Is SPDR S&P Regional Banking ETF (KRE) a Strong ETF Right Now?

Core Viewpoint - The SPDR S&P Regional Banking ETF (KRE) is a smart beta ETF designed to provide broad exposure to the financial sector, specifically regional banks, and has accumulated over $3.64 billion in assets under management [1][5]. Fund Overview - KRE was launched on June 19, 2006, and aims to match the performance of the S&P Regional Banks Select Industry Index [1][5]. - The fund is managed by State Street Global Advisors and has an annual operating expense ratio of 0.35%, making it one of the least expensive options in the financial ETFs space [5][6]. Performance Metrics - KRE has a trailing 12-month dividend yield of 2.54% and has returned approximately 3.31% year-to-date, with an increase of about 8.92% over the past year as of July 30, 2025 [6][9]. - The ETF has traded between $48.81 and $68.90 in the last 52 weeks [9]. Holdings and Sector Exposure - The ETF is fully allocated to the Financials sector, with Zions Bancorp Na (ZION) making up about 2.61% of total assets, and the top 10 holdings accounting for approximately 25.25% of total assets [7][8]. - KRE consists of around 147 holdings, which helps to diversify company-specific risk [10]. Risk Profile - KRE has a beta of 0.89 and a standard deviation of 31.72% over the trailing three-year period, indicating a higher risk profile compared to other funds in the space [10]. Alternatives - Other ETFs in the regional banking sector include the Invesco KBW Regional Banking ETF (KBWR) and the iShares U.S. Regional Banks ETF (IAT), which have different asset sizes and expense ratios [11][12].