LIVE
KRE
SPDR S&P Regional Banking ETF · ETF / Regional Banking
$71.72
+6.16% this month
VERSUS
⟷
COMPARE
XLF
Financial Select Sector SPDR Fund · ETF / Broad Financial Sector
$53.57
+4.83% this month
Scoreboard verdict
Across expense ratio, momentum, yield, fund size, risk
KRE
3
XLF
2
Comparison scoreboard
KRE LEADS 3/5Exp. Ratio
KRE 0.35%
XLF ✓0.08%
1Y Return
KRE ✓+30.09%
XLF +8.32%
Div. Yield
KRE ✓2.26%
XLF 1.54%
AUM
KRE $3.8B
XLF ✓$49.42B
Beta
KRE ✓0.88
XLF 0.88
Metrics last refreshed: 6/20/2026
Quick take
KRE vs XLF Stock Comparison: AI Score, Valuation, Performance and Upside
KRE and XLF both provide financial sector exposure but with very different compositions. KRE is a pure-play on 140+ US regional banks equally weighted — maximum regional bank cycle leverage. XLF is a diversified financial sector fund including mega-banks, insurance, payment networks, and asset managers. KRE offers concentrated regional bank exposure for targeted bets on bank sector; XLF offers broad financial sector diversification. KRE has higher volatility and more regional bank-specific risk; XLF has more stability from diversification.
KRE vs XLF — SPDR S&P Regional Banking ETF (140+ US regional banks equally weighted, providing maximum exposure to regional bank NIM environment, CRE credit quality, and deposit stability cycles) versus Financial Select Sector SPDR (broad S&P 500 financial sector with JPMorgan, Berkshire, Visa, Mastercard dominance providing diversified financial sector exposure).
Live analysis · updated 6/20/2026
KRE holds the edge across 3 of 5 key metrics in this comparison. KRE has delivered stronger 1-year price return (+30.09% vs +8.32% for XLF).
Normalized 1Y performance
KRE
XLF
Recent returns
KRE
XLF
Who should consider this stock?
KRE may suit investors who:
- →want concentrated regional bank exposure for a specific bet on the US regional bank cycle — net interest margin expansion, steepening yield curve, or CRE credit normalization
- →believe regional bank valuations are compelling (historically low price-to-book) and want undiluted exposure without mega-bank or payment network contamination
- →are comfortable with higher volatility and 2023-style deposit flight risk in exchange for maximum regional bank cycle upside when conditions improve
- →use KRE as a tactical allocation rather than core holding — positioning for specific financial sector macro themes
XLF may suit investors who:
- →want diversified financial sector exposure including mega-banks, insurance, payment networks, and asset managers through a single 0.09% ETF
- →prefer mega-bank stability (JPMorgan, BofA, Wells Fargo) without the concentrated regional bank CRE exposure and deposit flight risk KRE carries
- →use XLF as a financial sector allocation within a sector ETF portfolio alongside technology (XLK), healthcare (XLV), and other sectors
- →value Visa/Mastercard secular payment growth within their financial sector allocation — XLF's payment network exposure provides non-bank financial growth
Performance & AI score
| Metric | KRE | XLF |
|---|---|---|
| ETF score | 57.0 | 61.0 |
| Latest close | $71.72 | $53.57 |
| 1M return | +6.16% | +4.83% |
| 6M return | +7.87% | -1.09% |
| 1Y return | +30.09% | +8.32% |
$10,000 invested — hypothetical growth (dividends reinvested)
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | KRE | XLF |
|---|---|---|
| 1Y ago | $13.34K (+33.4%) started 2025-06-18 | $11K (+10.0%) started 2025-06-18 |
| 5Y ago | $14.92K (+49.2%) started 2021-06-18 | $18.16K (+81.6%) started 2021-06-18 |
| 10Y ago | $30.77K (+207.7%) started 2016-06-20 | $42.44K (+324.4%) started 2016-06-20 |
Hypothetical — past performance does not guarantee future results.
Fund characteristics
| Metric | KRE | XLF |
|---|---|---|
| Expense ratio | 0.35% | 0.08% |
| Total assets (AUM) | $3.8B | $49.42B |
| Dividend yield | 2.26% | 1.54% |
| Trailing P/E | 12.81 | 16.90 |
| Beta | 0.88 | 0.88 |
| 52-week change | 30.09% | 8.32% |
Risk & fund metrics
| Metric | KRE | XLF |
|---|---|---|
| 1Y return | +30.09% | +8.32% |
| 6M return | +7.87% | -1.09% |
| 1M return | +6.16% | +4.83% |
| 1Y Sharpe ratio | 1.06 | 0.31 |
| Beta | 0.88 | 0.88 |
| Dividend yield | 2.26% | 1.54% |
| 5Y CAGR | +5.24% | +10.66% |
Drawdown & downside risk
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
1Y risk snapshot
KRE max drawdown14.95%
XLF max drawdown14.79%
KRE max wkly drop7.64%
XLF max wkly drop4.81%
5Y risk snapshot
KRE max drawdown52.69%
XLF max drawdown25.81%
KRE max wkly drop25.83%
XLF max wkly drop12.19%
10Y risk snapshot
KRE max drawdown55.03%
XLF max drawdown42.86%
KRE max wkly drop26.25%
XLF max wkly drop22.99%
Performance metrics by period
| Period | Metric | KRE | XLF |
|---|---|---|---|
| 1Y | Growth | +30.09% | +8.32% |
| CAGR | +30.11% | +8.32% | |
| Sharpe ratio | 1.06 | 0.31 | |
| Max drawdown | 14.95% | 14.79% | |
| Max daily drop | 6.20% | 3.35% | |
| Max wkly drop | 7.64% | 4.81% | |
| 5Y | Growth | +29.09% | +65.90% |
| CAGR | +5.24% | +10.66% | |
| Sharpe ratio | 0.17 | 0.40 | |
| Max drawdown | 52.69% | 25.81% | |
| Max daily drop | 12.31% | 7.32% | |
| Max wkly drop | 25.83% | 12.19% | |
| 10Y | Growth | +133.46% | +247.74% |
| CAGR | +8.85% | +13.28% | |
| Sharpe ratio | 0.29 | 0.47 | |
| Max drawdown | 55.03% | 42.86% | |
| Max daily drop | 15.49% | 13.71% | |
| Max wkly drop | 26.25% | 22.99% |
Fund overview
| Category | KRE | XLF |
|---|---|---|
| Fund name | State Street SPDR S&P Regional Banking ETF | State Street Financial Select Sector SPDR ETF |
| Type | ETF | ETF |
| Expense ratio | 0.35% | 0.08% |
| Total assets (AUM) | $3.8B | $49.42B |
| Dividend yield | 2.26% | 1.54% |
KRE strengths
- →Equal weighting gives true regional bank exposure: KRE's equal weight prevents JPMorgan-sized companies from dominating — provides genuine small/mid regional bank factor exposure
- →Net interest margin leverage: regional banks earn more when the yield curve steepens — KRE benefits significantly from favorable rate environments
- →Economically sensitive value play: regional banks are correlated with economic expansion — loan growth, business formation, and housing activity all drive regional bank revenue
XLF strengths
- →Financial sector diversification beyond regional banks: XLF includes Visa, Mastercard, Berkshire, insurance companies (Progressive, Chubb, MetLife) and asset managers (BlackRock) — broader than pure bank exposure
- →Mega-bank quality and stability: JPMorgan Chase, Bank of America, Wells Fargo in XLF have more diversified revenue than regional banks and survived 2023 regional bank stress without crisis
- →Payment network exposure (Visa/Mastercard): XLF includes payment network duopoly in the financial sector allocation — secular growth businesses with different drivers than traditional banking
Risks to watch — KRE
- →Commercial real estate (CRE) exposure: regional banks hold large CRE loan portfolios — office building value declines post-COVID create potential loan losses that are still working through the system
- →Deposit flight risk during banking stress: 2023's Silicon Valley Bank collapse and regional bank deposit flight showed regional banks' vulnerability to confidence crises — KRE fell 30%+ in early 2023
- →Regulatory capital requirements increasing: post-SVB, regulators are requiring banks to hold more capital — constraining lending capacity and returns on equity
Risks to watch — XLF
- →JPMorgan dominance: JPMorgan and other mega-banks represent 40%+ of XLF — investors seeking regional bank or insurance exposure specifically get a diluted version through XLF
- →Lower sensitivity to regional bank opportunities: when regional banks are particularly cheap vs mega-banks or have catalysts (steepening yield curve), XLF's diversification dilutes the regional bank thesis vs KRE
- →Large cap-weight concentration in top 5 holdings: XLF's top 5 holdings represent 40%+ of the ETF — less diversified than the 140+ equal-weighted regional bank portfolio of KRE
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