KRE vs. KBE

Last updated Jun 24, 2026

KRE (SPDR S&P Regional Banking ETF) and KBE (SPDR S&P Bank ETF) are both Financials Equities funds from State Street - KRE tracks the S&P Regional Banks Select Industry Index while KBE tracks the S&P Banks Select Industry Index. Both are passively managed. Over the past 10 years, KRE returned 9.59%/yr vs 11.09%/yr for KBE. Their correlation of 0.95 suggests significant overlap in exposure. Both charge a 0.35% expense ratio.

Performance

KRE vs. KBE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SPDR S&P Regional Banking ETF (KRE) and SPDR S&P Bank ETF (KBE). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, KRE achieves a 14.14% return, which is significantly higher than KBE's 11.37% return. Over the past 10 years, KRE has underperformed KBE with an annualized return of 9.59%, while KBE has yielded a comparatively higher 11.09% annualized return.

KRE

• 1D: 1.57%
• 1M: 6.02%
• YTD: 14.14%
• 6M: 10.96%
• 1Y: 29.42%
• 3Y*: 26.19%
• 5Y*: 4.63%
• 10Y*: 9.59%

KBE

• 1D: 1.33%
• 1M: 5.76%
• YTD: 11.37%
• 6M: 8.58%
• 1Y: 26.10%
• 3Y*: 27.71%
• 5Y*: 8.00%
• 10Y*: 11.09%

*Multi-year figures are annualized to reflect compound growth (CAGR)

KRE vs. KBE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
KRE SPDR S&P Regional Banking ETF	14.14%	10.21%	18.58%	-7.61%	-15.08%	39.29%	-7.43%	27.44%	-18.81%	7.49%
KBE SPDR S&P Bank ETF	11.37%	12.36%	23.78%	5.30%	-14.83%	33.46%	-8.75%	29.78%	-19.65%	10.49%

Correlation

The correlation between KRE and KBE is 0.99 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.99
Correlation (3Y) Calculated over the trailing 3-year period	0.99
Correlation (5Y) Calculated over the trailing 5-year period	0.99
Correlation (10Y) Calculated over the trailing 10-year period	0.99
Correlation (All Time) Calculated using the full available price history since Jun 22, 2006	0.95

The correlation between KRE and KBE has been stable across timeframes, ranging from 0.95 to 0.99 - a consistent structural relationship.

KRE vs. KBE - Sectors Allocation Comparison

Sectors	KRE	KBE
Financial Services	100.0%	100.0%
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	-
Industrials	-	-
Real Estate	-	-
Technology	-	-
Utilities	-	-

Return for Risk

KRE vs. KBE — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

KRE

KRE Risk / Return Rank: 37
KRE Sharpe Ratio Rank: 37
KRE Sortino Ratio Rank: 36
KRE Omega Ratio Rank: 38
KRE Calmar Ratio Rank: 41
KRE Martin Ratio Rank: 35

KBE

KBE Risk / Return Rank: 35
KBE Sharpe Ratio Rank: 36
KBE Sortino Ratio Rank: 34
KBE Omega Ratio Rank: 36
KBE Calmar Ratio Rank: 37
KBE Martin Ratio Rank: 33

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

KRE vs. KBE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR S&P Regional Banking ETF (KRE) and SPDR S&P Bank ETF (KBE). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	KRE	KBE	Difference
Sharpe ratio: Return per unit of total volatility	1.27	1.22	+0.05
Sortino ratio: Return per unit of downside risk	1.81	1.74	+0.07
Omega ratio: Gain probability vs. loss probability	1.24	1.23	+0.01
Calmar ratio: Return relative to maximum drawdown	1.98	1.79	+0.18
Martin ratio: Return relative to average drawdown	5.13	4.71	+0.42

KRE vs. KBE - Sharpe Ratio Comparison

The current KRE Sharpe Ratio is 1.27, which is comparable to the KBE Sharpe Ratio of 1.22. The chart below compares the historical Sharpe Ratios of KRE and KBE, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

KRE vs. KBE - Drawdown Comparison

The maximum KRE drawdown since its inception was -68.54%, smaller than the maximum KBE drawdown of -83.15%. Use the drawdown chart below to compare losses from any high point for KRE and KBE.

Drawdown Indicators

	KRE	KBE	Difference
Max Drawdown Largest peak-to-trough decline	-68.54%	-83.15%	+14.61%
Max Drawdown (1Y) Largest decline over 1 year	-14.95%	-14.63%	-0.32%
Max Drawdown (3Y) Largest decline over 3 years	-28.20%	-25.97%	-2.23%
Max Drawdown (5Y) Largest decline over 5 years	-52.69%	-45.25%	-7.44%
Max Drawdown (10Y) Largest decline over 10 years	-54.92%	-53.14%	-1.78%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-21.85%	-27.47%	+5.62%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.75%	5.56%	+0.19%

Volatility

KRE vs. KBE - Volatility Comparison

SPDR S&P Regional Banking ETF (KRE) has a higher volatility of 6.34% compared to SPDR S&P Bank ETF (KBE) at 5.85%. This indicates that KRE's price experiences larger fluctuations and is considered to be riskier than KBE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	KRE	KBE	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.34%	5.85%	+0.49%
Volatility (6M) Calculated over the trailing 6-month period	16.05%	15.12%	+0.93%
Volatility (1Y) Calculated over the trailing 1-year period	23.33%	21.63%	+1.70%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	29.85%	27.25%	+2.60%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	31.85%	29.77%	+2.08%

KRE vs. KBE - Expense Ratio Comparison

Both KRE and KBE have an expense ratio of 0.35%.

Dividends

KRE vs. KBE - Dividend Comparison

KRE's dividend yield for the trailing twelve months is around 2.19%, which matches KBE's 2.19% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
KBE SPDR S&P Bank ETF	2.19%	2.51%	2.35%	2.78%	2.99%	2.16%	2.44%	2.33%	2.18%	1.36%	1.39%	1.70%
KRE SPDR S&P Regional Banking ETF	2.19%	2.45%	2.59%	2.99%	2.51%	1.97%	2.78%	2.21%	2.48%	1.40%	1.40%	1.80%

Frequently Asked Questions

Can I hold both KRE and KBE in my portfolio?

With a correlation of 0.99, KRE and KBE move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, KRE or KBE?

KRE has higher volatility (6.34%) compared to KBE (5.85%). In terms of maximum drawdown, KRE dropped -68.54% vs KBE's -83.15%.

Which ETF is better, KRE or KBE?

On 10-year performance, KBE leads with 11.09% vs 9.59% for KRE. Both ETFs have the same 0.35% expense ratio. On volatility, KBE has been the lower-risk option at 5.85%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, KRE or KBE?

Over the 10-year period, KBE has performed better with a 11.09% return vs 9.59%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, KRE or KBE?

KRE and KBE have the same expense ratio: 0.35% per year.

Which ETF pays a higher dividend yield, KRE or KBE?

KRE and KBE have nearly identical dividend yields, around 2.19%.

What is the main difference between KRE and KBE?

KRE tracks S&P Regional Banks Select Industry Index, while KBE tracks S&P Banks Select Industry Index.

Which has better risk-adjusted returns?

KRE currently has the higher Sharpe Ratio (1.27 vs 1.22), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.