KCE - ETF AI Analysis

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SPDR S&P Capital Markets ETF (KCE)

Rating:70Outperform

Price Target:―

KCE, the SPDR S&P Capital Markets ETF, has a solid overall rating driven mainly by strong holdings like Victory Capital, Cboe Global Markets, CME Group, and Affiliated Managers Group, which benefit from robust financial performance, positive earnings call commentary, and strategic growth initiatives. These strengths are partly offset by weaker spots such as StoneX Group and Virtu Financial, where profitability, cash flow, and leverage issues, along with some bearish technical signals and high valuations in several holdings, introduce risk and can hold back the fund’s rating. The main risk factor is its focus on capital markets companies, which ties the ETF’s fortunes closely to market conditions, trading activity, and sector-specific financial pressures.

Positive Factors

Broad Mix of Capital Markets Stocks

The ETF holds many different financial companies involved in capital markets, which helps spread risk across the industry.

Strong Recent Performance

The fund has shown steady gains over the past month, three months, and year to date, indicating positive recent momentum.

Multiple Strong-Performing Top Holdings

Several of the largest positions, such as WisdomTree and Perella Weinberg Partners, have delivered strong year-to-date performance that supports the fund’s returns.

Negative Factors

Heavy Concentration in Financials

Almost all of the portfolio is in the financial sector, so the fund is highly sensitive to downturns in financial markets.

Very Limited Geographic Diversification

With nearly all assets in U.S. companies, the ETF offers little protection if the U.S. market struggles compared with other regions.

Moderate Expense Ratio

The fund’s expense ratio is not especially low, which slightly reduces the net returns investors keep over time.

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

AUM471.38M

RegionNorth America

Expense Ratio0.35%

Beta1.15

IssuerSPDR

Inception DateNov 08, 2005

Dividend Yield1.73%

Asset ClassEquity

Index TrackedS&P Capital Markets Select Industry

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume22,188

30 Day Avg. Volume22,320

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

179.82

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering65

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

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 work in capital markets, such as investment banks, asset managers, and brokerage firms. Well-known holdings include Cboe Global Markets and WisdomTree. Someone might invest in KCE to get targeted exposure to the financial sector and to spread their money across many different capital markets companies instead of picking individual stocks. A key risk is that it is heavily tied to financial stocks, so it can rise or fall sharply with changes in the financial sector and overall market.

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 a pure U.S. capital-markets play, and its story right now is all about rising deal flow and trading activity. Fast-climbing names like StoneX Group and WisdomTree are doing the heavy lifting, while steady performers such as CME Group and Cboe Global Markets give the fund a more reliable backbone. Tradeweb and Victory Capital add to the upward pull with generally positive, if not explosive, momentum. On the flip side, Affiliated Managers, Interactive Brokers, and Perella Weinberg are losing a bit of steam, modestly tugging on overall returns.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
WT	WisdomTree	2.47%	$11.63M	$2.35B	91.92%	71 Outperform
SNEX	StoneX Group	2.08%	$9.78M	$5.67B	41.00%	58 Neutral
CBOE	Cboe Global Markets	2.01%	$9.48M	$31.53B	41.44%	75 Outperform
CME	CME Group	2.00%	$9.44M	$113.72B	24.56%	74 Outperform
TW	Tradeweb Markets	1.96%	$9.25M	$29.36B	-6.48%	71 Outperform
DFIN	Donnelley Financial Solutions	1.96%	$9.23M	$1.27B	5.08%	64 Neutral
BEN	Franklin Resources	1.95%	$9.17M	$13.66B	29.13%	74 Outperform
VIRT	Virtu Financial	1.93%	$9.08M	$6.34B	12.02%	64 Neutral
JHG	Janus Henderson Group	1.89%	$8.92M	$7.91B	37.99%	73 Outperform
VCTR	Victory Capital Holdings	1.89%	$8.90M	$4.48B	19.56%	80 Outperform

KCE Technical Analysis

Technical Analysis Sentiment

Negative

Last Price―

Price Trends

50DMA

151.90

Negative

100DMA

149.26

Negative

200DMA

148.34

Negative

Market Momentum

MACD

-2.15

Positive

RSI

38.24

Neutral

STOCH

45.09

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For KCE, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 146.51, equal to the 50-day MA of 151.90, and equal to the 200-day MA of 148.34, indicating a bearish trend. The MACD of -2.15 indicates Positive momentum. The RSI at 38.24 is Neutral, neither overbought nor oversold. The STOCH value of 45.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KCE.

KCE Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
KCE	―	―	$471.38M	0.35%	70 Outperform
IAT	―	―	$605.81M	0.38%	74 Outperform
REM	―	―	$583.17M	0.48%	62 Neutral
KIE	―	―	$448.14M	0.35%	72 Outperform
KBWD	―	―	$439.59M	5.39%	64 Neutral
IAK	―	―	$419.03M	0.38%	75 Outperform

Performance Comparison

KCE

SPDR S&P Capital Markets ETF

141.18

19.52

16.04%

IAT

iShares U.S. Regional Banks ETF

―

REM

iShares Mortgage Real Estate ETF

―

KIE

SPDR S&P Insurance ETF

―

KBWD

Invesco KBW High Dividend Yield Financial ETF

―

IAK

iShares U.S. Insurance 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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