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KRE - ETF AI Analysis
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SPDR S&P Regional Banking ETF (KRE)
Rating:70Neutral
Price Target:―
Positive Factors
Strong Individual Performers
Several top holdings, such as Popular and Citizens Financial, have shown strong year-to-date performance, supporting the ETF's returns.
Reasonable Expense Ratio
The ETF has a relatively low expense ratio, making it cost-effective compared to many actively managed funds.
Focused Sector Exposure
The ETF's concentration in the financial sector allows investors to target regional banking opportunities specifically.
Negative Factors
Sector Over-Concentration
The ETF is heavily concentrated in the financial sector, which increases vulnerability to downturns in banking and financial services.
Weak Recent Performance
The fund has struggled in the short term, with negative returns over the past month and three months.
Limited Geographic Diversification
The ETF is almost entirely focused on U.S. companies, offering little exposure to international markets.
KRE vs. SPDR S&P 500 ETF (SPY)
AUM3.51B
RegionNorth America
Expense Ratio0.35%
Beta0.99
IssuerSPDR
Inception DateJun 19, 2006
Dividend Yield2.5%
Asset ClassEquity
Index TrackedS&P Regional Banks Select Industry
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume13,616,441
30 Day Avg. Volume17,657,901
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
71.30Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering147
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
KRE Summary
The SPDR S&P Regional Banking ETF (KRE) is an investment fund that focuses on regional banks in the U.S., following the S&P Regional Banks Select Industry Index. It includes companies like Truist Financial and Citizens Financial, which are well-known names in the banking sector. This ETF is ideal for investors looking to diversify their portfolio with exposure to smaller, community-focused banks that often adapt quickly to local economic changes. However, new investors should be aware that the ETF’s performance is closely tied to the financial sector, which can be sensitive to interest rate changes and economic downturns.
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
The SPDR S&P Regional Banking ETF (KRE) is heavily concentrated in U.S. regional banks, making it a bet on the financial sector’s local players. Valley National Bancorp and Citizens Financial are rising stars, buoyed by strong earnings and strategic initiatives, while Prosperity Bancshares is lagging due to challenges in loan growth and asset quality. Truist Financial and East West Bancorp are steady performers, though mixed signals in revenue growth and cash flow generation temper their outlook. Overall, KRE’s performance hinges on the resilience of regional banks navigating a complex economic landscape.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Cadence Bank | 2.19% | $75.43M | $7.40B | 8.05% | 72 Outperform | |
| Columbia Banking System | 2.16% | $74.60M | $8.28B | -9.43% | 78 Outperform | |
| Valley National Bancorp | 2.16% | $74.58M | $6.38B | 10.60% | 71 Outperform | |
| Citizens Financial | 2.14% | $73.68M | $23.48B | 16.79% | 77 Outperform | |
| Truist Financial | 2.11% | $72.72M | $59.46B | 0.11% | 65 Neutral | |
| Prosperity Bancshares | 2.09% | $72.01M | $6.57B | -16.63% | 74 Outperform | |
| F.N.B. | 2.08% | $71.68M | $5.95B | -0.48% | 75 Outperform | |
| East West Bancorp | 2.02% | $69.71M | $14.74B | 0.50% | 78 Outperform | |
| First Horizon | 2.01% | $69.51M | $10.99B | 8.20% | 72 Outperform | |
| Flagstar Financial | 1.98% | $68.44M | $5.18B | 5.50% | 58 Neutral |
KRE Technical Analysis
Positive
―
Price Trends
61.60
Positive
62.11
Positive
59.26
Positive
Market Momentum
0.54
Negative
60.32
Neutral
88.17
Negative
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 61.23, equal to the 50-day MA of 61.60, and equal to the 200-day MA of 59.26, indicating a bullish trend. The MACD of 0.54 indicates Negative momentum. The RSI at 60.32 is Neutral, neither overbought nor oversold. The STOCH value of 88.17 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KRE.
KRE Peer Comparison
Comparison Results
Performance Comparison
KRE
SPDR S&P Regional Banking ETF
63.33
-1.64
-2.52%
KBWB
Invesco KBW Bank ETF
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―
―
IYF
iShares U.S. Financials ETF
―
―
―
FNCL
Fidelity MSCI Financials Index ETF
―
―
―
FXO
First Trust Financials AlphaDEX Fund
―
―
―
IYG
iShares US Financial Services ETF
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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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