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Is State Street SPDR S&P Regional Banking ETF (KRE) a Strong ETF Right Now?
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Launched on 06/19/2006, the State Street SPDR S&P Regional Banking ETF (KRE - Free Report) is a smart beta exchange traded fund offering broad exposure to the Financials ETFs category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
Because the fund has amassed over $4.01 billion, this makes it one of the largest ETFs in the Financials ETFs. KRE is managed by State Street Investment Management. This particular fund seeks to match the performance of the S&P Regional Banks Select Industry Index before fees and expenses.
The S&P Regional Banks Select Industry Index represents the regional banks segment of the S&P Total Market Index.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
With one of the least expensive products in the space, this ETF has annual operating expenses of 0.35%.
It has a 12-month trailing dividend yield of 2.19%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
For KRE, it has heaviest allocation in the Financials sector --about 100% of the portfolio.
When you look at individual holdings, East West Bancorp Inc (EWBC) accounts for about 1.15% of the fund's total assets, followed by United Bankshares Inc (UBSI) and Hancock Whitney Corp (HWC).
Its top 10 holdings account for approximately 11.3% of KRE's total assets under management.
Performance and Risk
Year-to-date, the State Street SPDR S&P Regional Banking ETF has gained about 15.6% so far, and is up about 25.57% over the last 12 months (as of 11/03/2026). KRE has traded between $58.63 $77.93 in this past 52-week period.
KRE has a beta of 0.87 and standard deviation of 26.63% for the trailing three-year period, which makes the fund a high risk choice in the space. With about 169 holdings, it effectively diversifies company-specific risk .
Alternatives
State Street SPDR S&P Regional Banking ETF is not a suitable option for investors seeking to outperform the Financials ETFs segment of the market. Instead, there are other ETFs in the space which investors should consider.
Invesco Bloomberg Financial Data Providers ETF (FDIQ) tracks BLOOMBERG FINANCIAL DATA PROVIDERS INDEX and the iShares U.S. Regional Banks ETF (IAT) tracks Dow Jones U.S. Select Regional Banks Index. Invesco Bloomberg Financial Data Providers ETF has $43.38 million in assets, iShares U.S. Regional Banks ETF has $646.39 million. FDIQ has an expense ratio of 0.35% and IAT changes 0.37%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Financials ETFs
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Is State Street SPDR S&P Regional Banking ETF (KRE) a Strong ETF Right Now?
Launched on 06/19/2006, the State Street SPDR S&P Regional Banking ETF (KRE - Free Report) is a smart beta exchange traded fund offering broad exposure to the Financials ETFs category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
Because the fund has amassed over $4.01 billion, this makes it one of the largest ETFs in the Financials ETFs. KRE is managed by State Street Investment Management. This particular fund seeks to match the performance of the S&P Regional Banks Select Industry Index before fees and expenses.
The S&P Regional Banks Select Industry Index represents the regional banks segment of the S&P Total Market Index.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
With one of the least expensive products in the space, this ETF has annual operating expenses of 0.35%.
It has a 12-month trailing dividend yield of 2.19%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
For KRE, it has heaviest allocation in the Financials sector --about 100% of the portfolio.
When you look at individual holdings, East West Bancorp Inc (EWBC) accounts for about 1.15% of the fund's total assets, followed by United Bankshares Inc (UBSI) and Hancock Whitney Corp (HWC).
Its top 10 holdings account for approximately 11.3% of KRE's total assets under management.
Performance and Risk
Year-to-date, the State Street SPDR S&P Regional Banking ETF has gained about 15.6% so far, and is up about 25.57% over the last 12 months (as of 11/03/2026). KRE has traded between $58.63 $77.93 in this past 52-week period.
KRE has a beta of 0.87 and standard deviation of 26.63% for the trailing three-year period, which makes the fund a high risk choice in the space. With about 169 holdings, it effectively diversifies company-specific risk .
Alternatives
State Street SPDR S&P Regional Banking ETF is not a suitable option for investors seeking to outperform the Financials ETFs segment of the market. Instead, there are other ETFs in the space which investors should consider.
Invesco Bloomberg Financial Data Providers ETF (FDIQ) tracks BLOOMBERG FINANCIAL DATA PROVIDERS INDEX and the iShares U.S. Regional Banks ETF (IAT) tracks Dow Jones U.S. Select Regional Banks Index. Invesco Bloomberg Financial Data Providers ETF has $43.38 million in assets, iShares U.S. Regional Banks ETF has $646.39 million. FDIQ has an expense ratio of 0.35% and IAT changes 0.37%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Financials ETFs
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.