This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

ETF Close-Up: S&P Regional Banking

Stocks in this article: KRE

By David Gillie, Contributing Editor and subscriber to ETF Digest

NEW YORK ( ETF DIgest) -- Remember the day when you used to deposit your paycheck into your hometown bank?

(Notice the ashtrays at the teller windows.)

The teller recognized you and knew you by name. Her name was Helen, right? She went to school with your sister.

Believe it or not, these banks are still around. And doing quite well, I might add.

S&P Regional Banking ETF (KRE) holds many of these banks.

In the banking business, smaller is better. Regional banks are actually in the banking business. They make loans to small businesses, write mortgages to people who can afford to buy homes (and do the due diligence to ensure that) and their executives don't receive exorbitant salaries with multi-million dollar bonuses.

Unlike their behemoth brethren, they don't leverage their assets 40:1, they don't buy and sell high risk assets not even knowing what's included in them (mortgage-backed securities and Ponzi schemes); they don't have proprietary trading desks with a trunk line to the casino; they're not loaded to the gunnels with European junk bonds; and, most important of all, they didn't gamble away our money and then have to be bailed out with our money.

Unfortunately, as a high tide raises all boats, a low tide sinks all boats. Since 2009, anything in the financial sector has been considered toxic and this has been one of the worst performing sectors dragging these good banks down with it. Now that we're seeing a little relief in the U.S. economy and the media has quieted in Europe (at least for now), regional banks are the first in the financial sector to recover.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs