KBE - ETF AI Analysis

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SPDR S&P Bank ETF (KBE)

Rating:70Neutral

Price Target:―

The SPDR S&P Bank ETF (KBE) has a solid overall rating, reflecting the strong performance of several key holdings. Notably, The Bank of New York Mellon contributes positively with its robust revenue growth, strategic advancements in AI and digital assets, and a stable valuation. Wells Fargo also strengthens the fund with its profitability and strategic growth initiatives, despite some financial risks. However, holdings like Eastern Bankshares and Citigroup face challenges such as declining profit margins and high leverage, which slightly temper the ETF's overall score. A key risk factor for this ETF is its concentration in the banking sector, which may expose it to sector-specific volatility.

Positive Factors

Strong Top Holdings

Several top holdings, including Citigroup and Bank of New York Mellon, have delivered strong year-to-date performance, supporting the ETF's overall returns.

Low Expense Ratio

The ETF has a relatively low expense ratio, making it a cost-effective choice for investors compared to other funds.

Focused Exposure to Financials

The ETF provides targeted exposure to the financial sector, which can benefit from rising interest rates and economic growth.

Negative Factors

Sector Concentration Risk

The ETF is heavily concentrated in the financial sector, making it vulnerable to industry-specific downturns.

Weak Short-Term Performance

Recent one-month and three-month performance has been negative, indicating short-term challenges for the fund.

Limited Geographic Diversification

The ETF is almost entirely focused on U.S. companies, offering little protection against international market opportunities or risks.

KBE vs. SPDR S&P 500 ETF (SPY)

AUM1.36B

RegionNorth America

Expense Ratio0.35%

Beta0.95

IssuerSPDR

Inception DateNov 08, 2005

Dividend Yield2.31%

Asset ClassEquity

Index TrackedS&P Banks Select Industry

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume1,436,067

30 Day Avg. Volume1,858,598

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

68.00

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering103

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

KBE Summary

The SPDR S&P Bank ETF (KBE) is an investment fund that focuses on the banking sector, tracking the S&P Banks Select Industry Index. It includes a mix of regional banks and major financial institutions like JPMorgan Chase and Bank of America. This ETF is a good option for investors who want exposure to the financial sector, which plays a key role in the economy. It can offer growth potential, especially when the economy is strong and interest rates rise. However, new investors should know that the ETF’s performance can be heavily influenced by economic cycles and changes in interest rates, which can make it more volatile.

How much will it cost me?The SPDR S&P Bank ETF (KBE) has an expense ratio of 0.35%, meaning you’ll pay $3.50 per year for every $1,000 invested. This is slightly higher than average for ETFs because it is passively managed but focuses on a specific sector, which can involve more specialized tracking costs.

What would affect this ETF?The SPDR S&P Bank ETF (KBE) could benefit from rising interest rates, as banks typically earn more from lending in such environments, and economic growth may drive increased demand for banking services. However, it faces risks from potential regulatory changes or economic slowdowns, which could reduce profitability and loan activity. With its focus on U.S. banks like JPMorgan Chase and Bank of America, the ETF is closely tied to the health of the U.S. economy and financial sector trends.

KBE Top 10 Holdings

The SPDR S&P Bank ETF (KBE) is heavily concentrated in U.S. banking stocks, offering exposure to both regional players and financial giants. Recent performance has been a mixed bag, with Citigroup and Bank of New York Mellon rising steadily thanks to strong earnings and strategic growth initiatives, while PennyMac Financial and Eastern Bankshares are lagging due to cash flow challenges and declining margins. The fund’s focus on the cyclical banking sector means it’s closely tied to interest rate trends and economic shifts, making it a dynamic but potentially volatile choice for investors.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
CMA	Comerica	1.27%	$17.78M	$11.27B	35.22%	71 Outperform
BKU	BankUnited	1.18%	$16.54M	$3.44B	13.77%	74 Outperform
BANC	Banc of California	1.18%	$16.53M	$3.09B	18.46%	71 Outperform
EBC	Eastern Bankshares	1.17%	$16.36M	$4.74B	9.67%	74 Outperform
CADE	Cadence Bank	1.15%	$16.16M	$7.88B	19.87%	72 Outperform
C	Citigroup	1.14%	$15.96M	$198.77B	56.43%	68 Neutral
BK	Bank of New York Mellon	1.13%	$15.89M	$82.55B	49.15%	75 Outperform
WFC	Wells Fargo	1.12%	$15.77M	$284.68B	30.78%	80 Outperform
CFG	Citizens Financial	1.12%	$15.75M	$25.11B	28.13%	75 Outperform
APO	Apollo Global Management	1.11%	$15.57M	$86.53B	-14.78%	75 Outperform

KBE Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

58.05

Positive

100DMA

58.45

Positive

200DMA

55.57

Positive

Market Momentum

MACD

1.14

Negative

RSI

74.20

Negative

STOCH

83.69

Negative

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For KBE, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 58.79, equal to the 50-day MA of 58.05, and equal to the 200-day MA of 55.57, indicating a bullish trend. The MACD of 1.14 indicates Negative momentum. The RSI at 74.20 is Negative, neither overbought nor oversold. The STOCH value of 83.69 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KBE.

KBE Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
KBE	―	―	$1.36B	0.35%	―
KBWB	―	―	$5.89B	0.35%	―
IYF	―	―	$4.05B	0.38%	―
FNCL	―	―	$2.36B	0.08%	―
FXO	―	―	$2.13B	0.62%	―
IYG	―	―	$2.01B	0.38%	―

Performance Comparison

KBE

SPDR S&P Bank ETF

62.79

4.92

8.50%

KBWB

Invesco KBW Bank ETF

―

IYF

iShares U.S. Financials ETF

―

FNCL

Fidelity MSCI Financials Index ETF

―

FXO

First Trust Financials AlphaDEX Fund

―

IYG

iShares US Financial Services ETF

―

Glossary

BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―

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