Investors seeking momentum may have SPDR S&P Regional Banking ETF (CO:KRE) on radar now. The fund recently hit a new 52-week high. Shares of KRE are up approximately 30.8% from their 52-week low of $49.31/share.
But could there be more gains ahead for this ETF? Let’s take a look at the fund and the near-term outlook to get a better idea of where it might be headed.
KRE in Focus
KRE focuses on providing exposure to the regional banking space of the U.S. equity markets. The fund’s top three holdings are Comerica Incorporated (NYSE:CMA) , Popular Inc. (NASDAQ:BPOP) and Regions Financial Corporation (NYSE:RF) with 2.6% allocation each (as of Mar 6, 2018). The fund charges 35 basis points in fee per year and has AUM of $5.2 billion (see all Financials ETFs here).
Why the move?
The Senate is expected to take up the issue of deregulation among banks and adjust the size at which banks are subject to certain regulatory measures, driving regional banking stocks higher. This move is an attempt to exempt smaller banks from some requirements and regulatory scrutiny for loans, mortgages etc. The bill aims to change some parts of the Dodd-Frank act written after the 2008 crisis. The bill is likely to pass, as it has enough support from the Republicans and Democrats to clear the 60-vote threshold.
More Gains Ahead?
KRE has a weighted alpha of 19.10. Moreover, the fund has a Zacks ETF Rank #1 (Strong Buy) with a High risk outlook. So, there is a promising outlook ahead for those who want to ride this surging ETF a shade further.
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Comerica Incorporated (CMA): Free Stock Analysis Report
Regions Financial Corporation (RF): Free Stock Analysis Report
Popular, Inc. (BPOP): Free Stock Analysis Report
SPDR-KBW REG BK (KRE): ETF Research Reports
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Zacks Investment Research