While KBE has lost around $52 million this year, the SPDR S&P Regional Banking ETF, ticker KRE, has added $414 million. However, regional lenders are expected to benefit less under Trump’s plans than the global banks that are held by KBE.
“The most reasonable answer for me is that people do not realize there are two SPDR bank ETFs,” Mercado said. “People may be going to the wrong ETF, but they don’t know it.”
This article was provided by Bloomberg News.