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KRE vs. XLF
Performance
Return for Risk
Drawdowns
Volatility
Dividends

KRE vs. XLF

Last updated Jun 24, 2026

KRE (SPDR S&P Regional Banking ETF) and XLF (State Street Financial Select Sector SPDR ETF) are both Financials Equities funds from State Street - KRE tracks the S&P Regional Banks Select Industry Index while XLF tracks the Financial Select Sector Index. Both are passively managed. Over the past 10 years, KRE returned 9.59%/yr vs 13.72%/yr for XLF. Their correlation of 0.84 suggests significant overlap in exposure. KRE charges 0.35%/yr vs 0.08%/yr for XLF.

Performance

KRE vs. XLF - 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 Financial Select Sector SPDR ETF (XLF). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, KRE achieves a 14.14% return, which is significantly higher than XLF's -0.77% return. Over the past 10 years, KRE has underperformed XLF with an annualized return of 9.59%, while XLF has yielded a comparatively higher 13.72% 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%

XLF

1D
0.34%
1M
4.10%
YTD
-0.77%
6M
-1.95%
1Y
7.67%
3Y*
19.94%
5Y*
10.00%
10Y*
13.72%
*Multi-year figures are annualized to reflect compound growth (CAGR)

KRE vs. XLF - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
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%
XLF
State Street Financial Select Sector SPDR ETF		-0.77%14.90%30.56%12.03%-10.59%34.80%-1.74%31.88%-13.06%22.00%

Correlation

The correlation between KRE and XLF is 0.69, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.69

Correlation (3Y)
Calculated over the trailing 3-year period

0.73

Correlation (5Y)
Calculated over the trailing 5-year period

0.79

Correlation (10Y)
Calculated over the trailing 10-year period

0.83

Correlation (All Time)
Calculated using the full available price history since Jun 22, 2006

0.84

The correlation between KRE and XLF shifts across timeframes, from 0.69 (1 year) to 0.84 (all time), reflecting how their relationship changes across market environments.

KRE vs. XLF - Sectors Allocation Comparison

Sectors
KRE
XLF

Financial Services

100.0%
98.0%

Basic Materials

-

-

Communication Services

-

-

Consumer Cyclical

-

-

Consumer Defensive

-

-

Energy

-

-

Healthcare

-

-

Industrials

-

0.2%

Real Estate

-

-

Technology

-

1.8%

Utilities

-

-

Financial Services

KRE
100.0%
XLF
98.0%

Basic Materials

KRE

-

XLF

-

Communication Services

KRE

-

XLF

-

Consumer Cyclical

KRE

-

XLF

-

Consumer Defensive

KRE

-

XLF

-

Energy

KRE

-

XLF

-

Healthcare

KRE

-

XLF

-

Industrials

KRE

-

XLF
0.2%

Real Estate

KRE

-

XLF

-

Technology

KRE

-

XLF
1.8%

Utilities

KRE

-

XLF

-

Compare stocks, funds, or ETFs

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SPDR S&P Regional Banking ETF

State Street Financial Select Sector SPDR ETF

Often compared with KRE:
KRE vs. KBEKRE vs. KBWBKRE vs. DPSTKRE vs. IATKRE vs. VFHKRE vs. VOOKRE vs. NVDA
Often compared with XLF:
XLF vs. SPYXLF vs. VFHXLF vs. KBWBXLF vs. XLVXLF vs. KBEXLF vs. JPMXLF vs. IYF

Return for Risk

KRE vs. XLF — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
KRE
KRE Risk / Return Rank: 3737
Overall Rank
KRE Sharpe Ratio Rank: 3737
Sharpe Ratio Rank
KRE Sortino Ratio Rank: 3636
Sortino Ratio Rank
KRE Omega Ratio Rank: 3838
Omega Ratio Rank
KRE Calmar Ratio Rank: 4141
Calmar Ratio Rank
KRE Martin Ratio Rank: 3535
Martin Ratio Rank
XLF
XLF Risk / Return Rank: 1515
Overall Rank
XLF Sharpe Ratio Rank: 1717
Sharpe Ratio Rank
XLF Sortino Ratio Rank: 1616
Sortino Ratio Rank
XLF Omega Ratio Rank: 1616
Omega Ratio Rank
XLF Calmar Ratio Rank: 1515
Calmar Ratio Rank
XLF Martin Ratio Rank: 1515
Martin Ratio Rank
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. XLF - 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 Financial Select Sector SPDR ETF (XLF). 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.

KREXLFDifference
Sharpe ratioReturn per unit of total volatility
1.27
0.53

+0.74

Sortino ratioReturn per unit of downside risk
1.81
0.81

+1.00

Omega ratioGain probability vs. loss probability

1.24

1.10

+0.14

Calmar ratioReturn relative to maximum drawdown

1.98

0.52

+1.46

Martin ratioReturn relative to average drawdown

5.13

1.33

+3.81

KRE vs. XLF - Sharpe Ratio Comparison

The current KRE Sharpe Ratio is 1.27, which is higher than the XLF Sharpe Ratio of 0.53. The chart below compares the historical Sharpe Ratios of KRE and XLF, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Drawdowns

KRE vs. XLF - Drawdown Comparison

The maximum KRE drawdown since its inception was -68.54%, smaller than the maximum XLF drawdown of -82.69%. Use the drawdown chart below to compare losses from any high point for KRE and XLF.

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Drawdown Indicators

KREXLFDifference

Max Drawdown

Largest peak-to-trough decline

-68.54%

-82.69%

+14.15%

Max Drawdown (1Y)

Largest decline over 1 year

-14.95%

-14.79%

-0.16%

Max Drawdown (3Y)

Largest decline over 3 years

-28.20%

-15.54%

-12.66%

Max Drawdown (5Y)

Largest decline over 5 years

-52.69%

-25.81%

-26.88%

Max Drawdown (10Y)

Largest decline over 10 years

-54.92%

-42.86%

-12.06%

Current Drawdown

Current decline from peak

0.00%

-3.64%

+3.64%

Average Drawdown

Average peak-to-trough decline

-21.85%

-19.99%

-1.86%

Ulcer Index

Depth and duration of drawdowns from previous peaks

5.75%

5.79%

-0.04%

Volatility

KRE vs. XLF - Volatility Comparison

SPDR S&P Regional Banking ETF (KRE) has a higher volatility of 6.34% compared to State Street Financial Select Sector SPDR ETF (XLF) at 4.12%. This indicates that KRE's price experiences larger fluctuations and is considered to be riskier than XLF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

KREXLFDifference

Volatility (1M)

Calculated over the trailing 1-month period

6.34%

4.12%

+2.22%

Volatility (6M)

Calculated over the trailing 6-month period

16.05%

11.27%

+4.78%

Volatility (1Y)

Calculated over the trailing 1-year period

23.33%

14.62%

+8.71%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

29.85%

18.58%

+11.27%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

31.85%

22.11%

+9.74%

KRE vs. XLF - Expense Ratio Comparison

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

Dividends

KRE vs. XLF - Dividend Comparison

KRE's dividend yield for the trailing twelve months is around 2.19%, more than XLF's 1.50% yield.

PositionTTM20252024202320222021202020192018201720162015
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%
XLF
State Street Financial Select Sector SPDR ETF		1.50%1.31%1.42%1.71%2.04%1.63%2.03%1.87%2.08%1.48%21.10%1.95%

Frequently Asked Questions

KRE and XLF have a correlation of 0.69, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

KRE has higher volatility (6.34%) compared to XLF (4.12%). In terms of maximum drawdown, KRE dropped -68.54% vs XLF's -82.69%.

On 10-year performance, XLF leads with 13.72% vs 9.59% for KRE. On fees, XLF is cheaper at 0.08% per year. On volatility, XLF has been the lower-risk option at 4.12%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, XLF has performed better with a 13.72% return vs 9.59%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

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

KRE has the higher dividend yield at 2.19%, compared with 1.50% for XLF.

KRE tracks S&P Regional Banks Select Industry Index, while XLF tracks Financial Select Sector Index. Their fees differ too: 0.35% for KRE and 0.08% for XLF.

KRE currently has the higher Sharpe Ratio (1.27 vs 0.53), 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.

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