ETF Talk

Regional Bank Fund Offers Nationwide Potential

Investors looking at the financial sector with a discerning eye these days may be wondering whether it is a good idea to invest in banks that still have some growth potential. For investors pondering just such a question, the SPDR S&P Regional Banking ETF (KRE) removes the uncertainty of which specific ones to invest in by granting exposure to a cluster of regional banks in one single investment.

Regional banks are usually smaller companies than national banks, which can mean that they have more room to grow and expand while still providing strong profits for shareholders. For example, one holding in this fund that pursues an “expansion” strategy is BB&T Corporation (BBT), which recently acquired financial services corporation National Penn for $1.8 billion dollars.

According to Seeking Alpha, BB&T also is one of the banks that has reached a new high in this market cycle. Alternatively, CIT Group (CIT) is the fund’s biggest holding and is up by more than 40% in the last 12 months.

Click here to read the full article on stockinvestor.com.


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