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KRE - ETF AI Analysis

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KRE

SPDR S&P Regional Banking ETF (KRE)

Rating:74Outperform
Price Target:
KRE, the SPDR S&P Regional Banking ETF, has an overall rating that reflects generally solid quality driven by many regional banks with strong financial performance, attractive valuations, and positive technical trends. Key holdings like Regions Financial and Home Bancshares support the fund’s rating through robust revenue growth, solid profitability, and strategic initiatives such as mergers and other growth plans. The main risk is that the ETF is concentrated in regional banks, where issues like legal challenges, credit loss provisions, and overbought technical conditions at some holdings could increase volatility.
Positive Factors
Broad Regional Bank Exposure
The ETF holds many different regional bank stocks, which helps spread risk across multiple companies rather than relying on just a few.
Strong Recent Performance
The fund has shown strong gains so far this year and in recent months, indicating positive momentum in its regional banking holdings.
Balanced Top Holdings
The largest positions each make up a similar and relatively small share of the fund, reducing the impact if any single bank runs into trouble.
Negative Factors
Heavy Sector Concentration
Almost all of the ETF’s assets are in financial stocks, so it is highly sensitive to problems in the banking sector.
Single-Country Focus
With nearly all exposure in U.S. companies, the fund offers little geographic diversification and is closely tied to the U.S. economy and interest-rate environment.
Moderate Expense Ratio
The fund’s fee is not especially low, which means a noticeable portion of returns will go toward covering costs over time.

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

KRE Summary

KRE is the SPDR S&P Regional Banking ETF, which follows the S&P Regional Banks Select Industry Index. It invests mainly in U.S. regional banks, the smaller and mid-sized lenders that serve local communities and businesses. Some of its well-known holdings include M&T Bank and Regions Financial. Investors might consider KRE if they want targeted exposure to the financial sector and diversification across many regional banks instead of picking individual stocks. However, this ETF is heavily tied to the health of U.S. regional banks, so its price can swing sharply with changes in interest rates, the economy, or banking news.
How much will it cost me?The SPDR S&P Regional Banking ETF (KRE) has an expense ratio of 0.35%, which means you’ll pay $3.50 per year for every $1,000 invested. This cost is slightly higher than average for ETFs because it is a sector-focused fund, which typically requires more active management compared to broad-market index funds. However, it remains relatively affordable for investors seeking targeted exposure to regional banks.
What would affect this ETF?The SPDR S&P Regional Banking ETF (KRE) could benefit from economic growth in the U.S., which may drive increased lending and business activity for regional banks, as well as potential mergers and acquisitions in the sector. However, rising interest rates or economic slowdowns could negatively impact loan demand and profitability for these banks, while regulatory changes in the financial sector might add operational challenges. The ETF’s focus on U.S. regional banks means it is closely tied to local economic conditions and the performance of its top holdings, such as Cadence Bank and Citizens Financial.

KRE Top 10 Holdings

KRE is essentially a pure play on U.S. regional banks, with performance driven by a broad cast rather than one star. Names like Popular, M&T Bank, and Cullen/Frost Bankers have been rising steadily, giving the fund a solid tailwind as earnings and sentiment improve across the group. Home Bancshares and Citizens Financial are also pulling their weight, helped by deal activity and operational efficiency. There aren’t any obvious villains dragging the fund right now—most holdings are moving in the same generally positive direction—though momentum looks a bit stretched, making this more of a cyclical ride than a smooth cruise.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Cullen/Frost Bankers1.42%$65.63M$10.16B33.93%
77
Outperform
Home Bancshares1.42%$65.47M$6.28B12.57%
77
Outperform
Pinnacle Financial Partners1.41%$65.32M$15.84B22.18%
73
Outperform
Popular1.41%$65.06M$11.18B54.79%
77
Outperform
Citizens Financial1.39%$64.05M$30.33B53.03%
75
Outperform
UMB Financial1.38%$63.96M$11.06B34.45%
77
Outperform
M&T Bank1.38%$63.86M$35.80B33.14%
76
Outperform
Commerce Bancshares1.37%$63.20M$8.66B3.86%
73
Outperform
SouthState Corporation1.37%$63.17M$10.21B13.29%
79
Outperform
Old National Bancorp Capital1.36%$62.87M$10.10B30.59%
80
Outperform

KRE Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
73.07
Positive
100DMA
69.92
Positive
200DMA
67.28
Positive
Market Momentum
MACD
RSI
STOCH
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For KRE, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 75.65, equal to the 50-day MA of 73.07, and equal to the 200-day MA of 67.28, 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 KRE.

KRE Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$4.64B0.35%
74
Outperform
$6.69B0.35%
74
Outperform
$4.43B0.38%
72
Outperform
$2.37B0.08%
72
Outperform
$2.17B0.38%
72
Outperform
$1.65B0.35%
73
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
KRE
SPDR S&P Regional Banking ETF
76.06
17.82
30.60%
KBWB
Invesco KBW Bank ETF
IYF
iShares U.S. Financials ETF
FNCL
Fidelity MSCI Financials Index ETF
IYG
iShares US Financial Services ETF
KBE
SPDR S&P Bank 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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