The KRE ETF, which tracks the performance of regional banks in the United States, has seen a surge in recent weeks as stocks of PacWest, Comerica, and KeyCorp lead the way.
Investors have been keeping a close eye on the regional banking sector, as the industry has been showing signs of growth and stability in the wake of the COVID-19 pandemic. With interest rates remaining low and the economy slowly recovering, regional banks are well-positioned to benefit from increased lending activity and higher profits.
PacWest, Comerica, and KeyCorp are among the top holdings in the KRE ETF, and their strong performance has helped to drive the fund’s overall gains. PacWest, in particular, has been a standout performer, with its stock price rising more than 50% since the start of the year.
Investors are also optimistic about the prospects for regional banks in the coming months, as the Biden administration’s proposed infrastructure plan could provide a boost to the industry. The plan includes significant investments in transportation, broadband, and other infrastructure projects, which could create new lending opportunities for regional banks.
Overall, the KRE ETF has been a solid performer in 2021, with gains of more than 30% year-to-date. As the economy continues to recover and interest rates remain low, regional banks could be well-positioned to continue their upward trajectory, making the KRE ETF an attractive option for investors looking to capitalize on this trend.