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KCE - ETF AI Analysis

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KCE

SPDR S&P Capital Markets ETF (KCE)

Rating:68Neutral
Price Target:
KCE, the SPDR S&P Capital Markets ETF, has a solid overall rating, suggesting it holds a generally attractive mix of capital markets companies with some notable strengths but also a few concerns. Strong contributors like Northern Trust, Interactive Brokers, T. Rowe Price, Franklin Resources, and Charles Schwab support the fund’s quality through solid financial performance, positive earnings calls, and strategic growth initiatives, though some face valuation or technical caution. On the other hand, weaker names such as Perella Weinberg Partners and firms with bearish technical trends or financial challenges introduce risk, and the fund’s focus on capital markets companies means it is exposed to sector-specific volatility.
Positive Factors
Recent Performance Momentum
The ETF has shown steady gains so far this year, supported by positive one-month and three-month performance.
Strong Financial Sector Leaders
Several top holdings like WisdomTree, Bank of New York Mellon, State Street, and Ameriprise Financial have delivered strong year-to-date results, helping drive the fund’s returns.
Focused Exposure to U.S. Financials
The fund’s heavy tilt toward U.S.-based financial companies gives investors targeted exposure to the capital markets industry in a single ETF.
Negative Factors
High Sector Concentration
With most assets in the financial sector, the ETF is vulnerable if capital markets or financial stocks experience a downturn.
Underperforming Top Holdings
Some key positions such as Coinbase, Robinhood, Artisan Partners, and LPL Financial have shown weak year-to-date performance, which can drag on overall returns.
Limited Geographic Diversification
Almost all of the fund’s assets are invested in U.S. companies, offering little protection if the U.S. market faces broad weakness.

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

KCE Summary

KCE is the SPDR S&P Capital Markets ETF, which follows the S&P Capital Markets Select Industry Index. It focuses on U.S. financial companies that help move money around the markets, such as investment banks, asset managers, and trading platforms. Well-known holdings include Coinbase and Bank of New York Mellon. Someone might invest in KCE to get targeted exposure to the financial sector and diversify beyond just traditional banks or tech stocks. A key risk is that it is heavily tied to financial markets, so its price can swing sharply when interest rates, regulations, or market conditions change.
How much will it cost me?The SPDR S&P Capital Markets ETF (KCE) has an expense ratio of 0.35%, which means you’ll pay $3.50 per year for every $1,000 invested. This is slightly higher than average because it is a sector-focused ETF, which typically requires more active management compared to broad market index funds.
What would affect this ETF?The SPDR S&P Capital Markets ETF (KCE) could benefit from positive trends like increased financial innovation, growth in investment activities, and rising demand for asset management services, especially in the U.S. However, it may face challenges from economic downturns, regulatory changes in the financial sector, or rising interest rates, which could negatively impact capital markets and its top holdings like investment banks and brokerage firms.

KCE Top 10 Holdings

KCE is essentially a bet on U.S. capital-markets powerhouses, with asset managers and custodial banks steering the ship. State Street and Bank of New York Mellon have been rising steadily, giving the fund a solid backbone, while Ameriprise and Virtus add more traditional wealth-management muscle with generally supportive, if sometimes mixed, momentum. On the flip side, Robinhood and LPL Financial have been more of a drag this year, as profitability and valuation worries weigh on their stocks. Overall, performance is being driven by established financial players rather than flashy disruptors.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Donnelley Financial Solutions1.95%$8.74M$1.21B-22.85%
64
Neutral
Virtus Investment Partners1.78%$8.02M$1.11B-13.64%
70
Neutral
Ameriprise Financial1.78%$7.99M$47.55B3.77%
64
Neutral
WisdomTree1.76%$7.90M$2.97B45.25%
71
Outperform
Stifel Financial1.74%$7.82M$12.40B10.60%
75
Outperform
State Street1.74%$7.80M$51.31B64.22%
75
Outperform
Charles Schwab1.73%$7.78M$177.34B6.40%
74
Outperform
Artisan Partners1.73%$7.76M$3.19B-13.06%
73
Outperform
Bank of New York Mellon1.72%$7.75M$109.07B56.78%
75
Outperform
LPL Financial1.72%$7.74M$26.29B-13.85%
66
Neutral

KCE Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
153.06
Positive
100DMA
148.32
Positive
200DMA
148.13
Positive
Market Momentum
MACD
RSI
STOCH
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For KCE, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 155.77, equal to the 50-day MA of 153.06, and equal to the 200-day MA of 148.13, indicating a bullish trend. The MACD of ― indicates undefined momentum. The RSI at ― is undefined, neither overbought nor oversold. The STOCH value of ― is undefined, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KCE.

KCE Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$453.19M0.35%
68
Neutral
$669.45M0.38%
74
Outperform
$630.45M0.35%
71
Outperform
$533.43M0.48%
62
Neutral
$510.98M0.38%
75
Outperform
$407.00M5.39%
64
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
KCE
SPDR S&P Capital Markets ETF
161.83
10.09
6.65%
IAT
iShares U.S. Regional Banks ETF
KIE
SPDR S&P Insurance ETF
REM
iShares Mortgage Real Estate ETF
IAK
iShares U.S. Insurance ETF
KBWD
Invesco KBW High Dividend Yield Financial 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.
DisclaimerThis 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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