What are regional bank ETFs?
Regional banks are lenders that focus on one part of the country rather than serving customers nationwide. They take deposits and make loans to local households and businesses. Regional bank ETFs own baskets of these banks' shares. Pinnacle Financial Partners, Citizens Financial Group, M&T Bank and Regions Financial are each held by three of the four funds, which covers every fund that owns stocks directly. Webster Financial, Cullen/Frost Bankers and UMB Financial each appear in two.
The funds differ sharply. KRE and IAT are ordinary index funds, which aim to match a set list of stocks rather than relying on a manager's picks. KRE, from State Street's SPDR line, tracks an S&P index of US regional banks and spreads its money across 161 stocks, with just 13.6% in its top ten. IAT, from iShares, holds 31 stocks and puts 69.3% in its top ten, led by PNC Financial Services at 14.9% and U.S. Bancorp at 14.2%.
The other two are short-term trading tools. DPST, from Direxion, is leveraged, meaning it magnifies an index's moves: it seeks three times the daily return of a regional bank index. SKRE, from Tuttle Capital Management, is a leveraged inverse fund: it seeks twice the opposite of KRE's daily return, so it gains when KRE falls. Both aim to hit their targets for a single day only.
Costs are measured by the expense ratio, the yearly fee taken as a share of your investment. KRE is the lowest at 0.35%, followed by IAT at 0.37%. The trading tools cost more: 0.75% for SKRE and 0.92% for DPST, the highest. With only four funds, all the money sits in this small group, and most of it in one: as of October 27, 2026, KRE held about $4.7 billion of roughly $5.8 billion.
Regional bank ETF holdings: the stocks most funds own
The stocks that show up most often among the largest positions of the 4 biggest regional bank ETFs with holdings reports, from their latest N-PORT filings.
| Stock | Funds holding it | Typical weight |
|---|---|---|
| Pinnacle Financial Partners Inc | 3 of 4 | 1.37% |
| Citizens Financial Group Inc | 3 of 4 | 1.36% |
| M&T Bank Corp | 3 of 4 | 1.34% |
| Regions Financial Corp | 3 of 4 | 1.34% |
| Webster Financial Corp | 2 of 4 | 1.34% |
| Cullen/Frost Bankers Inc | 2 of 4 | 0.97% |
| UMB Financial Corp | 2 of 4 | 0.93% |
| Old National Bancorp/IN | 2 of 4 | 0.92% |
| Commerce Bancshares Inc/MO | 2 of 4 | 0.92% |
| Atlantic Union Bankshares Corp | 2 of 4 | 0.92% |
| Associated Banc-Corp | 2 of 4 | 0.91% |
Typical weight is the median share of each fund’s assets in the stock, among the funds that hold it in their 25 largest positions.
The largest regional bank ETFs, side by side
Swipe the table to see all 2 funds.
| KRE | IAT | |
|---|---|---|
| Net assets | $4.74B | $656.0M |
| Expense ratio | 0.35% | 0.37% |
| Holdings | 161 | 31 |
| In the 10 largest | 13.57% | 69.28% |
| Biggest holding | Pinnacle Financial Partners Inc (1.37%) | The Pnc Financial Services Group, Inc. (14.94%) |
| Yield | 2.22% | 2.74% |
| 1-year return | +21.5% | +22.9% |
| 3 years, a year | +26.5% | +28.5% |
| 5 years, a year | +3.5% | +2.0% |
| Worst drop, past year | -14.9% | -17.5% |
| Launched | 2006 | 2006 |
The largest ordinary funds by net assets (leveraged and inverse funds are listed further down). Holdings from each fund’s latest N-PORT report; returns include reinvested distributions, as of Oct 27, 2026.
Head to head
KRE vs IAT
KRE spreads its money across 161 regional banks. Its largest holding, Pinnacle Financial Partners, is just 1.37%, and the top ten total 13.57%. IAT holds 31 stocks and puts 69.28% in its top ten, led by PNC Financial Services at 14.94%. The two share 26 stocks, worth 30.9% of assets. KRE charges 0.35% a year and IAT 0.37%. Over the year to October 27, 2026, IAT returned 22.9% and KRE 21.5%, but IAT's biggest fall from a peak was deeper: 17.5% versus 14.9%. KRE may suit investors who want breadth; IAT, those comfortable leaning on a few big names.
KRE vs DPST
DPST is a leveraged fund from Direxion: it seeks three times the daily return of a regional bank index. Like KRE, it holds a broad list, 159 banks. It charges 0.92% a year, against KRE's 0.35%. Over the year to October 27, 2026, DPST gained 44% and KRE 21.5%. But DPST's volatility, a measure of how widely returns swing, was 62.6% against 20.6%, and its worst fall from a peak was 40.4% against 14.9%. Over five years, DPST lost money while KRE gained. KRE may suit long-term holders; DPST is built for short-term traders.
KRE vs SKRE
SKRE, from Tuttle Capital Management, is an inverse fund: it seeks twice the opposite of KRE's daily return, so each day it aims to move about twice as far as KRE, in the other direction. It holds no stocks directly. It charges 0.75% a year, against KRE's 0.35%, and had $5.4 million in assets against KRE's $4.7 billion. Over the year to October 27, 2026, KRE gained 21.5% while SKRE lost 37.7%, and SKRE's worst fall from a peak was 49.5%. SKRE is designed for traders hedging or betting against regional banks over short periods.
How much do the largest regional bank ETFs overlap?
Owning two funds that hold the same stocks adds little diversification. Overlap here is the share of assets two funds have in common: for each stock both own, the smaller of its two weights, added up.
From each fund’s full holdings in its latest N-PORT report.
How have regional bank ETFs performed?
The five largest ordinary funds: growth from the start of the range, distributions reinvested. The dashed gray line is the S&P 500 (SPY).
How regional bank ETFs did in past market crashes
| Fund | 2008 crash | 2020 crash | 2022 drop |
|---|---|---|---|
| KRE | -66.0% | -49.1% | -15.7% |
| IAT | -73.7% | -49.1% | -23.3% |
| S&P 500 (SPY) | -55.2% | -33.7% | -24.5% |
Total return from the stock market’s peak to its low in each fall, distributions reinvested.
What drives regional bank ETFs?
Regional banks earn most of their money from net interest income: the gap between what they collect on loans and bonds and what they pay depositors. That makes interest rates a major driver. Higher rates can widen that gap, but they also cut the value of bonds banks already own and can push savers to move deposits to higher-paying accounts. Loan demand and loan losses track the local economy, so recessions hurt. Fees, called noninterest income, and regulation, such as rules on how much capital banks must hold, also shape profits. Because banks depend on depositor confidence, fear about one lender can drag down the whole group.
In big market downturns, these funds have often fallen harder than the broad market. In the 2008 financial crisis, KRE fell 66% and IAT 73.7%, against 55.2% for the S&P 500. In the 2020 COVID crash, both fell 49.1%, versus 33.7% for the S&P 500. The 2022 bear market was different: KRE fell 15.7%, less than the S&P 500's 24.5%, and IAT fell 23.3%. Leveraged DPST multiplies daily moves, so its swings are far larger.
Regional bank ETFs with the lowest expense ratios
| # | Fund | Expense ratio | On $10,000 | Net assets |
|---|---|---|---|---|
| 1 | KRE SPDR S&P Regional Banking ETF | 0.35% | $35 a year | $4.74B |
| 2 | IAT iShares U.S. Regional Banks ETF | 0.37% | $37 a year | $656.0M |
Ordinary funds with at least $10 million in net assets. The median ordinary regional bank ETF charges 0.35% a year; leveraged and inverse funds usually charge more.
Do regional bank ETFs pay dividends?
2 of the 2 ordinary regional bank ETFs with a page here paid distributions over the last 12 months, with a median yield of 2.22%.
| Highest yields | Yield | Net assets |
|---|---|---|
| IAT iShares U.S. Regional Banks ETF | 2.74% | $656.0M |
| KRE SPDR S&P Regional Banking ETF | 2.22% | $4.74B |
Distributions over the last 12 months divided by the price; funds with at least $25 million in net assets.
How to choose a regional bank ETF
- Cost: a narrow gap at the low end. KRE charges 0.35% a year and IAT 0.37%, so fees barely separate the two ordinary funds. The leveraged and inverse funds cost more: DPST charges 0.92% and SKRE 0.75%.
- Many banks or a few big positions. Both track indexes but weight banks very differently. KRE holds 161, none above 1.37%. IAT holds 31, with 69.28% in its top ten and PNC Financial Services alone at 14.94%. Trouble at one big holding hits IAT harder.
- How much KRE and IAT overlap. The two share 26 stocks, making up 30.9% of assets, so most of IAT's 31 holdings also appear in KRE, but at very different weights. Both hold only US regional banks, so neither adds foreign lenders.
- Income: IAT's yield runs higher. As of October 27, 2026, IAT yielded 2.74% and KRE 2.22%. Yield is yearly income as a share of the price. IAT's higher figure depends more on a few banks' payouts.
- Fund size and trading costs. KRE, at about $4.7 billion, dwarfs IAT's $656 million. Bigger funds often trade with narrower bid-ask spreads, the gap between prices traders pay and receive. Very small funds like SKRE, at $5.4 million, are more likely to close.
- Leveraged and inverse funds behave differently. DPST seeks 3x a regional bank index's daily move; SKRE, twice the opposite of KRE's. Because they reset daily, longer-run results can stray far from the multiple: over five years to October 27, 2026, DPST lost money while KRE gained.
What are the risks of regional bank ETFs?
- A few banks dominate IAT. IAT puts 69.28% of its money in ten stocks, with PNC Financial Services at 14.94% and U.S. Bancorp at 14.16%. Trouble at either bank would hit IAT far harder than KRE, where no stock tops 1.37%.
- One industry, shared pressures. Every fund here rides on US regional banks. Pinnacle Financial Partners, Citizens Financial Group, M&T Bank and Regions Financial sit in all three stock-holding funds, so splitting money among them does little to soften an industry-wide shock.
- Deep falls in market crises. Bank stocks can fall hard when loan losses loom. KRE dropped 66% and IAT 73.7% in the 2008 financial crisis, versus 55.2% for the S&P 500, and both lost 49.1% in the 2020 COVID crash, versus 33.7%.
- Interest rates cut both ways. Higher rates can lift what banks earn on loans but shrink the value of bonds they hold and push savers to move deposits elsewhere. Falling rates can squeeze lending margins. Either shift can move every fund here.
- Leveraged and inverse funds can lose fast. DPST and SKRE reset daily, so their returns can erode in choppy markets. Over the year to October 27, 2026, DPST's volatility was 62.6% versus KRE's 20.6%, and SKRE fell as much as 49.5%.
Leveraged and inverse regional bank ETFs (2x and 3x)
These funds aim for a multiple, or the opposite, of one day’s return, and reset every day. Held for longer than a day, their results can drift far from that multiple, especially when prices swing. They are trading tools, not long-term holdings. Why leveraged ETFs decay →
List of all regional bank ETFs, by size
| # | Fund | Net assets | Cost | Yield | YTD | 1 yr | 5 yr |
|---|---|---|---|---|---|---|---|
| 1 | KRE SPDR S&P Regional Banking ETF | $4.74B | 0.35% | 2.22% | +13.9% | +21.5% | +3.5% |
| 2 | IAT iShares U.S. Regional Banks ETF | $656.0M | 0.37% | 2.74% | +10.5% | +22.9% | +2.0% |
| 3 | DPST Direxion Daily Regional Banks Bull 3X Shares Leveraged | $427.1M | 0.92% | 1.71% | +23.4% | +44.0% | -22.6% |
| 4 | SKRE Tuttle Capital Daily 2X Inverse Regional Banks ETF Inverse | $5.4M | 0.75% | 0.31% | -28.3% | -37.7% | — |
Questions investors ask about regional bank ETFs
What is the largest regional bank ETF?
KRE, the SPDR S&P Regional Banking ETF from State Street, is by far the largest, with about $4.7 billion in net assets as of October 27, 2026. That is most of the roughly $5.8 billion in all four regional bank ETFs. Next come IAT from iShares at $656 million, DPST from Direxion at $427 million and SKRE from Tuttle Capital at $5.4 million. KRE launched in June 2006.
What is the cheapest regional bank ETF?
KRE has the lowest expense ratio, the yearly fee taken as a share of your investment, at 0.35%. IAT is close behind at 0.37%. The trading-oriented funds cost more: SKRE charges 0.75% and DPST 0.92%. The small fee gap between KRE and IAT may matter less than how differently they spread their money: KRE across 161 banks, IAT with most in its top ten.
KRE vs IAT: what's the difference?
The main difference is breadth. KRE holds 161 regional banks, with no position above 1.37% and 13.57% in its top ten. IAT holds 31, with 69.28% in its top ten, led by PNC Financial Services at 14.94% and U.S. Bancorp at 14.16%. They share 26 stocks worth 30.9% of assets. KRE costs 0.35% and IAT 0.37%. Over the year to October 27, 2026, IAT returned 22.9% and KRE 21.5%. IAT yielded 2.74% against KRE's 2.22%.
Do regional bank ETFs pay dividends?
Yes. KRE and IAT, the two ordinary (unleveraged) funds, both pay dividends. As of October 27, 2026, IAT yielded 2.74% and KRE 2.22%. A yield is the fund's yearly income as a share of its price. The money comes from dividends paid by the banks each fund owns, and banks can cut dividends when profits fall. DPST and SKRE are built for short-term trading, not income.
Which regional bank ETFs hold M&T Bank?
M&T Bank (MTB) is held by three of the four regional bank ETFs: KRE, IAT and DPST, which are all the funds that own stocks directly. Its median weight across them is 1.34%. The same three funds also hold Pinnacle Financial Partners, Citizens Financial Group and Regions Financial. SKRE holds no stocks; it seeks twice the opposite of KRE's daily return.
How many regional bank ETFs are there?
There are four US-listed regional bank ETFs. Two are ordinary index funds: KRE from State Street's SPDR line and IAT from iShares, both launched in 2006. The other two are trading tools: DPST from Direxion, a 3x leveraged fund launched in 2015, and SKRE from Tuttle Capital, a 2x inverse fund launched in January 2024. Together they held about $5.8 billion as of October 27, 2026.
Is there a 3x leveraged or short regional bank ETF?
Yes. DPST, from Direxion, seeks three times the daily return of a regional bank index. SKRE, from Tuttle Capital, is an inverse fund that seeks twice the opposite of KRE's daily return, so it gains when regional banks fall. Both aim to hit those targets for one day only. Because they reset daily, results over months can stray far from the multiple: over five years to October 27, 2026, DPST lost money while KRE gained. That makes them trading tools rather than long-term holdings.
Does Vanguard have a regional bank ETF?
No. None of the four US-listed regional bank ETFs comes from Vanguard. The issuers are State Street's SPDR line (KRE), iShares (IAT), Direxion (DPST) and Tuttle Capital Management (SKRE). For an ordinary, unleveraged fund, the options are KRE, which spreads its money across 161 banks for 0.35% a year, and IAT, which holds 31 and charges 0.37%.
Is there a Vanguard, Fidelity or Schwab regional bank ETF?
No. None of the three offers a regional bank ETF. The largest regional bank ETFs come from SPDR (State Street) (KRE) and iShares (IAT), and customers of all three firms can buy other companies’ ETFs in their brokerage accounts. For a broader fund, VFH (Vanguard Financials ETF) and FNCL (Fidelity MSCI Financials Index ETF) are covered in our financials ETF guide.
