From The Motley Fool · Jake Lerch · · 1m 10s
KBE vs KRE: Banking ETFs Show Structural Drift
State Street SPDR S&P Bank ETF (KBE) outperforms regional banking ETF (KRE) by 17% over five years.
In brief
State Street SPDR S&P Bank ETF (KBE) outperforms regional banking ETF (KRE) by 17% over five years. KBE has delivered 33% total return vs KRE's 14% over five years, with KRE offering regional bank exposure for diversification. Originally reported by The Motley Fool.
KBE and KRE Fund Overview
State Street SPDR S&P Bank ETF (KBE) and State Street SPDR S&P Regional Banking ETF (KRE) both target financial services but differ in scope.
Performance Metrics
KBE shows 11.7% 1-year return vs KRE's 15.2% with identical 0.35% expense ratios and 2.3% dividend yields.
5-Year Performance Comparison
KBE generated 33% total return over five years vs KRE's 14% with KBE's 5.8% compound annual growth rate outperforming KRE's 2.7%.
Fund Composition
KRE focuses on 167 regional bank stocks while KBE holds 107 banks including major money-center institutions.
Key Holdings
KRE's top holdings include United Bankshares Inc (1.16%), East West Bancorp Inc (1.15%), and Old National Bancorp (1.15%).
Investor Considerations
KBE outperforms KRE historically but KRE offers diversification from major money-center banking stocks.
The one thing
KBE has delivered 33% total return vs KRE's 14% over five years, with KRE offering regional bank exposure for diversification.
