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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.

Data updated September 4, 2026

Best for

  • KREInvestors who want higher current income (2.22% vs 1.29% for XLF).
  • XLFInvestors who want broad equity exposure.

Jump to the side-by-side numbers

Visual comparison

Key metrics

Projected income on $10K

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 18.30% total return against 10.28%. The picture flips over 10 years, though — XLF has compounded at 13.38% a year, ahead of KRE at 8.61%. XLF has been the steadier holding, though — annualized volatility of 16.1% against 27.6% 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.
SymbolYTD1Y3Y5Y10YSince Jun 2006Volatility Sharpe Sortino Max drawdown
KRE16.72%18.30%22.47%5.78%8.61%4.76%27.6%0.570.85-28.2%
XLF6.69%10.28%21.07%10.72%13.38%6.14%16.1%0.911.29-15.5%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of September 4, 2026. YTD and 1Y are cumulative; windows of one year or longer 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.

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
MetricKREXLF
Full nameSPDR S&P Regional Banking ETFState Street Financial Select Sector SPDR ETF
IssuerState StreetState Street
Underlying indexS&P Regional Banks Select Industry IndexFinancial Select Sector Index
Last Close$75.27 as of September 4, 2026$58.10 as of September 4, 2026
Distribution rate2.22%1.29%
Distribution Safety Score™ 10095
Safety-Adjusted Yield 2.22%1.23%
Expense ratio0.35%0.08%
AUM$4.07B$54.2B
Distribution frequencyQuarterlyQuarterly
ObjectiveTracks the S&P Regional Banks Select Industry Index.Provide exposure to the fund's underlying index or strategy per issuer materials.
Asset classEquityEquity
Inception date06/19/200612/16/1998
Beta1.110.72
Last dividend$0.417$0.187
Ex-dividend date06/22/202606/22/2026

Bottom lineChoose KRE if you want higher current income (2.22% vs 1.29% for XLF). Choose XLF if you want broad equity exposure.

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Income calculator

See how much monthly income a hypothetical investment would generate in each ETF at current yields.

State Street
ETFs179
Total AUM$2124B

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.

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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 2.22% vs 1.29% 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 ($54.2B), 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 2.22% vs 1.29% 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 0.7 vs 1.1 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 $10.75/month, at current distribution rates. Both pay quarterly distributions.

KRE yield2.22%
XLF yield1.29%
Monthly diff on $10K$7.75

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 1.11 for KRE and 0.72 for XLF, making XLF the less volatile of the two by this measure.

KRE beta1.11
XLF beta0.72

Fund details

KRE is managed by State Street (launched 06/19/2006) with $4.07B in assets. XLF is managed by State Street (launched 12/16/1998) with $54.2B in assets.

KRE AUM$4.07B
XLF AUM$54.2B
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Frequently asked questions

What is the current distribution rate for KRE and XLF?

KRE currently distributes 2.22% and XLF 1.29%, based on fund data updated September 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 0.72 vs 1.11 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 $18.50 per month ($222.00 annually). The same in XLF would produce about $10.75 per month ($129.00 annually).

Which has performed better historically, KRE or XLF?

KRE has outpaced XLF over the trailing twelve months, posting a 18.30% total return against 10.28%. The picture flips over 10 years, though — XLF has compounded at 13.38% a year, ahead of KRE at 8.61%. XLF has been the steadier holding, though — annualized volatility of 16.1% against 27.6% for KRE. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

KRE vs XLF — at a glance

Generated September 5, 2026.

Overview

KRE and XLF are both State Street equity ETFs tracking financials, but they operate at very different scopes. KRE focuses exclusively on regional banks—community and mid-sized lenders—while XLF provides broad exposure to the entire financial sector, including large banks, insurance, asset managers, and mortgage real estate investment trusts. The key distinction is depth versus breadth: KRE concentrates capital in a single industry subsector, while XLF spreads it across all major financial segments.

How they differ

The most fundamental difference is scope. That structural choice cascades into every other metric. KRE's 2.22% distribution rate more than doubles XLF's 1.29%, reflecting the higher dividend yields typically found in smaller regional institutions versus a diversified financial mix. KRE also carries a 1.11 beta, meaning it swings harder than the broader market; XLF's 0.72 beta suggests more muted moves relative to overall equity performance. On costs, XLF's 0.08% expense ratio is a significant advantage over KRE's 0.35%, and XLF's $54.2B in assets dwarfs KRE's $4.07B, giving it deeper liquidity and tighter bid-ask spreads.

Who each is best for

KRE: Fits investors seeking concentrated exposure to the regional banking industry—those who believe community and mid-sized banks will outperform large-cap financials or who want to tilt a financial allocation toward smaller lenders with potentially higher dividend yields.

XLF: Fits investors who want diversified financial sector exposure without picking among banks, insurers, and asset managers—those comfortable with lower income in exchange for broader sector coverage and lower volatility.

Key risks to know

  • Sector concentration in KRE: Holding only regional banks leaves no buffer if that subsector underperforms. Interest-rate swings, deposit competition from mega-banks, and credit losses hit this cohort uniformly; XLF's multi-segment structure offers some offset when banks weaken but insurance or credit demand strengthens.
  • Interest-rate sensitivity: Both funds are sensitive to rate movements, but KRE's smaller institutions often carry higher net-interest-margin volatility, meaning sudden rate cuts or rises can compress or expand earnings faster than in large-cap banks held by XLF.
  • Liquidity and funding risk in regional banks: Deposit flight and wholesale funding pressure affect smaller banks disproportionately; recent regional bank stress underscored that KRE holders face name-specific institution risk alongside sector risk.
  • Higher beta in KRE: A 1.11 beta versus XLF's 0.72 means KRE will amplify downside in equity market corrections, making it riskier for conservative income seekers despite its higher yield.

Bottom line

If you prioritize income and believe regional banks will outperform, KRE's concentrated yield and subsector bet may appeal; if you want lower costs, broader diversification, and less volatility within financials, XLF's larger asset base and sector breadth fit better. Neither choice guarantees future returns, and both are sensitive to interest-rate policy and credit cycles.

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

Learn the method

The metrics behind this comparison, explained in the Academy.

How to read a fund's stats How expense ratios eat returns Correlation between two funds

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