What is the main difference between KBE and KRE?

KBE is a broader bank sector ETF covering diverse banks, while KRE focuses specifically on regional banks. This means KRE concentrates on smaller and mid-sized banks in local markets, whereas KBE includes wider banking entities, potentially with different risk and growth profiles.

Are KBE and KRE actively managed or passive index funds?

No index tracked is shown for KBE or KRE in the fund data, so their methodology cannot be verified from this source. Without a disclosed index, it is unclear whether they follow a passive or active approach, highlighting a transparency limitation for investors.

Do both funds have the same expense ratio, and what does that mean?

Yes, both KBE and KRE have a 0.35% expense ratio, making fees equal on a percentage basis. Over time, this identical cost does not differentiate them financially, so investors must look elsewhere—such as holdings, size, and concentration—for comparison.

How do the dividend yields of KBE and KRE compare?

Both KBE and KRE offer a 2.23% dividend yield according to the fund data. This means each provides modest income from dividends. However, yields can vary depending on future distributions and underlying company payouts, so investors should review updates regularly.

What is the significance of KRE’s regional bank focus?

KRE’s emphasis on regional banks makes it more targeted but also more concentrated. Investors seeking specific exposure to local banking markets may find this appealing, but if regional credit conditions weaken, KRE could be more vulnerable than the broader KBE.

How do net assets influence trading for KBE and KRE?

KRE has $3.8 billion in net assets compared to KBE’s $1.6 billion, suggesting KRE may offer better market depth. Larger assets can make trading easier and sometimes improve bid–ask spreads, although KBE’s smaller size does not necessarily mean poor liquidity.

What are the benefits of KBE’s broader bank exposure?

KBE includes Equitable Holdings and many other banks across different markets, which may reduce exposure to regional stress. Its wide selection means a problem in one geography may have less impact overall, supporting diversification within the banking sector.

How similar are the top holdings of KBE and KRE?

The funds share only two top-10 holdings: FIBK and HWC. This indicates their portfolios differ significantly, reflecting KBE’s broader selection versus KRE’s regional concentration. Comparing holdings is a key step in understanding how these funds diverge.

Which sectors dominate each fund, and is sector data available?

Neither KBE nor KRE currently discloses sector weights in the available data. This limitation means investors cannot confirm how heavily each ETF is exposed to banking or other subsectors, making holdings review essential when assessing these funds.

Which fund has a longer track record, KBE or KRE?

KBE launched in November 2005, a year before KRE, which began in June 2006. While both have over a decade of history, KBE’s slightly longer record may appeal to investors prioritising fund longevity, although this alone does not guarantee future performance.

What are ETFs and how do KBE and KRE fit into this category?

ETFs, or exchange-traded funds, are basket securities traded on stock exchanges. KBE and KRE are sector ETFs targeting the financial and banking industries, offering investors a way to gain diversified exposure without buying individual bank stocks.

How do KBE and KRE compare in terms of fund launch dates?

KBE launched earlier in November 2005, while KRE followed in June 2006. Both have established histories, but KBE’s extra year may make it slightly more mature in terms of market presence and investor familiarity.

KBE vs KRE

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

SPDR S&P Bank ETF (KBE) and S&P Regional Banking SPDR ETF (KRE) are both financial sector funds tracking banking markets. Compare their identical 0.35% expense ratios, dividend yields, net assets, and top holdings. KBE includes Equitable Holdings, while KRE focuses exclusively on regional banks like Fifth Third and Horizon Bancorp. Review how each fund tracks its specific index segment to understand portfolio construction. Educational content, not financial advice.

SPDR S&P Bank ETF (KBE) and S&P Regional Banking SPDR ETF (KRE) are both financial sector funds tracking banking markets. Compare their identical 0.35% expense ratios, dividend yields, net assets, and...

Fund Snapshot

Key Fund Metrics

KBE

Metric

KRE

0.35%

Expense Ratio

0.35%

2.23%

Dividend Yield

2.23%

$1.56B

Net Assets

$3.78B

109

Holdings

169

Nov 8, 2005

Inception Date

Jun 19, 2006

–

Index Tracked

–

Financial

Fund Category

Financial

Both funds charge the same annual fee.

Shared Top Holdings

Holding	KBE	KRE
FIBKFirst Interstate BancSystem, Inc.	0.96%	1.13%
HWCHancock Whitney Corporation	0.95%	1.12%

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Compare KBE and XLF ETFs. Review expense ratios of 0.35% and 0.08%, yields of 2.23% and 1.49%, and holdings. Educational data, not financial advice.

Investment Analysis

KBE

Pros

KBE’s long history since its 2005 launch provides a well-established track record in the sector
Its broad selection of banks across many markets may help reduce exposure to any one regional issue
Dividends yield 2.23% per fund data, offering modest cash income within the financial sector

Considerations

0.35% expense ratio is high compared with many large core equity funds
$1.6 billion net assets are smaller than some sector peers, which may limit market depth
Fund data reports no index tracked, making it difficult to verify methodology and transparency

KRE

Pros

Its larger net assets of $3.8 billion may support more active trading
Focused exposure to regional banks provides a targeted play for investors
Since 2006, it has a long track record as a specialist financial sector vehicle

Considerations

0.35% expense ratio is higher than many broad, core equity exchange-traded funds
Its regional bank emphasis introduces concentration risk if regional credit conditions worsen
No tracked index in the fund data limits understanding of holdings methodology

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