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KCE - ETF AI Analysis

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KCE

SPDR S&P Capital Markets ETF (KCE)

Rating:69Neutral
Price Target:
KCE, the SPDR S&P Capital Markets ETF, has an overall rating that suggests it is a solid but not flawless option for exposure to capital markets companies. Strong holdings like Moelis & Company and Evercore, which show robust financial performance, revenue growth, and supportive earnings calls, help lift the fund’s quality. However, weaker names such as Perella Weinberg Partners, with financial instability and bearish technical signals, and broader risks like high leverage and cash flow concerns across several holdings, introduce risk that tempers the overall rating.
Positive Factors
Strong Leading Holding
The largest position, StoneX Group, has shown strong gains this year, helping support the fund’s overall results.
Broad Spread Across Many Stocks
The top holdings each make up only a small slice of the portfolio, which helps reduce the impact if any single company struggles.
Moderate Expense Ratio
The fund’s fee is reasonable for a specialized financial-sector ETF, allowing investors to keep more of their returns compared with higher-cost niche funds.
Negative Factors
Heavy Financial Sector Concentration
Almost all of the ETF’s assets are in financial companies, so it can be hit hard if the capital markets or financial sector weaken.
Limited Geographic Diversification
With nearly all holdings in U.S. stocks, the fund offers little protection if the U.S. market faces a downturn.
Mixed Recent Performance
While the ETF has gained over the year, its recent three-month performance has been weak, showing that returns can be bumpy over shorter periods.

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 work in capital markets, such as investment banks, trading firms, and asset managers. Well-known names in the fund include Jefferies and Evercore Partners. Someone might invest in KCE to get diversified exposure to many different financial firms in one simple investment, hoping to benefit from growth in the financial sector. A key risk is that it is heavily tied to financial stocks, so its price can rise or fall sharply with changes in the financial markets and the economy.
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 play on U.S. capital-markets firms, with performance leaning heavily on a handful of rising names. StoneX Group and Acadian Asset Management have been doing the heavy lifting lately, with steady-to-strong gains that help set the tone for the fund. Trading-focused BGC Group and Virtu Financial are also adding some spark, though their momentum looks a bit choppy. On the flip side, Jefferies and Moelis have been lagging this year, acting as a mild brake on an otherwise financials-heavy, U.S.-centric portfolio.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
StoneX Group2.18%$9.92M$8.35B81.44%
58
Neutral
Acadian Asset Management1.96%$8.92M$2.42B153.36%
66
Neutral
Perella Weinberg Partners1.84%$8.38M$1.95B28.44%
46
Neutral
Moelis1.82%$8.26M$5.44B33.03%
78
Outperform
BGC Group1.81%$8.25M$5.34B26.36%
65
Neutral
Jefferies1.80%$8.18M$9.70B1.96%
63
Neutral
Galaxy Digital1.77%$8.06M$10.15B63.30%
Virtu Financial1.76%$8.01M$7.51B21.53%
64
Neutral
Piper Sandler1.76%$7.99M$6.19B47.14%
67
Neutral
Evercore Partners1.75%$7.97M$13.64B76.35%
76
Outperform

KCE Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
142.99
Positive
100DMA
147.64
Positive
200DMA
148.35
Positive
Market Momentum
MACD
2.68
Positive
RSI
58.47
Neutral
STOCH
27.60
Neutral
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 148.60, equal to the 50-day MA of 142.99, and equal to the 200-day MA of 148.35, indicating a bullish trend. The MACD of 2.68 indicates Positive momentum. The RSI at 58.47 is Neutral, neither overbought nor oversold. The STOCH value of 27.60 is Neutral, 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
$449.13M0.35%
69
Neutral
$624.77M0.38%
74
Outperform
$570.80M0.48%
62
Neutral
$457.38M0.35%
71
Outperform
$434.83M5.39%
64
Neutral
$402.99M0.42%
62
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
KCE
SPDR S&P Capital Markets ETF
150.60
24.60
19.52%
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
MORT
VanEck Mortgage REIT Income 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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