KRE - ETF AI Analysis

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SPDR S&P Regional Banking ETF (KRE)

Rating:74Outperform

Price Target:―

KRE, the SPDR S&P Regional Banking ETF, has a solid overall rating driven mainly by strong, well-run regional banks with healthy financial performance and reasonable valuations. Standout holdings like Huntington Bancshares and Wintrust Financial support the fund’s quality through robust earnings, strategic growth, and generally bullish technical trends, while some banks face issues such as rising deposit costs, loan charge-offs, or revenue growth challenges that slightly weigh on the rating. The main risk factor is the ETF’s concentrated exposure to regional banks, which makes it sensitive to sector-specific pressures like credit quality, funding costs, and local economic conditions.

Positive Factors

Broad Regional Bank Exposure

The ETF holds many different U.S. regional banks, spreading risk across a wide group of companies instead of relying on just a few.

Generally Strong Top Holdings

Most of the largest positions have shown positive year-to-date performance, which has supported the fund’s overall results.

Solid Asset Base

The fund manages a large pool of assets, which can help with trading liquidity and make it easier for investors to get in and out.

Negative Factors

Heavy Sector Concentration

Almost all of the ETF is invested in financials, so it is highly sensitive to problems in the banking sector.

Single-Country Focus

With nearly all exposure in the United States, the fund offers little protection if the U.S. economy or banking system weakens.

Moderate Expense Ratio

The fund’s fee is not especially low for a passive ETF, which slightly reduces the net return investors keep over time.

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

AUM4.89B

RegionNorth America

Expense Ratio0.35%

Beta1.00

IssuerSPDR

Inception DateJun 19, 2006

Dividend Yield2.24%

Asset ClassEquity

Index TrackedS&P Regional Banks Select Industry

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume16,834,240

30 Day Avg. Volume16,004,616

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

77.29

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering145

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

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 banks that lend to local families and businesses. Examples of companies in this ETF include M&T Bank and Huntington Bancshares. Someone might invest in KRE to get diversified exposure to many regional banks at once, instead of picking individual bank stocks, and to benefit if the U.S. economy and local lending stay strong. A key risk is that it is heavily tied to the banking sector, so it can rise or fall sharply with financial and interest-rate conditions.

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, so the whole story lives inside the financial sector. Recent strength from names like Cadence Bank, Citizens Financial, and M&T Bank has been giving the fund a helpful tailwind, as these rising regional lenders benefit from solid earnings and upbeat sentiment. Steadier performers such as SouthState and Popular add a bit of balance rather than fireworks. With no single bank dominating the lineup, performance is driven by a broad pack of midsize U.S. lenders rather than one or two headline names.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
BPOP	Popular	2.18%	$106.30M	$9.73B	46.55%	77 Outperform
WBS	Webster Financial	2.06%	$100.10M	$11.68B	30.98%	77 Outperform
MTB	M&T Bank	2.04%	$99.35M	$35.62B	20.15%	76 Outperform
CFR	Cullen/Frost Bankers	2.03%	$98.89M	$9.12B	3.63%	77 Outperform
VLY	Valley National Bancorp	2.03%	$98.69M	$7.40B	40.12%	73 Outperform
CFG	Citizens Financial	2.01%	$98.02M	$27.64B	45.48%	75 Outperform
SSB	SouthState Corporation	1.98%	$96.56M	$10.42B	6.16%	79 Outperform
WTFC	Wintrust Financial	1.98%	$96.56M	$10.39B	26.25%	78 Outperform
RF	Regions Financial	1.98%	$96.30M	$26.36B	28.52%	79 Outperform
COLB	Columbia Banking System	1.96%	$95.28M	$9.34B	19.80%	77 Outperform

KRE Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

68.42

Positive

100DMA

64.85

Positive

200DMA

62.49

Positive

Market Momentum

MACD

1.07

Positive

RSI

59.34

Neutral

STOCH

39.69

Neutral

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 70.73, equal to the 50-day MA of 68.42, and equal to the 200-day MA of 62.49, indicating a bullish trend. The MACD of 1.07 indicates Positive momentum. The RSI at 59.34 is Neutral, neither overbought nor oversold. The STOCH value of 39.69 is Neutral, 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
KRE	―	―	$4.89B	0.35%	74 Outperform
KBWB	―	―	$6.10B	0.35%	74 Outperform
IYF	―	―	$3.99B	0.38%	72 Outperform
FNCL	―	―	$2.35B	0.08%	72 Outperform
FXO	―	―	$2.12B	0.61%	73 Outperform
IYG	―	―	$2.02B	0.38%	72 Outperform

Performance Comparison

KRE

SPDR S&P Regional Banking ETF

71.90

12.49

21.02%

KBWB

Invesco KBW Bank ETF

―

IYF

iShares U.S. Financials ETF

―

FNCL

Fidelity MSCI Financials Index ETF

―

FXO

First Trust Financials AlphaDEX Fund

―

IYG

iShares US Financial Services 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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