State Street SPDR S&P Regional Banking ETF (KRE)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
State Street SPDR S&P Regional Banking ETF (KRE) trades at $75.54 with AI Score 44/100 (Grade C). The State Street SPDR S&P Regional Banking ETF (KRE) aims to replicate the performance of the S&P Regional Banks Select Industry Index. Market cap: $3.82B, Sector: Financial services.
Price live · AI analysis from Mar 17, 2026Analyst Coverage for KRE: KRE does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates KRE against Financial Services peers across nine fundamental dimensions and assigns an underweight signal based on the underlying data.
KRE: the 1 perspectives are evenly split.
How is this calculated? →State Street SPDR S&P Regional Banking ETF (KRE) Financial Services Profile
The State Street SPDR S&P Regional Banking ETF (KRE) provides targeted exposure to the U.S. regional banking sector by tracking the S&P Regional Banks Select Industry Index. Utilizing a modified equal-weighted strategy, KRE offers diversification across large, mid, and small-cap regional bank stocks, appealing to investors seeking specific financial sector exposure.
What Is the Investment Thesis for KRE?
KRE presents a targeted investment vehicle for those seeking exposure to the U.S. regional banking sector. Its modified equal-weighted approach mitigates concentration risk, offering diversified exposure across market capitalizations. With a beta of 1.53, KRE exhibits higher volatility compared to the broader market, potentially appealing to investors with a higher risk tolerance seeking amplified returns from the regional banking sector. Growth catalysts include potential interest rate increases, which can expand net interest margins for regional banks, and economic expansion, which can drive loan growth. However, investors should be aware of potential risks such as regulatory changes, credit quality concerns, and sensitivity to economic downturns. As of 2026-03-17, KRE's market capitalization stands at $3.92 billion, reflecting its established presence in the ETF market.
Based on FMP financials and quantitative analysis
KRE Key Highlights
- KRE's objective is to closely track the performance of the S&P Regional Banks Select Industry Index, providing investors with targeted exposure to the regional banking sector.
- The ETF utilizes a modified equal-weighted approach, which helps to reduce concentration risk and provide more balanced exposure across large, mid, and small-cap regional bank stocks.
- KRE's beta of 1.53 indicates that it is more volatile than the overall market, which may appeal to investors seeking higher potential returns but also implies greater risk.
- The ETF's expense ratio is not provided in the source data, so it is Unknown, but it is a critical factor for investors to consider when evaluating the cost-effectiveness of the fund.
- As of 2026-03-17, KRE has a market capitalization of $3.82B, reflecting its established presence and investor interest in the regional banking sector.
Who Are KRE's Competitors?
KRE is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| AAXJ iShares MSCI All Country Asia ex Japan ETF | $117.64 | +3.25% | $4.17B | 47 |
| DEM WisdomTree Emerging Markets High Dividend Fund | $54.35 | +1.82% | $4.05B | 44 |
| EMLP First Trust North American Energy Infrastructure Fund | $43.51 | -0.43% | $3.92B | 50 |
| FNDC Schwab Fundamental International Small Company Index ETF | $49.44 | +1.15% | $3.15B | 47 |
| IFRA iShares U.S. Infrastructure ETF | $62.15 | -0.13% | $4.14B | 47 |
| NXDT NexPoint Diversified Real Estate Trust | $5.53 | +3.08% | $285.77M | 73 |
| GENB Generate Biomedicines, Inc. | $17.03 | -2.18% | $2.18B | 72 |
| SII Sprott Inc. | $118.11 | +2.72% | $3.05B | 71 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are KRE's Key Strengths?
- Targeted exposure to the U.S. regional banking sector.
- Modified equal-weighted approach reduces concentration risk.
- Transparent and rules-based index-tracking methodology.
- Relatively liquid and easily tradable ETF.
What Are KRE's Weaknesses?
- Concentrated exposure to a single sector (regional banking).
- Performance is highly dependent on the health of the regional banking industry.
- Subject to interest rate risk and regulatory changes.
- No dividend yield.
What Could Drive KRE Stock Higher?
- Federal Reserve interest rate decisions impacting net interest margins.
- Economic growth driving loan demand and asset quality.
- Regulatory developments affecting the regional banking sector.
What Are the Key Risks for KRE?
- Economic recession leading to loan losses and reduced profitability.
- Increased competition from fintech companies and larger banks.
- Regulatory changes increasing compliance costs and limiting growth.
- Interest rate volatility impacting net interest margins and asset values.
- Credit risk associated with loan portfolios.
What Are the Growth Opportunities for KRE?
- Interest Rate Hikes: Rising interest rates can significantly boost the profitability of regional banks by expanding their net interest margins. As the Federal Reserve adjusts monetary policy in response to economic conditions, KRE stands to benefit from increased earnings within its constituent holdings. The magnitude and pace of interest rate increases will directly impact the performance of regional banks, making this a key driver for KRE's potential growth. Monitoring Federal Reserve policy and economic indicators is crucial for assessing this growth opportunity.
- Economic Expansion: A growing economy typically leads to increased loan demand from businesses and consumers, benefiting regional banks. As economic activity expands, regional banks experience higher loan volumes and improved asset quality, driving revenue and earnings growth. KRE's performance is closely tied to the overall health of the U.S. economy, making economic expansion a significant growth catalyst. Tracking GDP growth, employment figures, and consumer confidence levels is essential for evaluating this opportunity.
- Regulatory Relief: Changes in banking regulations can significantly impact the profitability and operational efficiency of regional banks. Deregulation or easing of compliance burdens can reduce costs and free up capital for lending and investment activities. KRE's performance could improve if regulatory changes create a more favorable environment for regional banks. Monitoring regulatory developments and their potential impact on the regional banking sector is crucial for assessing this growth opportunity.
- Technological Innovation: Regional banks are increasingly adopting new technologies to improve customer service, streamline operations, and enhance risk management. Investments in digital banking platforms, mobile apps, and data analytics can drive efficiency gains and attract new customers. KRE's performance could benefit from the successful implementation of technological innovations within its constituent holdings. Monitoring technology trends and their adoption by regional banks is essential for evaluating this growth opportunity.
- Mergers and Acquisitions: Consolidation within the regional banking sector can create larger, more efficient institutions with greater scale and market share. Mergers and acquisitions can lead to cost synergies, revenue enhancements, and improved competitive positioning. KRE's performance could be positively impacted by strategic M&A activity within its constituent holdings. Monitoring M&A trends and their potential impact on the regional banking landscape is crucial for assessing this growth opportunity.
What Opportunities Does KRE Have?
- Rising interest rates can boost profitability of regional banks.
- Economic expansion can drive loan growth and asset quality improvements.
- Regulatory relief can reduce costs and free up capital for lending.
- Technological innovation can improve efficiency and customer service.
What Threats Does KRE Face?
- Economic downturns can negatively impact loan demand and asset quality.
- Increased competition from larger national banks.
- Regulatory changes can increase compliance costs.
- Cybersecurity threats and data breaches.
What Are KRE's Competitive Advantages?
- Established brand recognition as part of the State Street SPDR ETF family.
- Low cost structure compared to actively managed funds.
- Diversified exposure to the regional banking sector through its index-tracking approach.
What Does KRE Do?
The State Street SPDR S&P Regional Banking ETF (KRE) was created to mirror the investment results, before fees and expenses, of the S&P Regional Banks Select Industry Index. This index represents the regional banks segment of the broader S&P Total Market Index (TMI). The ETF provides a focused approach to investing in regional banks, distinguishing itself from broader financial sector ETFs. Membership in the Select Industry Indices is determined by the Global Industry Classification Standard (GICS), along with liquidity and market capitalization criteria, ensuring a relevant and representative portfolio. KRE employs a modified equal-weighted index methodology, which aims to mitigate concentration risk and provide more balanced exposure across large, mid, and small-cap stocks within the regional banking sector. This approach allows investors to strategically allocate capital to a specific segment of the financial industry, facilitating tactical positioning and granular control over their investment portfolios. By tracking the S&P Regional Banks Select Industry Index, KRE offers a transparent and rules-based approach to investing in U.S. regional banks, catering to investors seeking targeted exposure to this segment of the financial market.
What Products and Services Does KRE Offer?
- Tracks the performance of the S&P Regional Banks Select Industry Index.
- Provides exposure to the regional banking sector of the U.S. economy.
- Utilizes a modified equal-weighted approach to mitigate concentration risk.
- Offers diversification across large, mid, and small-cap regional bank stocks.
- Allows investors to take strategic or tactical positions in the regional banking sector.
- Provides a transparent and rules-based approach to investing in regional banks.
How Does KRE Make Money?
- KRE generates revenue through management fees charged to investors.
- The fund's performance is directly linked to the performance of the S&P Regional Banks Select Industry Index.
- KRE's modified equal-weighted approach aims to provide balanced exposure to the regional banking sector.
What Industry Does KRE Operate In?
The asset management industry is characterized by intense competition and evolving investor preferences. ETFs like KRE offer targeted exposure to specific sectors, catering to investors seeking granular control over their portfolios. The regional banking sector is influenced by factors such as interest rates, economic growth, and regulatory changes. KRE's performance is directly tied to the performance of the S&P Regional Banks Select Industry Index, making it sensitive to the overall health and outlook of the regional banking industry. Competitors include other financial sector ETFs and actively managed funds focused on regional banks.
Who Are KRE's Key Customers?
- Institutional investors seeking targeted exposure to the regional banking sector.
- Retail investors looking for a diversified investment in regional bank stocks.
- Financial advisors using KRE as part of their clients' portfolios.
State Street SPDR S&P Regional Banking ETF (KRE) Valuation Context
Relative to its peer group, KRE's quantitative score of 44/100 is roughly in line with the peer average of 47/100.
KRE Financials
Bull Case vs Bear Case
Bull Case
- Recent insider buying suggests confidence in the regional banking sector's recovery, indicating potential for growth.
- Community sentiment has shifted positively as investors see regional banks benefiting from rising interest rates, which could enhance profitability.
- Increased demand for regional banking exposure as investors seek alternatives to larger institutions, positioning KRE favorably.
- Recent commentary in trading forums highlights a belief that regional banks are undervalued compared to their larger counterparts.
Bear Case
- Concerns about potential economic slowdowns are causing skepticism about the stability of regional banks, leading to cautious sentiment.
- Negative media coverage surrounding banking sector vulnerabilities has dampened investor confidence, making some wary of KRE.
- Community discussions reflect fears of rising default rates among borrowers, which could impact regional bank earnings.
- Ongoing regulatory scrutiny on regional banks raises uncertainty, leading to bearish sentiment among some investors.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · March 2026
KRE Latest News
-
'European Central Bank Sources Says Policymakers Debating Doubling Banks' Minimum Reserve Requirement To 2% From 1%; Decision On Minimum Reserve Requirement Expected In The Autumn'
benzinga · Jun 30, 2026
-
Dow Jones Hit Record Highs As Oil Drops To $77: Stock Market Today
benzinga · Jun 16, 2026
-
Stock Market Today: Nasdaq 100 Slips As Broadcom Plunges, Bitcoin Hits 4-Month Lows
benzinga · Jun 4, 2026
-
S&P 500, Nasdaq 100 Drop From Records As Rate-Hike Bets Build, Oil Climbs: Stock Market Today
benzinga · Jun 3, 2026
KRE Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for KRE.
Price Targets
Wall Street price target analysis for KRE.
KRE MoonshotScore
What does this score mean?
The MoonshotScore rates KRE's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Latest News
'European Central Bank Sources Says Policymakers Debating Doubling Banks' Minimum Reserve Requirement To 2% From 1%; Decision On Minimum Reserve Requirement Expected In The Autumn'
Dow Jones Hit Record Highs As Oil Drops To $77: Stock Market Today
Stock Market Today: Nasdaq 100 Slips As Broadcom Plunges, Bitcoin Hits 4-Month Lows
S&P 500, Nasdaq 100 Drop From Records As Rate-Hike Bets Build, Oil Climbs: Stock Market Today
Latest State Street SPDR S&P Regional Banking ETF Analysis
KRE Financial Services Stock FAQ
What does State Street SPDR S&P Regional Banking ETF do?
The State Street SPDR S&P Regional Banking ETF (KRE) is designed to track the performance of the S&P Regional Banks Select Industry Index. This index represents the regional banking segment of the broader S&P Total Market Index (TMI). KRE provides investors with a targeted and liquid way to gain exposure to a diversified portfolio of regional bank stocks in the United States. The ETF utilizes a modified equal-weighted approach, aiming to mitigate concentration risk and provide balanced exposure across various market capitalizations within the regional banking sector. Its goal is to replicate the index's performance before fees and expenses.
What are the main risks for KRE?
The main risks for KRE are closely tied to the performance of the regional banking sector. Economic downturns can lead to increased loan defaults and reduced profitability for regional banks, negatively impacting KRE's value. Interest rate volatility can also pose a risk, as changes in interest rates can affect net interest margins and asset values. Regulatory changes and increased competition from larger banks and fintech companies could also create challenges for regional banks, potentially impacting KRE's performance. Investors should carefully consider these risks before investing in KRE.
How sensitive is KRE to interest rate changes?
KRE's performance is significantly influenced by interest rate changes due to the nature of the regional banking business model. Regional banks generate a substantial portion of their revenue from the net interest margin, which is the difference between the interest they earn on loans and the interest they pay on deposits. Rising interest rates can expand net interest margins, boosting profitability for regional banks and potentially increasing KRE's value. Conversely, falling interest rates can compress net interest margins, negatively impacting regional bank earnings and potentially decreasing KRE's value. Investors should carefully monitor interest rate trends and their potential impact on KRE's performance.
What is State Street SPDR S&P Regional Banking ETF's credit quality and risk management approach?
The State Street SPDR S&P Regional Banking ETF (KRE) does not directly manage credit risk in the same way a bank does, as it is an ETF that tracks an index of regional bank stocks. The credit quality and risk management approach are inherent within the individual regional banks that comprise the S&P Regional Banks Select Industry Index. Investors should analyze the individual holdings within KRE to assess the overall credit quality of the ETF. Factors to consider include the loan portfolio composition, provision levels for loan losses, and the risk management frameworks of the underlying regional banks. The ETF's performance is ultimately tied to the financial health and stability of its constituent holdings.
What are the key factors to evaluate for KRE?
State Street SPDR S&P Regional Banking ETF (KRE) holds an AI score of 44/100 (low). Not financial advice.
How frequently does KRE data refresh on this page?
KRE prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven KRE's recent stock price performance?
State Street SPDR S&P Regional Banking ETF (KRE) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Targeted exposure to the U.S. regional banking sector. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider KRE overvalued or undervalued right now?
Valuing State Street SPDR S&P Regional Banking ETF (KRE) requires multiple metrics. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- AI analysis pending for KRE, limiting comprehensive insights.
- Financial data based on available information as of 2026-03-17.
- Investment decisions should be based on thorough research and consultation with a financial advisor.