Additionally, regional banks, unlike large financial institutions, are not “too big to fail,” so these companies will be riskier in a financial meltdown.
Looking at KRE’s holdings, component stocks are equally weighted, which makes the ETF’s portfolio lean toward the smaller end of the regional banking sector. The fund’s market capitalization allocations include large-cap 7.6%, mid-cap 28.8%, small-cap 55.7% and micro-cap 7.9%.
Top holdings include PrivateBancorp 1.7%, East West Bancorp 1.7% and SVB Financial Group 1.7%.
SPDR S&P Regional Banking ETF
For more information on regional banks, visit our regional banks category.
Max Chen contributed to this article.