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Opinions Stan Wong
SPDR S&P Regional Banking ETFKRECOMMENTAug 26, 2016
Stan WongStock price when the opinion was issued
As of Jun 16, 2026. Market Open.
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Shorting this, as it has such significant commercial real estate holdings.
David Burrows
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Premium contentSpeaking of which, KRE on the NYSE holds a basket of regional U.S. banks, including Comerica, SVB Financial and East West Bancorp. Some of the names in this basket will ring a bell for the wrong reasons. This ETF, as of the end of March, has lost 24%. If you think that the editors of Stockchase have gone temporarily insane, consider that sooner or later the regionals will bottom. Also factor that KRE charges only a 0.35% MER, pays a not-bad 2.39% dividend yield, and its beta is only 1.1, surprising considering all that has happened.
He's not surprised by the outflows from tech, which has been defensive this year. If Delta continues to slow and accomodative policy continues, investors will look at other places in the market for returns. KRE was below market weight. He trimmed his holding in June and jusT added to it. Cyclicals are up; financials have been flat this month, though up this past week. He likes regional banks; there's a return to loan demand.
Financials have been slower to recover, only gaining strength in September-October. Still have a long way to go. If you believe we had a generational low in long-term interest rates, and we're just entering a reflationary cycle, insurance companies benefit as assets go up in price. Higher rates are really good. Also interesting are KIE and KBE. Most interesting is IAI, making new highs. As a group, financials have underperformed since 2007, so they should now have a tailwind in this environment.
Cameron Hurst
SPDR Financial (XLF-N) or SPDR S&P Regional Banking? He likes XLF more because it has the larger cap more diversified names that are in capital markets, investment management, security management and wealth management. Interest rates will eventually move higher, but will stay low for long, and you want to have companies that are more diversified.