Additionally, some of KRE’s marquee components have firmed in the past month. Although the $2.3 billion KRE is an equal weight fund, some of the larger regional banks held by the ETF have perked up in recent weeks.
For example, shares of BB&T (NYSE: BBT) are up 2% in the past month while PNC Financial Services (NYSE: PNC) is up 1%. KeyCorp (NYSE: KEY) and SunTrust (NYSE: STI) are each up 1.6% since early May. PNC, KeyCorp and SunTrust are all top-10 holdings in KRE.
The wildcard for KRE and rival ETFs remains interest rates.
“The stocks in KRE have an average beta of +0.44 to moves in the US 10 Year Treasury, meaning that KRE’s holdings have increased 0.44% on average for every 1.00% move in the 10 Year. As the yield curve rises and the Fed gradually ends quantitative easing, KRE may continue to benefit,” State Street Vice President and Head of Research David Mazza to ETF Trends in April. [Don’t Forget This ETF as Rates Rise]
SPDR S&P Regional Banking ETF
