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.
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.
See our curated list of related YouTube videos on KRE and XLF.
Projections assume the current yield and share price remain constant. Actual results will vary.
Total returns
KRE has outpaced XLF over the trailing twelve months, posting a 20.79% total return against 8.57%. The picture flips over 10 years, though — XLF has compounded at 13.55% a year, ahead of KRE at 9.27%. XLF has been the steadier holding, though — annualized volatility of 16.1% against 28.1% for KRE. Figures are total returns: price change plus every distribution reinvested.
Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of July 14, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since Jun 2006” measures every fund from June 22, 2006 — the youngest fund's first trading day — 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.
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 2.22% vs 1.33% 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 0.09% compared to 0.35%.
They track different benchmarks: KRE is linked to S&P Regional Banks Select Industry Index while XLF tracks Financial Select Sector Index, which means their performance drivers differ.
XLF is the larger fund by assets ($49.5B), which generally means tighter spreads and better liquidity.
Who should choose each?
Choose KRE
SPDR S&P Regional Banking ETF
Want higher current income — KRE yields 2.22% vs 1.33% 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 0.09% expense ratio vs 0.35% for KRE.
Prefer lower volatility — a beta of 0.8 vs 1.2 for KRE.
Not sure? Use the income calculator and snapshot above to weigh these trade-offs against your own goals.
Deep dive
Yield & income
On a $10,000 investment, KRE would generate roughly $18.50/month, while XLF would produce $11.08/month, at current distribution rates. Both pay quarterly distributions.
KRE yield2.22%
XLF yield1.33%
Monthly diff on $10K$7.42
Cost & efficiency
Over 10 years on $10,000, KRE would cost approximately $350 in fees vs $90 for XLF (simplified, not compounded). The $260.00 difference may be offset by yield or performance.
KRE ER0.35%
XLF ER0.09%
Strategy & risk
KRE tracks S&P Regional Banks Select Industry Index, while XLF tracks Financial Select Sector Index with an index approach. Beta is 1.18 for KRE and 0.75 for XLF, indicating XLF is less volatile relative to the market.
KRE beta1.18
XLF beta0.75
Fund details
KRE is managed by State Street (launched 06/19/2006) with $4.01B in assets. XLF is managed by State Street (launched 12/16/1998) with $49.5B in assets.
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Frequently asked questions
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.
Which has lower fees, KRE or XLF?
KRE has an expense ratio of 0.35% while XLF charges 0.09%. 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 $18.50 per month ($222.00 annually). The same in XLF would produce about $11.08 per month ($133.00 annually).
Which has performed better historically, KRE or XLF?
KRE has outpaced XLF over the trailing twelve months, posting a 20.79% total return against 8.57%. The picture flips over 10 years, though — XLF has compounded at 13.55% a year, ahead of KRE at 9.27%. XLF has been the steadier holding, though — annualized volatility of 16.1% against 28.1% for KRE. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.
Explore related screeners
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