State Street SPDR S&P Regional Banking ETF

KRE

Market cap $4.1B

Looking for broad exposure to the Financials - Regional Banks segment of the equity market? You should consider the State Street SPDR S&P Regional Banking ETF (KRE), a passively managed exchange traded fund launched on June 19, 2006.

A smart beta exchange traded fund, the State Street SPDR S&P Regional Banking ETF (KRE) debuted on 06/19/2006, and offers broad exposure to the Financials ETFs category of the market.

For weeks, the Iran war was an inflation story. Oil above $110 meant $4 gasoline, higher transport costs, higher everything — a sustained supply-side shock that forced the Federal Reserve to stay on hold, and markets to price out every cut that had been penciled in before the start of Operation Fury.

Regional banks are about 13% off of their high. The Iran conflict is creating chaos for the financial sector outlook, but a resolution could trigger a relief rally for the sector.

The State Street SPDR S&P Regional Banking ETF (KRE) is rated Hold due to near-term volatility and macroeconomic headwinds impacting regional banks. KRE trades at deep value with an average PE of 10.77 and price-to-book of 1.1, but faces heightened risk and underperformance versus broader financials over longer periods. CRE exposure remains a significant risk, with many KRE constituents having over 50% of loan portfolios in commercial real estate, especially problematic in office and retail segments.

Large lenders, sitting on some $175 billion in excess capital, plan to fund more loans, chase deals and increase buybacks.

Amid ongoing volatility in the crude oil trade, Mish Schneider is looking at technical levels in several key ETF products. She's closely monitoring the XRT Retail ETF with her eyes on a critical level at 81.50.

Right now, a lot of investors are trying to pick “the perfect stock” in the middle of one of the most chaotic market environments we've seen in years.

State Street SPDR S&P Regional Banking ETF is a diversified portfolio of smaller banks. Regional banks can get into trouble quickly if they make poor loan decisions.

Looking for broad exposure to the Financials - Regional Banks segment of the equity market? You should consider the State Street SPDR S&P Regional Banking ETF (KRE), a passively managed exchange traded fund launched on June 19, 2006.