KRE ETF Explained: Returns, Expense Ratio, Holdings, and Alternative ETFs
The SPDR S&P Regional Banking ETF (KRE) tracks the U.S. regional banking sector on an equal-weighted basis. It is a sector-focused ETF that requires investors to weigh interest-rate and credit-cycle outlooks, quarterly dividends, and relatively elevated volatility, and it is also a useful reference when comparing related equities.
SubscribeWhat Is the SPDR S&P Regional Banking ETF?
It is a sector ETF that tracks the S&P Regional Banks Select Industry Index on an equal-weighted basis. It carries a larger weight in small- and mid-cap regional banks than in large diversified banks, making it sensitive to regional economic conditions.
It is suited for investors seeking concentrated exposure to the U.S. regional banking sector or those looking to make a sector bet tied to the interest-rate cycle.
It is a passively managed (index-tracking) ETF run by State Street.
How Does the SPDR S&P Regional Banking ETF Work?
| Item | Details |
|---|---|
| Tracked Index | S&P Regional Banks Select Industry Index |
| Management Style | Passive (equal-weighted index tracking) |
| Rebalancing Frequency | Quarterly |
| Dividend Schedule | Quarterly dividends |
| Total Expense Ratio | 0.35% |
The index constituents are held on an equal-weighted basis, a design that prevents overconcentration in a few large names and broadly reflects the performance of small- and mid-cap regional banks. Rebalancing is performed quarterly according to the index committee's rules.
- Equal-weighting approach reduces concentration in any single large-cap name
- Pure exposure focused on the regional banking sector
SPDR S&P Regional Banking ETF Size and Cost (AUM · Expense Ratio)
Assets under management (AUM) stand at $4.3B, and the total expense ratio is 0.35% per year.
Unlike broad financial-sector ETFs such as XLF or IYG, it offers pure exposure concentrated in regional banks, and it differs from bank-focused ETFs such as KBWB or KBE in how holdings are constructed.
Performance and Fund Flows of the SPDR S&P Regional Banking ETF
The regional banking sector tends to exhibit relatively high share-price volatility in line with the interest-rate cycle and shifts in the credit environment, and it has continued to react sensitively to changing interest-rate expectations.
Investor sentiment toward the regional banking sector tends to drive sizable fund flows in response to macro news such as the credit cycle and concerns over deposit outflows, and shifts in risk appetite across the sector influence fund flows.
Strengths and Weaknesses of the SPDR S&P Regional Banking ETF
Concentrated exposure to the regional banking sector and equal-weighted diversification are its strengths, while elevated volatility tied to the credit cycle is its main weakness.
Key Strengths
Points to Watch
Alternative ETFs and Related Products for the SPDR S&P Regional Banking ETF
Among the comparable ETFs shown in the table, investors can consider XLF as a large-cap ETF that broadly covers the financial sector, KBWB and KBE as bank-focused ETFs spanning large and regional banks, IYG across the broader financial services industry, and IAT, which is concentrated on regional banks. Investors seeking leveraged exposure to the regional banking sector may also look at DPST, a 3x leveraged product, but should approach it cautiously given significantly amplified volatility.
Investor Checklist for the SPDR S&P Regional Banking ETF
Points to review before investing in KRE. The regional banking sector's characteristic volatility and credit-cycle sensitivity should be confirmed in advance, and the impact of changes in the interest-rate environment should also be examined.
| Checkpoint | What to Confirm | Current Status |
|---|---|---|
| 💵 Expense Ratio | Impact of cumulative costs over a long-term holding period | Annual fee applied |
| 🏦 Credit Cycle | Trends in regional economies and loan quality | Caution during periods of heightened volatility |
| 📊 Holdings Diversification | Whether the equal-weighted structure avoids large-cap concentration | Even diversification maintained |
| 💱 Interest-Rate Sensitivity | Sector impact from changes in interest-rate expectations | Confirmation needed |
The regional banking sector is sensitive to the credit cycle and shifts in the interest-rate environment, which can amplify volatility relative to other financial-sector ETFs. During periods marked by concerns over deposit outflows or a credit crunch, short-term drawdowns can be sharp.
For investors seeking concentrated exposure to the U.S. regional banking sector, it is a standard option, while those preferring broad financial-sector exposure can consider XLF, and those wanting exposure to the banking sector overall can review alternatives such as KBE and KBWB.
1-Year Price Performance
Dividend & Yield
52-Week Price RangeStrengths and Weaknesses of the SPDR S&P Regional Banking ETF
Concentrated exposure to the regional banking sector and equal-weighted diversification are its strengths, while elevated volatility tied to the credit cycle is its main weakness.
Key Strengths
Points to Watch
Alternative ETFs and Related Products for the SPDR S&P Regional Banking ETF
Among the comparable ETFs shown in the table, investors can consider XLF as a large-cap ETF that broadly covers the financial sector, KBWB and KBE as bank-focused ETFs spanning large and regional banks, IYG across the broader financial services industry, and IAT, which is concentrated on regional banks. Investors seeking leveraged exposure to the regional banking sector may also look at DPST, a 3x leveraged product, but should approach it cautiously given significantly amplified volatility.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 XLF | State Street Financial Select Sector SPDR ETF | $57.25 | +0.7% | $54.4B | 0.08% | 1.41% | +6.0% |
 KBWB | Invesco KBW Bank ETF | $96.85 | +0.6% | $6.8B | 0.35% | 1.92% | +24.1% |
 IYG | iShares U.S. Financial Services ETF | $96.63 | +0.7% | $2.2B | 0.38% | 1.02% | +7.3% |
 KBE | State Street SPDR S&P Bank ETF | $68.04 | +0.1% | $1.6B | 0.35% | 2.16% | +11.2% |
 KIE | State Street SPDR S&P Insurance ETF | $62.35 | +0.2% | $669.4M | 0.35% | 1.57% | +5.1% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
 MYMK | State Street My2031 Municipal Bond ETF | 0.02% | $24.49 | +0.1% | $0.0M | - | 2.51% |
 FLG | Flagstar Bank NA | 0.02% | $13.18 | -0.7% | $5.5B | 652.5 | 0.3% |
 ZION | Zions Bancorporation N.A | 0.02% | $68.75 | +0.7% | $10.0B | 8.8 | 2.66% |
 ASB | Associated Banc-Corp | 0.02% | $30.04 | -1.0% | $5.7B | 10.5 | 3.22% |
 TCBI | Texas Capital Bancshares Inc | 0.02% | $99.09 | +0.2% | $4.3B | 12.9 | 0.61% |
 OZK | Bank OZK | 0.02% | $49.09 | +0.7% | $5.6B | 8.1 | 3.87% |
 BPOP | Popular Inc | 0.02% | $163.71 | -0.1% | $10.4B | 11.1 | 1.93% |
 VLY | Valley National Bancorp | 0.01% | $13.80 | -0.4% | $7.6B | 11.7 | 3.19% |
 CFR | Cullen Frost Bankers Inc | 0.01% | $162.92 | +0.2% | $10.1B | 15.4 | 2.5% |
 FNB | F.N.B. Corp | 0.01% | $18.31 | +0.3% | $6.5B | 10.9 | 2.79% |
Investor Checklist for the SPDR S&P Regional Banking ETF
Points to review before investing in KRE. The regional banking sector's characteristic volatility and credit-cycle sensitivity should be confirmed in advance, and the impact of changes in the interest-rate environment should also be examined.
| Checkpoint | What to Confirm | Current Status |
|---|---|---|
| 💵 Expense Ratio | Impact of cumulative costs over a long-term holding period | Annual fee applied |
| 🏦 Credit Cycle | Trends in regional economies and loan quality | Caution during periods of heightened volatility |
| 📊 Holdings Diversification | Whether the equal-weighted structure avoids large-cap concentration | Even diversification maintained |
| 💱 Interest-Rate Sensitivity | Sector impact from changes in interest-rate expectations | Confirmation needed |
The regional banking sector is sensitive to the credit cycle and shifts in the interest-rate environment, which can amplify volatility relative to other financial-sector ETFs. During periods marked by concerns over deposit outflows or a credit crunch, short-term drawdowns can be sharp.
For investors seeking concentrated exposure to the U.S. regional banking sector, it is a standard option, while those preferring broad financial-sector exposure can consider XLF, and those wanting exposure to the banking sector overall can review alternatives such as KBE and KBWB.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of July 2, 2026.
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