ETF Comparison

KRE vs XLF: Which Is the Better Pick in 2026?

A head-to-head comparison of SPDR S&P Regional Banking ETF and State Street Financial Select Sector SPDR ETF covering yield, cost, risk, and income potential.

Updated October 9, 2026

How these figures are calculated: methodology.

Best for

KREInvestors who want higher current income (2.39% vs 1.52% for XLF).
XLFInvestors who want broad equity exposure.

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Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

100% reinvested · ex-date convention. Period returns use this fixed assumption, independent of chart settings. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year.

KRE has outpaced XLF over the trailing twelve months, posting a 11.72% total return against 3.89%. The picture flips over 10 years, though — XLF has compounded at 12.81% a year, ahead of KRE at 7.39%. XLF has been the steadier holding, though — annualized volatility of 16.1% against 27.4% for KRE. Figures are total returns: price change plus every distribution reinvested.

Total return and risk statistics by fund. Each row is one fund; each column is one period or statistic.
Symbol	YTD cumulative	1Y cumulative	3Y annualized	5Y annualized	10Y annualized	Since Jun 2006	Volatility	Sharpe	Sortino	Max drawdown
KRE	7.62%	11.72%	22.14%	2.29%	7.39%	4.32%	27.4%	0.57	0.84	-28.2%
XLF	0.85%	3.89%	20.14%	8.85%	12.81%	5.82%	16.1%	0.86	1.22	-15.5%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of October 9, 2026. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year. “Since Jun 2006” measures every fund from June 22, 2006 — the start of shared available history — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
Metric	KRE	XLF
Full name	SPDR S&P Regional Banking ETF	State Street Financial Select Sector SPDR ETF
Issuer	State Street	State Street
Underlying index	S&P Regional Banks Select Industry Index	Financial Select Sector Index
Last Close	$69.01 as of October 9, 2026	$54.73 as of October 9, 2026
Distribution rate	2.39%	1.52%
Trailing 12-month yield	2.33%	1.51%
Distribution Safety Score™	100	95
Safety-Adjusted Yield	2.39%	1.44%
Expense ratio	0.35%	0.08%
AUM	$3.60B	$50.0B
Distribution frequency	Quarterly	Quarterly
Objective	Tracks the S&P Regional Banks Select Industry Index.	Provide exposure to the fund's underlying index or strategy per issuer materials.
Asset class	Equity	Equity
Inception date	06/19/2006	12/16/1998
Beta	1.04	0.75
Last dividend	$0.412	$0.197
Ex-dividend date	09/21/2026	09/21/2026

Bottom lineChoose KRE if you want higher current income (2.39% vs 1.52% for XLF). Choose XLF if you want broad equity exposure.

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Income calculator

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State Street

ETFs179

Total AUM$2144B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

State Street Global Advisors (SSGA) is one of the largest ETF providers globally, known for its flagship SPDR suite of exchange-traded products that serve both institutional and retail investors across a broad range of asset classes. Their 88-fund lineup spans diverse strategies including sector exposure (Select Sector SPDR), income generation (Income and Select Sector SPDR Premium Income families), commodities (including the widely-held GLD gold ETF), bonds, ESG-focused investments, and thematic allocations, with popular tickers like DIA (Diamonds Trust), FEZ (Eurozone exposure), and JNK (high-yield bonds) among their most recognized funds. The issuer is characterized by its comprehensive coverage across multiple market segments and its emphasis on both traditional index-based products and specialized strategies like covered call income funds and factor-based investing.

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Quick verdict

KRE (SPDR S&P Regional Banking ETF) and XLF (State Street Financial Select Sector SPDR ETF) are both quarterly-pay dividend ETFs, but they take different approaches.

KRE offers the higher yield at 2.39% vs 1.52% for XLF. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

XLF is cheaper with an expense ratio of 0.08% compared to 0.35%.

They have different reference exposures: KRE is linked to S&P Regional Banks Select Industry Index while XLF is linked to Financial Select Sector Index, which means their performance drivers differ.

XLF is the larger fund by assets ($50.0B), but assets alone do not establish trading costs or liquidity.

Who should choose each?

Choose KRE

SPDR S&P Regional Banking ETF

Want higher current income — KRE yields 2.39% vs 1.52% for XLF.
Want broad equity exposure.

Choose XLF

State Street Financial Select Sector SPDR ETF

Want broad equity exposure.
Want to keep costs low — a 0.08% expense ratio vs 0.35% for KRE.
Prefer lower volatility — a beta of 0.8 vs 1.0 for KRE.

Not sure? Use the income calculator and snapshot above to weigh these trade-offs against your own goals.

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Deep dive

Yield & income

On a $10,000 investment, KRE would generate roughly $59.75 cash per distribution, while XLF would produce $38.00 cash per distribution, at current distribution rates. Both pay quarterly distributions.

KRE yield2.39%

XLF yield1.52%

Cash diff on $10K$21.75

Cost & efficiency

Over 10 years on $10,000, KRE would cost approximately $350 in fees vs $80 for XLF (simplified, not compounded). The $270.00 difference may be offset by yield or performance.

KRE ER0.35%

XLF ER0.08%

Strategy & risk

KRE tracks S&P Regional Banks Select Industry Index, while XLF tracks Financial Select Sector Index with an index approach. Beta is 1.04 for KRE and 0.75 for XLF, making XLF the less volatile of the two by this measure.

KRE beta1.04

XLF beta0.75

Fund details

KRE is managed by State Street (launched 06/19/2006) with $3.60B in assets. XLF is managed by State Street (launched 12/16/1998) with $50.0B in assets.

KRE AUM$3.60B

XLF AUM$50.0B

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Frequently asked questions

What is the current distribution rate for KRE and XLF?

KRE currently distributes 2.39% and XLF 1.52%, based on fund data updated October 2026. Distribution rate moves with both the payout and the share price, so check the as-of date before relying on either figure.

Is KRE or XLF better for dividend income?

It depends on your goals. KRE currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

What is the difference between KRE and XLF?

KRE (SPDR S&P Regional Banking ETF) tracks S&P Regional Banks Select Industry Index, while XLF (State Street Financial Select Sector SPDR ETF) tracks Financial Select Sector Index with an index approach. They are issued by State Street and State Street respectively.

Can I hold both KRE and XLF?

Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.

Is KRE or XLF safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — KRE scores 100, XLF scores 95, so KRE's payout currently looks the more resilient of the two. XLF has also shown lower price volatility (beta 0.75 vs 1.04 for KRE). No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

Which has lower fees, KRE or XLF?

KRE has an expense ratio of 0.35% while XLF charges 0.08%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in KRE vs XLF generate?

At current rates, $10,000 in KRE would generate roughly $59.75 cash per distribution ($239.00 annually). The same in XLF would produce about $38.00 cash per distribution ($152.00 annually).

Which has performed better historically, KRE or XLF?

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Dividend dates and history

KRE vs XLF — at a glance

Generated October 10, 2026.

Overview

KRE and XLF are both State Street equity ETFs tracking financial-sector indexes, but they operate at different scopes. XLF follows the broad Financial Select Sector Index, capturing all major banks, insurance, real estate, and diversified financial companies within the S&P 500. KRE is narrower: it tracks only regional and community banks via the S&P Regional Banks Select Industry Index. The key distinction is scope — XLF is a wide financials net; KRE is a regional-bank-only play.

How they differ

XLF holds the entire financial sector of the S&P 500, while KRE isolates one subsegment (regional banks), making KRE meaningfully more concentrated. That narrowness shows in beta: KRE's 1.04 is nearly market-neutral, while XLF's 0.75 is lower at 0.75, reflecting larger-cap stability in the broader financial sector. The yield gap is also material — KRE offers 2.39% versus 1.52% for XLF, a spread of 0.87% percentage points. Both distribute quarterly.

Who each is best for

KRE: Fits investors seeking higher current yield from a concentrated regional-banking exposure, with conviction that smaller and mid-size banks will outperform diversified financial peers and tolerance for above-market volatility in a sector-dependent basket.

XLF: Fits investors wanting broad-based financial sector participation at minimal cost, with lower volatility expectations and a preference for diversification across banks, insurers, REITs, and financial-services firms rather than regional-bank concentration.

Key risks to know

Concentration risk in KRE. Focusing solely on regional banks removes the diversification buffer that XLF gains from insurance, diversified financials, and REIT holdings within the financial sector. Regional banks also face disproportionate exposure to commercial real estate cycles and regional economic shocks.

Interest-rate sensitivity. Both funds are acutely sensitive to changes in the yield curve and Fed policy. A sustained decline in long-term rates or widening of credit spreads can compress net-interest margins and hurt valuations across both portfolios, though KRE's tighter regional focus may amplify that effect.

Regulatory and capital-requirement risk. Regional banks in KRE operate under evolving capital and stress-test regimes. Changes to capital requirements, stress-testing methodology, or lending rules can constrain dividends and earnings, affecting distributions and NAV.

Holdings overlap. Large regional banks appear in both portfolios, so correlation between the two will be high in volatile periods; holding both offers less diversification than their separate sector exposure suggests.

KRE's higher cost. The 0.35% expense ratio is 0.27% percentage points higher than XLF's 0.08%, which compounds over time, especially for buy-and-hold investors.

Bottom line

If you want higher current income from regional banks and accept concentrated sector risk and higher volatility, KRE's 2.39% yield stands out; if you prefer lower fees, broader financial-sector diversification, and damped volatility, XLF's $50.0B asset base and 0.08% expense ratio make it a more economical all-financials vehicle. Past performance does not predict future results.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.

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The metrics behind this comparison, explained in the Academy.

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These comparisons follow the Dividend Vision methodology.