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Yahoo
4 days ago
- Business
- Yahoo
Robinhood Is a ‘Prime Candidate' for S&P 500 Addition, BofA Says
(Bloomberg) -- Robinhood Markets Inc. is a 'prime candidate' to enter the S&P 500 Index in the rebalancing set to be announced Friday, a milestone that would spur passive funds to snap up shares of the online brokerage, according to Bank of America Corp. ICE Moves to DNA-Test Families Targeted for Deportation with New Contract The Global Struggle to Build Safer Cars At London's New Design Museum, Visitors Get Hands-On Access NYC Residents Want Safer Streets, Cheaper Housing, Survey Says The Buffalo Architect Fighting for Women in Design The stock was in focus among investors at a meeting about potential index changes for financial stocks, analysts led by Craig Siegenthaler wrote in a note. Robinhood's stock has surged as both equity and cryptocurrency markets rally, and on Tuesday, it closed at its first record high in nearly four years. The shares were 0.3% higher on Wednesday afternoon after swinging between gains and losses. Companies that win addition to the US benchmark can see a big stock boost. Crypto-exchange operator Coinbase Global Inc. notched a 34% gain in the week its addition was announced in May, even as investors digested news of a hack and regulatory scrutiny. Passive mutual funds and exchange-traded funds that track the S&P 500 are required to reshuffle their holdings to match the gauge, and the Bank of America analysts expect 'significant buying activity from passive funds' if Robinhood joins the index. 'The S&P 500 and Russell 1000 are the two major benchmarks for our large cap long-only clients,' the analysts wrote. 'When companies are added, we experience significantly higher interest from long-only portfolio managers which are essentially now forced to cover them and make a call.' Ares Management Corp., Carvana Co. and AppLovin Corp. are among other companies that the analysts flagged as possible additions, while Interactive Brokers Group Inc. could migrate from the S&P 400. Brookfield Asset Management Ltd. is likely to be added to the S&P Total Market Index in June after it won entry to the Russell 1000, with addition to the S&P 500 coming later in the year, they wrote. Cavs Owner Dan Gilbert Wants to Donate His Billions—and Walk Again YouTube Is Swallowing TV Whole, and It's Coming for the Sitcom Millions of Americans Are Obsessed With This Japanese Barbecue Sauce Is Elon Musk's Political Capital Spent? Trump Considers Deporting Migrants to Rwanda After the UK Decides Not To ©2025 Bloomberg L.P.
Yahoo
6 days ago
- Business
- Yahoo
Should You Invest in the SPDR S&P Regional Banking ETF (KRE)?
The SPDR S&P Regional Banking ETF (KRE) was launched on 06/19/2006, and is a passively managed exchange traded fund designed to offer broad exposure to the Financials - Regional Banks segment of the equity market. While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency. Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Financials - Regional Banks is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 8, placing it in top 50%. The fund is sponsored by State Street Global Advisors. It has amassed assets over $3.28 billion, making it one of the larger ETFs attempting to match the performance of the Financials - Regional Banks segment of the equity market. KRE seeks to match the performance of the S&P Regional Banks Select Industry Index before fees and expenses. The S&P Regional Banks Select Industry Index represents the regional banks segment of the S&P Total Market Index. When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal. Annual operating expenses for this ETF are 0.35%, making it one of the least expensive products in the space. It has a 12-month trailing dividend yield of 2.75%. While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis. This ETF has heaviest allocation in the Financials sector--about 100% of the portfolio. Looking at individual holdings, Huntington Bancshares Inc (HBAN) accounts for about 3% of total assets, followed by East West Bancorp Inc (EWBC) and M + T Bank Corp (MTB). The top 10 holdings account for about 28.14% of total assets under management. The ETF has lost about -5.12% so far this year and it's up approximately 21.33% in the last one year (as of 06/02/2025). In that past 52-week period, it has traded between $46.12 and $68.90. The ETF has a beta of 0.87 and standard deviation of 31.90% for the trailing three-year period, making it a high risk choice in the space. With about 142 holdings, it effectively diversifies company-specific risk. SPDR S&P Regional Banking ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, KRE is a great option for investors seeking exposure to the Financials ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well. Invesco KBW Regional Banking ETF (KBWR) tracks KBW Nasdaq Regional Banking Index and the iShares U.S. Regional Banks ETF (IAT) tracks Dow Jones U.S. Select Regional Banks Index. Invesco KBW Regional Banking ETF has $48.15 million in assets, iShares U.S. Regional Banks ETF has $617.26 million. KBWR has an expense ratio of 0.35% and IAT charges 0.40%. To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SPDR S&P Regional Banking ETF (KRE): ETF Research Reports M&T Bank Corporation (MTB) : Free Stock Analysis Report Huntington Bancshares Incorporated (HBAN) : Free Stock Analysis Report East West Bancorp, Inc. (EWBC) : Free Stock Analysis Report iShares U.S. Regional Banks ETF (IAT): ETF Research Reports Invesco KBW Regional Banking ETF (KBWR): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
27-05-2025
- Business
- Yahoo
Is SPDR S&P Regional Banking ETF (KRE) a Strong ETF Right Now?
Launched on 06/19/2006, the SPDR S&P Regional Banking ETF (KRE) is a smart beta exchange traded fund offering broad exposure to the Financials ETFs category of the market. For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment. Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency. If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies. Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance. While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results. The fund is sponsored by State Street Global Advisors. It has amassed assets over $3.24 billion, making it one of the larger ETFs in the Financials ETFs. This particular fund, before fees and expenses, seeks to match the performance of the S&P Regional Banks Select Industry Index. The S&P Regional Banks Select Industry Index represents the regional banks segment of the S&P Total Market Index. Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same. Operating expenses on an annual basis are 0.35% for this ETF, which makes it one of the least expensive products in the space. It's 12-month trailing dividend yield comes in at 2.77%. Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis. For KRE, it has heaviest allocation in the Financials sector --about 100% of the portfolio. Taking into account individual holdings, Huntington Bancshares Inc (HBAN) accounts for about 3% of the fund's total assets, followed by East West Bancorp Inc (EWBC) and M + T Bank Corp (MTB). The top 10 holdings account for about 28.14% of total assets under management. The ETF has lost about -5.92% so far this year and is up about 18.49% in the last one year (as of 05/27/2025). In the past 52-week period, it has traded between $46.12 and $68.90. The fund has a beta of 0.87 and standard deviation of 31.92% for the trailing three-year period, which makes KRE a high risk choice in this particular space. With about 142 holdings, it effectively diversifies company-specific risk. SPDR S&P Regional Banking ETF is an excellent option for investors seeking to outperform the Financials ETFs segment of the market. There are other ETFs in the space which investors could consider as well. Invesco KBW Regional Banking ETF (KBWR) tracks KBW Nasdaq Regional Banking Index and the iShares U.S. Regional Banks ETF (IAT) tracks Dow Jones U.S. Select Regional Banks Index. Invesco KBW Regional Banking ETF has $47.26 million in assets, iShares U.S. Regional Banks ETF has $604.61 million. KBWR has an expense ratio of 0.35% and IAT charges 0.40%. Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Financials ETFs. To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SPDR S&P Regional Banking ETF (KRE): ETF Research Reports M&T Bank Corporation (MTB) : Free Stock Analysis Report Huntington Bancshares Incorporated (HBAN) : Free Stock Analysis Report East West Bancorp, Inc. (EWBC) : Free Stock Analysis Report iShares U.S. Regional Banks ETF (IAT): ETF Research Reports Invesco KBW Regional Banking ETF (KBWR): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
26-05-2025
- Business
- Yahoo
Is SPDR S&P Insurance ETF (KIE) a Strong ETF Right Now?
A smart beta exchange traded fund, the SPDR S&P Insurance ETF (KIE) debuted on 11/08/2005, and offers broad exposure to the Financials ETFs category of the market. Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy. Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency. If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies. This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics. This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results. The fund is managed by State Street Global Advisors, and has been able to amass over $938.93 million, which makes it one of the average sized ETFs in the Financials ETFs. KIE seeks to match the performance of the S&P Insurance Select Industry Index before fees and expenses. The S&P Insurance Select Industry Index represents the insurance segment of the S&P Total Market Index. Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same. Annual operating expenses for KIE are 0.35%, which makes it one of the least expensive products in the space. KIE's 12-month trailing dividend yield is 1.63%. ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis. This ETF has heaviest allocation in the Financials sector - about 100% of the portfolio. Taking into account individual holdings, Palomar Holdings Inc (PLMR) accounts for about 2.24% of the fund's total assets, followed by Oscar Health Inc Class A (OSCR) and Wr Berkley Corp (WRB). The top 10 holdings account for about 20.71% of total assets under management. So far this year, KIE has added roughly 2.65%, and was up about 16.23% in the last one year (as of 05/26/2025). During this past 52-week period, the fund has traded between $48.97 and $62.03. The ETF has a beta of 0.76 and standard deviation of 18.35% for the trailing three-year period, making it a medium risk choice in the space. With about 55 holdings, it effectively diversifies company-specific risk. SPDR S&P Insurance ETF is a reasonable option for investors seeking to outperform the Financials ETFs segment of the market. However, there are other ETFs in the space which investors could consider. Invesco KBW Property & Casualty Insurance ETF (KBWP) tracks KBW Nasdaq Property & Casualty Index and the iShares U.S. Insurance ETF (IAK) tracks Dow Jones U.S. Select Insurance Index. Invesco KBW Property & Casualty Insurance ETF has $483 million in assets, iShares U.S. Insurance ETF has $819.18 million. KBWP has an expense ratio of 0.35% and IAK charges 0.39%. Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Financials ETFs. To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SPDR S&P Insurance ETF (KIE): ETF Research Reports W.R. Berkley Corporation (WRB) : Free Stock Analysis Report iShares U.S. Insurance ETF (IAK): ETF Research Reports Invesco KBW Property & Casualty Insurance ETF (KBWP): ETF Research Reports Palomar Holdings, Inc. (PLMR) : Free Stock Analysis Report Oscar Health, Inc. (OSCR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
20-05-2025
- Automotive
- Yahoo
Is SPDR S&P Transportation ETF (XTN) a Strong ETF Right Now?
Designed to provide broad exposure to the Industrials ETFs category of the market, the SPDR S&P Transportation ETF (XTN) is a smart beta exchange traded fund launched on 01/26/2011. The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment. A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns. However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta. Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics. Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns. Because the fund has amassed over $200.99 million, this makes it one of the average sized ETFs in the Industrials ETFs. XTN is managed by State Street Global Advisors. Before fees and expenses, XTN seeks to match the performance of the S&P Transportation Select Industry Index. The S&P Transportation Select Industry Index represents the transportation segment of the S&P Total Market Index. Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio. Operating expenses on an annual basis are 0.35% for XTN, making it one of the least expensive products in the space. It has a 12-month trailing dividend yield of 0.99%. Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis. For XTN, it has heaviest allocation in the Industrials sector --about 100% of the portfolio. When you look at individual holdings, Avis Budget Group Inc (CAR) accounts for about 4.48% of the fund's total assets, followed by Uber Technologies Inc (UBER) and Skywest Inc (SKYW). The top 10 holdings account for about 31.17% of total assets under management. The ETF has lost about -8.90% so far this year and was up about 0.56% in the last one year (as of 05/20/2025). In the past 52-week period, it has traded between $62.77 and $95.17. The fund has a beta of 1.40 and standard deviation of 26.11% for the trailing three-year period, which makes XTN a high risk choice in this particular space. With about 45 holdings, it has more concentrated exposure than peers. SPDR S&P Transportation ETF is a reasonable option for investors seeking to outperform the Industrials ETFs segment of the market. However, there are other ETFs in the space which investors could consider. IShares U.S. Transportation ETF (IYT) tracks Dow Jones Transportation Average Index and the U.S. Global Jets ETF (JETS) tracks U.S. Global Jets Index. IShares U.S. Transportation ETF has $745.48 million in assets, U.S. Global Jets ETF has $850.10 million. IYT has an expense ratio of 0.39% and JETS charges 0.60%. Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Industrials ETFs. To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SPDR S&P Transportation ETF (XTN): ETF Research Reports Avis Budget Group, Inc. (CAR) : Free Stock Analysis Report SkyWest, Inc. (SKYW) : Free Stock Analysis Report iShares U.S. Transportation ETF (IYT): ETF Research Reports U.S. Global Jets ETF (JETS): ETF Research Reports Uber Technologies, Inc. (UBER) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
