Through May 18, investors pulled $414 million from KRE this year, but that has not prevented the ETF from climbing 6.6% over the past 90 days to a new 52-week high today. An improving U.S. economy could foster increased borrowing and financing by businesses, large and small, across the U.S. while benign mortgage rates could also provide a lift to the mortgage lending operations of regional banks. KRE’s holdings have an average beta of +0.44 to moves in the US 10 Year Treasury. [Resurgent Regional Bank ETFs]
KBW Bank Index
Chart Courtesy: Neil Azous, Rareview Macro
Todd Shriber owns shares of XLF.