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

Core Insights - The State Street SPDR S&P Capital Markets ETF (KCE) debuted on November 8, 2005, and offers broad exposure to the Financials ETFs category [1] - KCE is managed by State Street Investment Management and aims to match the performance of the S&P Capital Markets Select Industry Index, with assets exceeding $541.31 million [5] - The ETF has a low expense ratio of 0.35% and a 12-month trailing dividend yield of 1.56% [6] Fund Characteristics - KCE focuses entirely on the Financials sector, with approximately 100% of its portfolio allocated to this area [7] - The top holdings include Galaxy Digital Inc A (2.7% of total assets), Robinhood Markets Inc A, and Coinbase Global Inc Class A, with the top 10 holdings representing about 19.33% of total assets [8] Performance Metrics - Year-to-date, KCE has increased by approximately 6.01%, but it has decreased by about 1.04% over the past year, trading between $108.52 and $157.83 in the last 52 weeks [9] - The ETF has a beta of 1.28 and a standard deviation of 21.18% over the trailing three-year period, indicating a higher risk profile [10] Alternatives and Comparisons - KCE may not be suitable for investors looking to outperform the Financials ETFs segment, with alternatives like the iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI) available, which has $1.51 billion in assets and an expense ratio of 0.38% [11] - Traditional market cap weighted ETFs are suggested for investors seeking lower-cost and lower-risk options [12]