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

Core Insights - The State Street SPDR S&P Regional Banking ETF (KRE) is designed to provide broad exposure to the Financials - Regional Banks segment, launched on June 19, 2006 [1] - KRE has gained popularity among retail and institutional investors due to its low costs, transparency, flexibility, and tax efficiency [1][2] Fund Overview - KRE has amassed over $3.79 billion in assets, making it one of the larger ETFs in the Financials - Regional Banks segment [3] - The ETF aims to match the performance of the S&P Regional Banks Select Industry Index [3] Cost Structure - KRE has annual operating expenses of 0.35%, positioning it as one of the least expensive options in its category [4] - The ETF offers a 12-month trailing dividend yield of 2.36% [4] Sector Exposure and Holdings - The ETF is fully allocated to the Financials sector, with about 100% of its portfolio in this area [5] - Cadence Bank (CADE) constitutes approximately 2.16% of total assets, with the top 10 holdings making up about 20.25% of total assets [6] Performance Metrics - KRE has increased by about 13.04% and is up approximately 4.83% year-to-date as of December 11, 2025 [7] - The ETF has traded between $48.81 and $67.05 over the past 52 weeks, with a beta of 0.91 and a standard deviation of 31.55% for the trailing three-year period [7] Alternatives - KRE carries a Zacks ETF Rank of 3 (Hold), indicating it is a viable option for investors seeking exposure to Financials ETFs [8] - Other alternatives include Invesco KBW Regional Banking ETF (KBWR) and iShares U.S. Regional Banks ETF (IAT), with respective assets of $53.48 million and $584.57 million [9]