Should You Invest in the State Street SPDR S&P Capital Markets ETF (KCE)?

Core Insights - The State Street SPDR S&P Capital Markets ETF (KCE) is a passively managed ETF launched on November 8, 2005, designed to provide broad exposure to the Financials - Brokers/Capital markets segment of the equity market [1] - KCE has amassed assets over $554.01 million and seeks to match the performance of the S&P Capital Markets Select Industry Index [3] - The ETF has an annual operating expense ratio of 0.35% and a 12-month trailing dividend yield of 1.56% [4] Sector and Holdings - KCE offers diversified exposure to the Financials sector, with approximately 100% of its portfolio allocated to this sector [5] - The top holdings include Galaxy Digital Inc A (GLXY) at 2.7% of total assets, followed by Robinhood Markets Inc A (HOOD) and Coinbase Global Inc Class A (COIN), with the top 10 holdings accounting for about 19.33% of total assets [6] Performance Metrics - Year-to-date, KCE has gained about 6.26%, and it was up approximately 2.86% over the last 12 months as of November 17, 2025 [7] - The ETF has a beta of 1.28 and a standard deviation of 21.14% for the trailing three-year period, indicating a high-risk profile [7] Alternatives - KCE has a Zacks ETF Rank of 4 (Sell), suggesting it may not be the best option for investors seeking exposure to the Financials ETFs segment [8] - An alternative is the iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI), which tracks the Dow Jones U.S. Select Investment Services Index and has $1.59 billion in assets with an expense ratio of 0.38% [9]