KRE’s equal-weighting strategy means that the fund is more biased towards small-cap and mid-cap banks, but also encompasses single-stock-related factors that have less influence on the fund’s performance. This is what separates KRE from popular peer financial funds such as Financial Select Sector SPDR ETF (XLF), which is heavily dominated by large-cap companies.

As a result, KRE’s profile is often not as impacted by many factors that are known to drive performance of big Wall Street banks. With a sizable $3.86 billion in total assets and a substantial daily trading volume of $387.11 million, KRE is a popular and highly liquid fund. The fund has a reasonable expense ratio of 0.35% and a stable dividend yield of 1.48%.