Interest rate normalization is "not going to mean that much" for sluggish financial stocks, Hennessy Funds' Dave Ellison said Thursday.
But continued improvement in the economy—which would lead to an increase in lending—will provide a more noticeable boost for the sector, said Ellison, a senior vice president at the firm, who manages its large-cap financial fund.
"Rates are going to go up if the economy gets better and that's good for the industry," he said in a CNBC "Power Lunch" interview.
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Big-name financials have struggled to gain momentum this year. Ellison manages the Hennessy Large Cap Financial Investor Fund, which follows key names including JPMorgan Chase, Citigroup and Bank of America.
The fund has fallen more than 4 percent this year.