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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, appears to offer generally solid quality by holding many regional banks with improving financial performance and supportive technical trends. Strong contributors like Texas Capital Bancshares, Popular, Columbia Banking System, Cullen/Frost Bankers, and F.N.B. help the fund’s rating through robust revenue growth, attractive valuations, and shareholder-friendly actions such as buybacks. However, weaker names like Flagstar Financial, with ongoing financial challenges and unattractive valuation, and banks facing legal or credit risks add some uncertainty, and the ETF’s focus on regional banking means it is exposed to sector-specific risks such as interest rate and credit conditions.
Positive Factors
Strong Recent Performance
The ETF has shown solid gains so far this year and over the past month, indicating positive recent momentum in regional bank stocks.
Broad Regional Bank Diversification
The fund spreads its holdings across many different regional banks, so no single stock dominates the portfolio.
Healthy Asset Base
The ETF manages a large pool of assets, which can help support trading liquidity and reduce trading costs for investors.
Negative Factors
Heavy Sector Concentration
Almost all of the fund is invested in financial stocks, so it is highly exposed to risks specific to the banking sector.
Single-Country Focus
With nearly all assets in U.S. companies, the ETF offers little geographic diversification and is tied closely to the U.S. economy and regulations.
Moderate Expense Ratio
The fund’s fees are not especially low for a passive ETF, which can slightly reduce long-term returns compared with cheaper alternatives.

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

KRE Summary

The SPDR S&P Regional Banking ETF (KRE) is an investment fund that tracks the S&P Regional Banks Select Industry Index, focusing on U.S. regional banks. These are mid-sized banks that serve local communities and businesses. The fund holds many different regional bank stocks, including names like Citizens Financial and Zions Bancorporation, giving you broad exposure to this corner of the financial sector. Someone might invest in KRE to bet on growth in lending and local economies while getting diversification across many banks instead of picking just one. A key risk is that it can be very sensitive to interest rates and banking downturns, so its price can swing sharply.
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 a pure play on U.S. regional banks, so this fund lives and dies with the health of Main Street lenders. Recent strength from names like East West Bancorp, Texas Capital, and Popular has been giving the ETF a helpful tailwind, as these banks ride solid earnings and upbeat outlooks. Valley National and Truist are also pulling their weight with steady, if unspectacular, gains. On the flip side, Western Alliance has been dragging the fund a bit, with more mixed sentiment keeping a lid on its contribution. Overall, it’s a sector-heavy, domestically focused bet on regional banking resilience.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
East West Bancorp1.61%$59.84M$16.80B44.94%
79
Outperform
Western Alliance1.58%$58.85M$8.73B15.03%
71
Outperform
Popular1.58%$58.84M$9.56B56.73%
77
Outperform
Flagstar Financial1.57%$58.44M$5.84B18.24%
55
Neutral
Pinnacle Financial Partners1.56%$58.05M$14.48B-2.02%
73
Outperform
Valley National Bancorp1.55%$57.79M$7.41B56.89%
73
Outperform
Zions Bancorporation National Association1.55%$57.67M$9.02B39.32%
74
Outperform
Truist Financial1.54%$57.30M$63.37B33.62%
70
Outperform
Associated Banc-Corp1.53%$56.89M$4.54B24.97%
74
Outperform
Wintrust Financial1.52%$56.64M$9.97B33.07%
78
Outperform

KRE Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
66.90
Positive
100DMA
67.39
Positive
200DMA
64.42
Positive
Market Momentum
MACD
0.90
Positive
RSI
57.19
Neutral
STOCH
40.12
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 69.27, equal to the 50-day MA of 66.90, and equal to the 200-day MA of 64.42, indicating a bullish trend. The MACD of 0.90 indicates Positive momentum. The RSI at 57.19 is Neutral, neither overbought nor oversold. The STOCH value of 40.12 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
$4.12B0.35%
74
Outperform
$5.41B0.35%
74
Outperform
$3.40B0.38%
72
Outperform
$2.20B0.08%
72
Outperform
$2.00B0.38%
72
Outperform
$1.52B0.38%
73
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
KRE
SPDR S&P Regional Banking ETF
69.82
15.17
27.76%
KBWB
Invesco KBW Bank ETF
IYF
iShares U.S. Financials ETF
FNCL
Fidelity MSCI Financials Index ETF
IYG
iShares US Financial Services ETF
IAI
iShares U.S. Broker-Dealers & Securities Exchanges 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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