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KBE - AI Analysis
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SPDR S&P Bank ETF (KBE)
Rating:69Neutral
Price Target:
$63.00
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)
AUM1.42B
RegionNorth America
Expense Ratio0.35%
Beta1.05
IssuerSPDR
Inception DateNov 08, 2005
Dividend Yield2.57%
Asset ClassEquity
Index TrackedS&P Banks Select Industry
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume2,298,306
30 Day Avg. Volume1,804,490
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
67.15Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering104
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. financials, with a mix of regional banks and major players driving its performance. Citigroup and Bank of New York Mellon are rising stars, benefiting from strong earnings and strategic initiatives, while JPMorgan Chase and Bank of America are showing mixed results, weighed down by cash flow and deposit challenges. PennyMac Financial and Jackson Financial are lagging, with operational hurdles holding them back. Overall, the fund’s focus on the cyclical banking sector makes it sensitive to economic shifts and interest rate trends.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Comerica | 1.21% | $17.04M | $9.90B | 23.77% | 73 Outperform | |
| PennyMac Financial | 1.18% | $16.72M | $6.73B | 27.09% | 71 Outperform | |
| Wells Fargo | 1.16% | $16.40M | $278.38B | 33.08% | 66 Neutral | |
| Bank of America | 1.13% | $16.01M | $391.61B | 24.31% | 66 Neutral | |
| FB Financial | 1.12% | $15.83M | $2.98B | 10.83% | 64 Neutral | |
| Citigroup | 1.11% | $15.73M | $186.65B | 56.73% | 67 Neutral | |
| Valley National Bancorp | 1.11% | $15.70M | $6.26B | 16.80% | 66 Neutral | |
| Bancorp | 1.11% | $15.69M | $3.65B | 61.47% | 75 Outperform | |
| Bank of New York Mellon | 1.11% | $15.66M | $75.63B | 41.65% | 79 Outperform | |
| Jackson Financial Incorporation | 1.10% | $15.60M | $6.88B | -3.14% | 63 Neutral |
KBE Technical Analysis
Negative
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Price Trends
59.21
Negative
57.70
Negative
55.38
Positive
Market Momentum
-0.61
Negative
41.47
Neutral
61.32
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For KBE, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 57.76, equal to the 50-day MA of 59.21, and equal to the 200-day MA of 55.38, indicating a neutral trend. The MACD of -0.61 indicates Negative momentum. The RSI at 41.47 is Neutral, neither overbought nor oversold. The STOCH value of 61.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KBE.
KBE Peer Comparison
Comparison Results
Performance Comparison
KBE
SPDR S&P Bank ETF
56.48
2.44
4.52%
KBWB
Invesco KBW Bank ETF
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IYF
iShares U.S. Financials ETF
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FNCL
Fidelity MSCI Financials Index ETF
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FXO
First Trust Financials AlphaDEX Fund
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IYG
iShares US Financial Services ETF
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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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