is the largest banking ...
  3. KBW Bank Index

    An economic index consisting of the stocks of 24 banking companies. ...
  4. Australian Bankers Association ...

    An association of banks that work on behalf of its member financial ...
  5. Bankers' Bank

    A special type of bank that is created by a group of banks. Bankers' ...
  6. Bank

    A financial institution licensed as a receiver of deposits. There ...
Related Articles
  1. Investing

    Breaking Down the First Trust NASDAQ ABA Community Bank ETF (QABA)

    Get an analysis of the First Trust NASDAQ ABA Community Bank ETF, the single best pure-play ETF for investors seeking exposure to small-cap bank stocks.
  2. Investing

    KBWB: PowerShares KBW Bank ETF

    Consider an examination and analysis of the PowerShares KBW Bank Portfolio ETF, considered one of the primary financial sector ETFs.
  3. Personal Finance

    Retail Banking Vs. Corporate Banking

    Retail banking is the visible face of banking to the general public. Corporate banking, also known as business banking, refers to the aspect of banking that deals with corporate customers.
  4. Investing

    What is an Index?

    An index is a statistical means of calculating a change in an economy or market.
  5. Investing

    Bank of America Boosted by Expected Rate Hike (BAC)

    Valuation concerns at Bank of America – or any of the "big four" banks – could be a moot issue if interest rates rise.
  6. Trading

    Using Index Futures To Predict The Future

    Want to know whether the stock market will open up or down? Check out the index futures.
  7. Investing

    The Pros and Cons of Indexes

    Learn about the advantages and disadvantages of stock indexes and passive index funds. Discover how there is an opportunity cost to using index funds.
  8. Investing

    What's a Correspondent Bank?

    A correspondent bank is a bank that acts on behalf of another bank, usually a foreign bank.
  9. Tech

    Regional, Community Bank Stocks the Next Big Thing

    The very best opportunities are often in the less exciting stocks and sectors. Community banks may not be sexy, but they can be very profitable investments.
  10. Investing

    This ETF Suggests Now Is The Time To Buy Regional Bank Stocks (KRE, WAL)

    The charts of several regional bank stocks are suggesting that the sector could benefit from a broad move higher. We'll take a look at a few ways to make the trade.
RELATED FAQS
  1. What are the most common ETFs that track the banking sector?

    Learn about common bank ETFs, and find out which ones focus on the international financial sector, big banks, regional banks ... Read Answer >>
  2. What is the average profit margin for a company in the banking sector?

    Learn what the average profit margin is for companies in the banking sector, along with other evaluation metrics often used ... Read Answer >>
  3. Is it possible to invest in an index?

    First, let's review the definition of an index. An index is essentially an imaginary portfolio of securities representing ... Read Answer >>
  4. How does investment banking differ from commercial banking?

    Discover how investment banking differs from commercial banking, the responsibilities of each and how the two can be combined ... Read Answer >>
  5. What factors are the primary drivers of banks' share prices?

    Find out which factors are most important when determining the share price of banks and other lending institutions in the ... Read Answer >>
  6. What are the major categories of financial institutions and what are their primary ...

    Understand the various types of financial institutions that exist in today's economy, and learn the purpose each serves in ... Read Answer >>
Hot Definitions
  1. Operating Ratio

    A ratio that shows the efficiency of a company's management by comparing operating expense to net sales. Calculated as:
  2. Expense Ratio

    A measure of what it costs an investment company to operate a mutual fund. An expense ratio is determined through an annual ...
  3. Pro Forma

    A Latin term meaning "for the sake of form". In the investing world, it describes a method of calculating financial results ...
  4. Trumpcare

    The American Health Care Act, also known as Trumpcare and Ryancare, is the Republican proposal to replace Obamacare.
  5. Free Carrier - FCA

    A trade term requiring the seller to deliver goods to a named airport, terminal, or other place where the carrier operates. ...
  6. Portable Alpha

    A strategy in which portfolio managers separate alpha from beta by investing in securities that differ from the market index ...
Trading Center