KRE: STATE STREET(R) SPDR(R) S&P REGIONAL BANKING(SM) ETF
ETF Education Report: STATE STREET(R) SPDR(R) S&P REGIONAL BANKING(SM) ETF (KRE)
What this ETF is trying to do
The KRE ETF is designed to track the performance of regional banking companies. Instead of buying just one bank, this fund holds many different banks at once. According to the data, it holds a total of 167 different holdings.
Top Holdings
Because the list provided is a partial list, these are only some of the largest companies in the fund:
• First Bancorp (FBP): 1.57%
• United Bankshares Inc (UBSI): 1.15%
• First Interstate Bancsystem Inc (FIBK): 1.14%
• East West Bancorp Inc (EWBC): 1.13%
• Eastern Bankshares Inc (EBC): 1.13%
• First Hawaiian Inc (FHB): 1.13%
• Fulton Financial Corp (FULT): 1.13%
• Hancock Whitney Corp (HWC): 1.13%
• Old National Bancorp (ONB): 1.13%
• Atlantic Union Bankshares Corp (AUB): 1.12%
*Please note: Holdings can change over time.*
What the numbers show
When looking at an ETF, it is important to understand two different types of returns: price return (how much the share price changed) and total return (the price change plus any cash paid out to investors).
• Year-to-Date (YTD): The price return is 8.12%, while the total return is 9.99%.
• One-Year: The price return is 9.33%, while the total return is 11.92%.
• Three-Year: The price return is 70.53%, while the total return is 84.86%.
To visualize the price change, the current price is $70.07. The estimated price from roughly one year ago was $64.09.
Income and distribution explanation
Some investors look for "distributions," which is cash paid out by the ETF. KRE has a distribution yield of approximately 2.30%. This means the cash paid out is 2.30% of the ETF's price. The trailing distributions were $1.61 per share. These payments usually happen quarterly, and in the last year, there were 4 payments.
NAV erosion explanation
"NAV erosion" is a term used to describe when the value of the underlying assets in a fund decreases significantly. It is important for income investors to watch this, as they want their original investment to stay stable while collecting cash. For KRE, the erosion-risk score is 100, and the label shows "No price erosion detected." There is no severe erosion-risk flag for this ETF.
Pros
• Stronger Total Returns: The total return is higher than the price return, meaning the cash distributions have added value to the overall performance.
• Positive Growth: The ETF has shown positive price returns over the one-year and three-year periods.
Cons
• Sector Concentration: This ETF focuses specifically on regional banks, which means it may behave differently than the broader stock market.
Beginner takeaway
When studying KRE, remember that price return and total return are different. The price return only tells you how the share price moved, while the total return includes the cash distributions. Also, while a distribution yield provides cash, it is not the same thing as total return.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | FIRST BANCORP | FBP | 1.57% |
| 2 | UNITED BANKSHARES INC | UBSI | 1.15% |
| 3 | FIRST INTERSTATE BANCSYSTEM INC | FIBK | 1.14% |
| 4 | EAST WEST BANCORP INC | EWBC | 1.13% |
| 5 | EASTERN BANKSHARES INC ORDINARY SHARES | EBC | 1.13% |
| 6 | FIRST HAWAIIAN INC | FHB | 1.13% |
| 7 | FULTON FINANCIAL CORP | FULT | 1.13% |
| 8 | HANCOCK WHITNEY CORP | HWC | 1.13% |
| 9 | OLD NATIONAL BANCORP | ONB | 1.13% |
| 10 | ATLANTIC UNION BANKSHARES CORP | AUB | 1.12% |