XLF vs. KRE: Which State Street Financial Sector ETF Is the Better Buy
XLF provides broad, large-cap financial exposure with lower fees, while KRE offers a more focused, higher-yield play on regional lenders.
Overview
Investors looking for financial sector exposure typically need to choose between broad diversification and more concentrated sub-sector bets. The State Street Financial Select Sector SPDR ETF (NYSEMKT:XLF) spreads its holdings across large-cap banks, insurers, and payment companies, while the State Street SPDR S&P Regional Banking ETF (NYSEMKT:KRE) zeroes in on regional lenders.
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Details
Cost-conscious investors may prefer XLF's expense ratio of 0.08%, which is notably cheaper than KRE's 0.35%. KRE pays the higher dividend yield, though -- 2.10% versus XLF's 1.42%.
Source
Originally published at www.fool.com.
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