Back to top

Image: Bigstock

Bank ETF (KRE) Hits New 52-Week High

Read MoreHide Full Article

For investors looking for momentum, SPDR S&P Regional Banking ETF (KRE - Free Report) is probably a suitable pick. The fund just hit a 52-week high — up roughly 33.8% from its 52-week low of $43.95/share.

Does it have more gains in store? Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:

KRE in Focus

The underlying S&P Regional Banks Select Industry Index represents the regional banks segment of the S&P Total Market Index. The fund charges 35 bps in fees (see all financial ETFs here).

Why the Move?

Steepening yield curve thanks to a Wall Street rally, favorable earnings picture and a value focus pushed bank stocks and the related ETFs higher lately. Since banks borrow money at short-term rates and lend capital at long-term rates, steepening of the yield curve is always a plus for bank ETFs. On Dec 12, the spread between the 10-year and two-year treasury yield stood at 24 basis points versus 16 percentage points recorded at the start of the year, benefitting bank stocks and ETFs.

More Gains Ahead?

The fund has a Zacks ETF Rank #3 (Hold). It also has a positive weighted alpha of 22.30, which gives cues of further rally.

Want key ETF info delivered straight to your inbox?

Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free>>


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


SPDR-KBW REG BK (KRE) - free report >>