Is SPDR S&P Capital Markets ETF (KCE) a Strong ETF Right Now?

Core Insights - The SPDR S&P Capital Markets ETF (KCE) is a smart beta ETF launched on November 8, 2005, designed to provide broad exposure to the Financials ETFs category [1] Fund Overview - KCE is managed by State Street Global Advisors and has accumulated over $548.24 million in assets, categorizing it as an average-sized ETF in the Financials sector [5] - The fund aims to match the performance of the S&P Capital Markets Select Industry Index, which represents the capital markets segment of the S&P Total Market Index [5] Cost Structure - KCE has annual operating expenses of 0.35%, making it one of the least expensive options in its category [6] - The fund offers a 12-month trailing dividend yield of 1.46% [6] Sector Exposure and Holdings - The ETF is fully allocated to the Financials sector, with Coinbase Global Inc Class A (COIN) making up approximately 2.4% of total assets, followed by Robinhood Markets Inc A (HOOD) and Carlyle Group Inc (CG) [7][8] - The top 10 holdings constitute about 19.08% of total assets under management [8] Performance Metrics - Year-to-date, KCE has gained approximately 13.18%, and it has increased by about 29.93% over the last 12 months as of July 29, 2025 [9] - The ETF has traded between $108.52 and $155.52 in the past 52 weeks [9] - KCE has a beta of 1.23 and a standard deviation of 22.51% over the trailing three-year period, indicating a higher risk profile [10] Alternatives - For investors seeking to outperform the Financials ETFs segment, alternatives such as the iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI) are available, which tracks the Dow Jones U.S. Select Investment Services Index and has $1.45 billion in assets with an expense ratio of 0.40% [11]