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

Launched on June 19, 2006, the State Street SPDR S&P Regional Banking ETF (KRE) is a passively managed exchange traded fund designed to provide a broad exposure to the Financials - Regional Banks segment of the equity market.An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Financials - Regional Banks is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 2, placing it in top 13%.Index DetailsThe fund is sponsored by State Street Investment Management. It has amassed assets over $3.79 billion, making it one of the larger ETFs attempting to match the performance of the Financials - Regional Banks segment of the equity market. KRE seeks to match the performance of the S&P Regional Banks Select Industry Index before fees and expenses.The S&P Regional Banks Select Industry Index represents the regional banks segment of the S&P Total Market Index.CostsCost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.Annual operating expenses for this ETF are 0.35%, making it one of the least expensive products in the space.It has a 12-month trailing dividend yield of 2.36%.Sector Exposure and Top HoldingsEven though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.This ETF has heaviest allocation in the Financials sector -- about 100% of the portfolio.Looking at individual holdings, Cadence Bank (CADE) accounts for about 2.16% of total assets, followed by First Horizon Corp (FHN) and Valley National Bancorp (VLY).The top 10 holdings account for about 20.25% of total assets under management.Performance and RiskThe ETF has added about 13.04% and it's up approximately 4.83% so far this year and in the past one year (as of 12/11/2025), respectively. KRE has traded between $48.81 and $67.05 during this last 52-week period.The ETF has a beta of 0.91 and standard deviation of 31.55% for the trailing three-year period, making it a high risk choice in the space. With about 150 holdings, it effectively diversifies company-specific risk.AlternativesState Street SPDR S&P Regional Banking ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, KRE is a good option for those seeking exposure to the Financials ETFs area of the market. Investors might also want to consider some other ETF options in the space.Invesco KBW Regional Banking ETF (KBWR) tracks KBW Nasdaq Regional Banking Index and the iShares U.S. Regional Banks ETF (IAT) tracks Dow Jones U.S. Select Regional Banks Index. Invesco KBW Regional Banking ETF has $53.48 million in assets, iShares U.S. Regional Banks ETF has $584.57 million. KBWR has an expense ratio of 0.35%, and IAT charges 0.38%.Bottom LineTo learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.Boost Your Portfolio with Our Top ETF InsightsZacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.Don’t miss out on this valuable resource. It’s free!Get it now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report State Street SPDR S&P Regional Banking ETF (KRE): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks