The State Street SPDR S&P Bank ETF (NYSEMKT:KBE) provides lower costs and higher yields, whereas the First Trust Nasdaq Bank ETF (NASDAQ:FTXO) offers a concentrated strategy that has delivered higher recent returns.
Both funds offer targeted exposure to the U.S. banking sector but employ distinct weighting methodologies
While one focuses on a concentrated group of high-liquidity stocks using a multi-factor approach, the other provides a much broader view of the industry through an equal-weighted strategy. This comparison examines how these structural differences impact return profiles and risk metrics. Snapshot (cost & size) With an expense ratio of 0.35%, the SPDR fund is the more affordable option, costing significantly less than the 0.60% charged by the First Trust fund.
While both ETFs carry a beta of 0.90, KBE features a higher dividend yield and larger assets under management (AUM), which could appeal to investors seeking deeper liquidity. Performance & risk comparison What’s inside State Street SPDR S&P Bank ETF (NYSEMKT:KBE) launched in 2005 and tracks an equal-weighted index with 101 holdings. This strategy captures the broad banking industry, including sub-sectors like regional banks and asset management companies.