KRE’s holdings have an average beta of +0.44 to moves in the US 10 Year Treasury. In June, investors added over $1 billion to XLK, nearly $652 million to KRE and $237.3 million to KBE.

“Once the Fed finished rate increases, and the broader economy responded with higher GDP and loan growth, bank stocks significantly outperformed the S&P 500. Banks reflected these economic improvements by registering higher loan growth. Net interest income growth was also strong, due to wider NIMs,” notes S&P Capital IQ. [Good Tidings for Bank ETFs]

S&P Capital IQ has overweight ratings on KBE and KRE.


Todd Shriber owns shares of XLF.