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Opinions Jim Huang
SPDR S&P Regional Banking ETFKREBUYJul 06, 2017
Jim HuangStock 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
With the stress tests completed and the ability to return capital to shareholders, would you buy specific regional banks or this ETF instead? With the stress tests completed and a lot more freedom in returning capital to shareholders, these banks’ health has everything to do with the US economy. Slow, but steady, continuing to do well, and the housing market which is only halfway through recovery. Overall, they are doing well and he would consider owning all of the names through this ETF.