KRE vs. XLE

Last updated Jun 4, 2026

KRE (SPDR S&P Regional Banking ETF) and XLE (State Street Energy Select Sector SPDR ETF) are both exchange-traded funds - KRE is a Financials Equities fund tracking the S&P Regional Banks Select Industry Index, while XLE is a Energy Equities fund tracking the Energy Select Sector Index. Both are passively managed. Over the past 10 years, KRE returned 7.80%/yr vs 10.22%/yr for XLE. At a 0.50 correlation, their price movements are largely independent. KRE charges 0.35%/yr vs 0.08%/yr for XLE.

Performance

KRE vs. XLE - Performance Comparison

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

Returns By Period

In the year-to-date period, KRE achieves a 5.35% return, which is significantly lower than XLE's 32.17% return. Over the past 10 years, KRE has underperformed XLE with an annualized return of 7.80%, while XLE has yielded a comparatively higher 10.22% annualized return.

KRE

• 1D: -2.39%
• 1M: -1.61%
• YTD: 5.35%
• 6M: 6.27%
• 1Y: 21.36%
• 3Y*: 20.63%
• 5Y*: 1.92%
• 10Y*: 7.80%

XLE

• 1D: 1.29%
• 1M: -1.14%
• YTD: 32.17%
• 6M: 29.80%
• 1Y: 45.00%
• 3Y*: 17.46%
• 5Y*: 20.44%
• 10Y*: 10.22%

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

KRE vs. XLE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
KRE SPDR S&P Regional Banking ETF	5.35%	10.21%	18.58%	-7.61%	-15.08%	39.29%	-7.43%	27.44%	-18.81%	7.49%
XLE State Street Energy Select Sector SPDR ETF	32.17%	7.88%	5.56%	-0.63%	64.32%	53.28%	-32.67%	11.74%	-18.22%	-0.89%

Correlation

The correlation between KRE and XLE is 0.11, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.11
Correlation (3Y) Calculated over the trailing 3-year period	0.32
Correlation (5Y) Calculated over the trailing 5-year period	0.41
Correlation (10Y) Calculated over the trailing 10-year period	0.49
Correlation (All Time) Calculated using the full available price history since Jun 23, 2006	0.50

Over the past year, the correlation between KRE and XLE has dropped to 0.11 - well below their long-term average of 0.50, suggesting their price drivers have been diverging.

KRE vs. XLE - Sectors Allocation Comparison

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

Return for Risk

KRE vs. XLE — Risk / Return Rank

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

KRE

KRE Risk / Return Rank: 26
KRE Sharpe Ratio Rank: 25
KRE Sortino Ratio Rank: 25
KRE Omega Ratio Rank: 26
KRE Calmar Ratio Rank: 29
KRE Martin Ratio Rank: 26

XLE

XLE Risk / Return Rank: 63
XLE Sharpe Ratio Rank: 65
XLE Sortino Ratio Rank: 59
XLE Omega Ratio Rank: 56
XLE Calmar Ratio Rank: 73
XLE Martin Ratio Rank: 60

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. XLE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR S&P Regional Banking ETF (KRE) and State Street Energy Select Sector SPDR ETF (XLE). 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.

	KRE	XLE	Difference
Sharpe ratio Return per unit of total volatility	0.92	2.21	-1.29
Sortino ratio Return per unit of downside risk	1.39	2.84	-1.45
Omega ratio Gain probability vs. loss probability	1.18	1.35	-0.17
Calmar ratio Return relative to maximum drawdown	1.44	3.75	-2.32
Martin ratio Return relative to average drawdown	3.72	10.92	-7.20
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

KRE vs. XLE - Sharpe Ratio Comparison

The current KRE Sharpe Ratio is 0.92, which is lower than the XLE Sharpe Ratio of 2.21. The chart below compares the historical Sharpe Ratios of KRE and XLE, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	KRE	XLE	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.92	2.21	-1.29
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.06	0.79	-0.73
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.24	0.35	-0.10
Sharpe Ratio (All Time) Calculated using the full available price history	0.13	0.31	-0.18

Drawdowns

KRE vs. XLE - Drawdown Comparison

The maximum KRE drawdown since its inception was -68.54%, roughly equal to the maximum XLE drawdown of -71.26%. Use the drawdown chart below to compare losses from any high point for KRE and XLE.

Drawdown Indicators

	KRE	XLE	Difference
Max Drawdown Largest peak-to-trough decline	-68.54%	-71.26%	+2.72%
Max Drawdown (1Y) Largest decline over 1 year	-14.95%	-12.05%	-2.90%
Max Drawdown (3Y) Largest decline over 3 years	-28.20%	-20.14%	-8.06%
Max Drawdown (5Y) Largest decline over 5 years	-52.69%	-26.04%	-26.65%
Max Drawdown (10Y) Largest decline over 10 years	-54.92%	-66.81%	+11.89%
Current Drawdown Current decline from peak	-7.27%	-6.15%	-1.12%
Average Drawdown Average peak-to-trough decline	-21.90%	-17.98%	-3.92%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.75%	4.14%	+1.61%

Volatility

KRE vs. XLE - Volatility Comparison

The current volatility for SPDR S&P Regional Banking ETF (KRE) is 6.14%, while State Street Energy Select Sector SPDR ETF (XLE) has a volatility of 8.25%. This indicates that KRE experiences smaller price fluctuations and is considered to be less risky than XLE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	KRE	XLE	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.14%	8.25%	-2.11%
Volatility (6M) Calculated over the trailing 6-month period	15.84%	16.58%	-0.74%
Volatility (1Y) Calculated over the trailing 1-year period	23.37%	20.53%	+2.84%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	29.98%	26.02%	+3.96%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	31.92%	29.59%	+2.33%

KRE vs. XLE - Expense Ratio Comparison

KRE has a 0.35% expense ratio, which is higher than XLE's 0.08% expense ratio.

Dividends

KRE vs. XLE - Dividend Comparison

KRE's dividend yield for the trailing twelve months is around 2.32%, less than XLE's 2.54% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
KRE SPDR S&P Regional Banking ETF	2.32%	2.45%	2.59%	2.99%	2.51%	1.97%	2.78%	2.21%	2.48%	1.40%	1.40%	1.80%
XLE State Street Energy Select Sector SPDR ETF	2.54%	3.28%	3.36%	3.55%	3.68%	4.21%	5.62%	6.72%	3.54%	3.03%	2.26%	3.39%

Frequently Asked Questions

Can I hold both KRE and XLE in my portfolio?

KRE and XLE have a correlation of 0.11, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, KRE or XLE?

XLE has higher volatility (8.25%) compared to KRE (6.14%). In terms of maximum drawdown, KRE dropped -68.54% vs XLE's -71.26%.

Which ETF is better, KRE or XLE?

On 10-year performance, XLE leads with 10.22% vs 7.80% for KRE. On fees, XLE is cheaper at 0.08% per year. On volatility, KRE has been the lower-risk option at 6.14%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, KRE or XLE?

Over the 10-year period, XLE has performed better with a 10.22% return vs 7.80%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, KRE or XLE?

XLE is cheaper with a 0.08% expense ratio, compared with 0.35% for KRE.

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

XLE has the higher dividend yield at 2.54%, compared with 2.32% for KRE.

What is the main difference between KRE and XLE?

KRE is categorized as Financials Equities, while XLE is Energy Equities. KRE tracks S&P Regional Banks Select Industry Index, while XLE tracks Energy Select Sector Index. Their fees differ too: 0.35% for KRE and 0.08% for XLE.

Which has better risk-adjusted returns?

XLE currently has the higher Sharpe Ratio (2.21 vs 0.92), 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.