Should You Invest in the SPDR S&P Regional Banking ETF (KRE)?

Core Viewpoint - The SPDR S&P Regional Banking ETF (KRE) provides investors with broad exposure to the Financials - Regional Banks segment, appealing to both retail and institutional investors due to its low costs, transparency, and tax efficiency [1][2]. Group 1: ETF Overview - KRE was launched on June 19, 2006, and is passively managed to match the performance of the S&P Regional Banks Select Industry Index [1][3]. - The ETF has accumulated over $3.24 billion in assets, positioning it among the larger ETFs in the regional banking sector [3]. - It is sponsored by State Street Investment Management [3]. Group 2: Costs and Performance - KRE has annual operating expenses of 0.35%, making it one of the least expensive options in its category [4]. - The ETF has a 12-month trailing dividend yield of 2.66% [4]. - Year-to-date, KRE has experienced a loss of approximately 1.26% but has gained about 8.47% over the past year as of August 4, 2025 [7]. Group 3: Sector Exposure and Holdings - The ETF is fully allocated to the Financials sector, with about 100% of its portfolio dedicated to this area [5]. - Zions Bancorp Na (ZION) constitutes about 2.61% of total assets, with the top 10 holdings making up approximately 25.25% of total assets under management [6]. Group 4: Risk and Alternatives - KRE has a beta of 0.91 and a standard deviation of 31.72% over the trailing three-year period, indicating a higher risk profile [7]. - The ETF carries a Zacks ETF Rank of 3 (Hold), suggesting it is a viable option for investors seeking exposure to the Financials ETFs area [8]. - Alternatives include the Invesco KBW Regional Banking ETF (KBWR) and the iShares U.S. Regional Banks ETF (IAT), with respective assets of $48.70 million and $592.78 million [9].