Is KRE a good buy right now?

Whether SPDR S&P Regional Banking ETF (KRE) is a good buy right now depends on your outlook for the regional banking industry and your risk tolerance.

How can I buy SPDR ETFs?

SPDR ETFs can be purchased by searching their tickers on your brokerage platform and placing an order.

What banks are in the KRE index?

KRE held 148 banks represented by the S&P Regional Banks Select Industry index in May 2026.

Which regional bank ETF is best?

The best regional bank ETF for your portfolio depends on your preference. KRE is ideal for those who want equal-weight exposure and more small-cap stocks, while the iShares U.S. Regional Banks ETF (NYSEMKT:IAT) is market-cap weighted with a focus on mid-caps.

What is the price forecast for KRE?

According to TipRanks, the SPDR S&P Regional Banking ETF (KRE) currently has an analyst rating of "Moderate Buy" and an average 12-month price target of $77.39.

What sector is KRE in?

The companies in KRE fall into the "Financial Services" Global Industry Classification Standard (GICS) sector.

How to Buy SPDR S&P Regional Banking ETF (KRE)

How to Invest in SPDR S&P Regional Banking ETF (KRE)

By Tony Dong – Updated May 2, 2026 at 7:41 PM EST | Fact-checked by Frank Bass

Key Points

KRE ETF offers a diversified way to invest in regional banks without picking individual stocks.
The ETF balances risk by equally weighting small- to mid-sized bank stocks, raising volatility.
KRE charges a 0.35% expense ratio and has a 2.18% 30-day SEC yield, providing modest returns.

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KRE SPDR Series Trust - State Street SPDR S&P Regional Banking ETF

$69.71-$0.05 (-0.07%)

NYSEMKT · As of 12:48 PM ET 10/16/26

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What is KRE?

SPDR S&P Regional Banking ETF (KRE) is a passive ETF that seeks to replicate the performance and constituents of a benchmark, specifically the S&P Regional Banks Select Industry index.

This index draws from the broader S&P Total Market Index (TMI) and isolates stocks identified as part of the regional banking industry.

One unique aspect of this SPDR ETF is that it weights all of its stocks equally, meaning that regardless of a bank's size, it receives the same weight during each rebalance.

As a result, this regional banking ETF is considered one of the riskier sector-specific funds. It focuses on a narrower industry -- regional banks -- and gives equal weight to more volatile small-cap and mid-cap stocks, increasing the fund's overall risk exposure.

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Exchange-Traded Fund (ETF)

An exchange-traded fund, or ETF, allows investors to buy many stocks or bonds at once.

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How to buy KRE

Buying shares of SPDR S&P Regional Banking ETF (KRE) is similar to investing in most ETFs. Here's a step-by-step guide to get started:

Open your brokerage account: Log in to your brokerage account where you handle your investments. If you don't have one yet, take a look at our favorite brokers and trading platforms to find the right one.
Search for the ETF: Enter the ticker "KRE" into the search bar to bring up the ETF's trading page.
Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this ETF.
Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
Submit your order: Confirm the details and submit your buy order.
Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.

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Holdings of KRE

SPDR S&P Regional Banking ETF's portfolio typically consists of around 140 to 150 equally weighted holdings. As mentioned earlier, the top holdings in this ETF tend to be regional banks that have outperformed between rebalances.

Here are the current top 10 holdings with their weights as of July 2, 2025:

East West Bancorp (EWBC +0.10%) – 1.63%
Western Alliance Bancorp (WAL +0.70%) – 1.60%
Popular (BPOP +0.70%) – 1.59%
Pinnacle Financial Partners (PNFP +0.19%)
Zions Bancorp (ZION +0.32%) – 1.58%
Valley National Bancorp (VLY -0.47%) – 1.55%
Associated Bancorp (ASBA -0.06%) – 1.55%
UMB Financial (UMBF -0.56%) – 1.54%
Flagstar Bank (NYSE:FBC) – 1.54%
Truist Financial (TFC +1.06%) – 1.54%

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Advantages and disadvantages of investing in KRE

One of the biggest advantages of investing in SPDR S&P Regional Banking ETF (KRE) is that it spreads your risk across a wide basket of U.S. regional banks. While any individual bank might fail -- as seen during the 2023 banking turmoil -- the odds of the entire basket going under are much lower.

The ETF also provides targeted exposure at a relatively low 0.35% expense ratio, especially given its narrow focus. Investors benefit from an above-average 30-day SEC yield of 2.18% and solid trading liquidity.

However, investing in KRE comes with higher-than-average volatility. Regional banks tend to be smaller, making them more sensitive to interest rate changes and local economic conditions. The sector is also particularly vulnerable during banking crises, when sharp, prolonged drawdowns can occur with little warning.

Another drawback is KRE’s limited exposure to larger, more diversified national banks, which may be better positioned to weather economic shocks or benefit from broader macro trends.

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Should you invest in KRE?

KRE could be a suitable investment if:

You're bullish on the regional banking sector.
You want more exposure to small-cap stocks through equal weighting.
You're OK with a concentration in a specific industry.
You understand the high volatility of regional banks.
You're comfortable with the possibility of extended and deep unrealized losses.
You prefer to stay diversified across the industry rather than picking individual regional banks.

If these align with your investment strategy, the SPDR S&P Regional Banking ETF may be a good fit for your portfolio. If not, it might not be the best ETF for you.

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Does KRE pay a dividend?

Many regional banks offer generous dividend yields, and as a result, this SPDR ETF collects these dividends and pays them out to shareholders on a quarterly basis.

As of May 1, the SPDR S&P Regional Banking ETF had a 30-day SEC yield of 2.18%, though this yield can fluctuate with changes in the ETF's price and the underlying bank dividends.

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30-Day Yield

A standard calculation developed by the Securities and Exchange Commission (SEC) to make it easier to compare bond funds.

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What is KRE's expense ratio?

The expense ratio is the annual fee charged by an ETF to cover its management and operational costs. It's calculated as a percentage of your total investment and deducted from the fund's returns over time, so while you don't pay it directly, it affects your overall returns.

KRE's expense ratio is 0.35%, which means you'll pay about $35 per $10,000 invested annually. This fee is typical for a sector or industry-specific ETF like this SPDR ETF.

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Expense Ratio

A percentage of mutual fund or ETF assets deducted annually to cover management, operational, and administrative costs.

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Historical performance of KRE

Here's how SPDR S&P Regional Banking ETF has performed historically based on total returns (i.e., with dividends reinvested):

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Data source: State Street. Total Annualized (Before Tax) Returns as of May 1, 2026.
ETF	1-Year	3-Year	5-Year	10-Year
KRE (Market)	17.47%	17.50%	2.39%	8.29%
KRE (NAV)	17.45%	17.47%	2.40%	8.29%

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The bottom line

SPDR S&P Regional Banking ETF (KRE) is best used as a specialized satellite holding in your portfolio, complementing a more broadly diversified core of long-term, broad-market ETFs. It's suitable for expressing a bullish view on the regional banking industry or can be sold short to hedge against another crisis like the one in 2023.

While it pays a decent yield, most dividend-focused investors may prefer a more diversified option for consistent income generation over a sector-specific ETF like KRE.

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Investing in SPDR S&P Regional Banking ETF (KRE) FAQ

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Tony Dong has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Truist Financial. The Motley Fool recommends Western Alliance Bancorporation. The Motley Fool has a disclosure policy.

How to Invest in SPDR S&P Regional Banking ETF (KRE)

Key Points

KRE - SPDR Series Trust - State Street SPDR S&P Regional Banking ETF

Key data points

Top holdings