Statistics · 2026 · ETFs
Financial ETF Statistics (2026)
KRE was the best-performing financial ETF over the past year, returning 14.4% with dividends reinvested, as of October 2, 2026. IAI returned 0.6%. The S&P 500 fund SPY returned 16.7%. Regional bank funds and broad financial funds carried different risk, so match the fund to the exposure you want.
Key takeaways
- KRE returned 14.4% over the past year and IAI returned 0.6%, a gap of 13.8 points.
- Over five years, 0 of the 5 financial funds beat SPY’s 13.9% a year, and the best returned 12.8%.
- Expense ratios run from 0.08% for XLF to 0.37% for IAI, or $8 to $37 per $10,000 a year.
- The 2 bank funds had median volatility of 26.8%, against 18.5% for the 2 broad financial funds.
- KRE fell 46.0% from peak to trough on month-end prices (lows within a month are not captured), against 23.9% for SPY.
- The FDIC reported $90.1 billion of net income for insured institutions in the second quarter of 2026.
Which financial ETFs performed best?
KRE led the group over one year at 14.4% with dividends reinvested, and KBE followed at 10.8%. Over five years the leader was IAI at 12.8% a year, and KRE ranked last at 3.7%. Leadership depends on the window you measure.
Each return runs from a month-end close to the October 2, 2026 price and is annualized over the actual days: the one-year figure covers September 30, 2025 to October 2, 2026, so it will not match an issuer's month-end one-year return.
1. One-year gap: 13.8 percentage points
KRE returned 14.4% over the past year and IAI returned 0.6% (WealthyBud data · 5 financial funds, total return · October 2, 2026). All 5 funds have 121 complete month-end prices. By category, KBE and KRE hold banks, VFH and XLF hold the whole financial sector, and IAI holds broker-dealers and exchanges.
2. IAI led the three-year run at 26.0% a year
IAI compounded at 26.0% a year over three years, ahead of KBE at 23.5%. XLF came last at 19.0%, a 6.9-point spread (WealthyBud data · 3-yr annualized total return · October 2, 2026).
3. Five-year spread: 9.1 points a year
IAI returned 12.8% a year and KRE returned 3.7% a year. Over ten years the range ran from 8.0% for KRE to 17.4% for IAI (WealthyBud data · 5- and 10-yr annualized total return · October 2, 2026).
| Ticker | Fund | Expense ratio | 1-yr total return | 5-yr total return (ann.) | Volatility (ann.) | Trailing yield |
|---|---|---|---|---|---|---|
| IAI | iShares U.S. Broker-Dealers & Securities Exchanges ETF | 0.37% | 0.6% | 12.8% | 21.8% | 1.21% |
| KBE | State Street SPDR S&P Bank ETF | 0.35% | 10.8% | 6.9% | 25.6% | 2.29% |
| KRE | State Street SPDR S&P Regional Banking ETF | 0.35% | 14.4% | 3.7% | 27.9% | 2.28% |
| VFH | Vanguard Financials ETF | 0.09% | 1.2% | 9.3% | 18.9% | 1.80% |
| XLF | State Street Financial Select Sector SPDR ETF | 0.08% | 0.9% | 9.2% | 18.1% | 1.54% |
| SPY | State Street SPDR S&P 500 ETF Trust | 0.0945% | 16.7% | 13.9% | 15.7% | 0.99% |
How much do financial ETFs cost?
Expense ratios range from 0.08% for XLF to 0.37% for IAI, with a median of 0.35%. On $10,000 that is $8 to $37 a year. The S&P 500 fund SPY charges 0.0945%. The 2 bank funds’ median ratio is 0.35% against 0.085% for the 2 broad funds.
4. XLF costs 0.08% and IAI costs 0.37%
The cheapest financial fund is XLF, followed by VFH at 0.09% and KBE at 0.35%. The most expensive is IAI, a 4.6-fold difference, or $29 more a year per $10,000 (WealthyBud data · issuer-verified expense ratios · October 2, 2026).
5. Median bank-fund fee is 0.35%, median broad fee is 0.085%
The 2 bank funds, KBE and KRE, charge a median 0.35%. The 2 broad funds, VFH and XLF, charge a median 0.085% (WealthyBud data · medians by fund type · October 2, 2026).
6. State Street lists a 0.08% gross expense ratio for XLF
The fund page says the gross expense ratio is 0.08%, meaning before any fee waivers, and lists $50.02 billion in assets as of October 1, 2026, per the State Street XLF page. KRE holds $3.64 billion per its page, and KBE holds $1.50 billion per its page.
Compare major ETFs by fees and returns
How volatile are financial ETFs?
KRE was the most volatile financial fund, with annualized volatility of 27.9%, against 18.1% for XLF. KRE had the deepest drawdown at 46.0%, and IAI the shallowest at 26.8% (month-end prices; lows within a month are not captured). Volatility measures monthly swings, while drawdown measures the worst fall from a peak.
7. KRE swung most: 27.9% annualized
KRE had the highest volatility, followed by KBE at 25.6%. XLF was the calmest at 18.1%, then VFH at 18.9%. Volatility is the annualized standard deviation of the last 60 complete monthly returns through September 30, 2026 (WealthyBud data · monthly returns per fund · October 2, 2026).
8. KRE fell 46.0% peak to trough on month-end prices
KRE had the deepest drawdown, KBE next at 43.6%. IAI fell the least, at 26.8%. Drawdown window: 121 month-end prices from September 30, 2016 to September 30, 2026 plus the October 2, 2026 price; lows within a month are not captured and the dataset does not record when each low occurred (WealthyBud data · max drawdown · October 2, 2026).
How do financial ETFs compare with the S&P 500?
Over five years, 0 of 5 financial funds beat the S&P 500 fund SPY, which returned 13.9% a year. Over one year 0 beat it, and over three years 2 did. Over ten years 1 did. Results change with the window measured.
9. 0 of 5 funds beat the S&P 500 over five years
SPY returned 13.9% a year. The best financial fund, IAI, returned 12.8%, a gap of 1.1 points. The widest gap was 10.2 points (WealthyBud data · 5-yr annualized total return vs SPY · October 2, 2026).
10. 0 of 5 beat the index over one year, 2 over three
SPY returned 16.7% over one year and 23.1% a year over three. No fund beat it over one year (WealthyBud data · 1- and 3-yr total return vs SPY · October 2, 2026).
11. Ten-year record: IAI 17.4% a year vs 15.3% for SPY
Over ten years, 1 of 5 financial funds beat the index. IAI was the best at 17.4% a year and KRE the weakest at 8.0% (WealthyBud data · 10-yr annualized total return · October 2, 2026).
12. 0 of 5 funds were less volatile than the index
SPY measured 15.7%. No financial fund came in below it, and 5 of 5 funds fell further than 23.9% in drawdown (month-end prices; lows within a month are not captured) (WealthyBud data · volatility and drawdown vs SPY · October 2, 2026).
How did regional bank ETFs fare versus broad financial ETFs?
KRE, the regional bank fund, returned 3.7% a year over five years, behind the broad sector fund XLF at 9.2%. KRE also fell 46.0% at its worst, against 31.8% for XLF (month-end prices; lows within a month are not captured). Regional banks showed more risk than the diversified funds.
13. KRE fell 46.0% at its worst, 14.2 points more than XLF, on month-end prices
KRE had a worst drawdown of 46.0% and KBE had 43.6%, against 31.8% for XLF. The bank funds’ median fall was 44.8%, 1.4 times the broad funds’ 32.4%. The dataset does not date the troughs, and lows within a month are not captured (WealthyBud data · max drawdown, month-end prices · October 2, 2026).
14. Bank funds were 1.45 times as volatile as broad financial funds
KRE measured 27.9% and KBE measured 25.6%, a median of 26.8%. The broad funds XLF and VFH measured 18.1% and 18.9%, a median of 18.5%; KRE sits 9.9 points above XLF (WealthyBud data · annualized volatility · October 2, 2026).
15. Median one-year return: bank funds 12.6%, broad funds 1.1%
Median returns for the bank funds were 12.6% over one year, 23.0% a year over three, 5.3% over five and 8.7% over ten. The broad funds returned 1.1%, 19.3%, 9.2% and 12.6%. Two funds per group is a small sample, so read these as descriptions (WealthyBud data · medians by fund type, dividends reinvested · October 2, 2026).
16. FDIC: insured institutions earned $90.1 billion in the second quarter of 2026
The FDIC reported that 4,238 insured commercial banks and savings institutions had a return on assets of 1.37 percent and aggregate net income of $90.1 billion in second quarter 2026, per its Quarterly Banking Profile release of August 25, 2026. That covers every FDIC-insured institution, not only the funds’ holdings.
17. FDIC lists 5 bank failures in 2023 and 2 in 2025
The FDIC’s failed bank list, which covers banks that failed since October 1, 2000, shows 5 closings dated in 2023 and 2 in 2025, 3 fewer. Counts are WealthyBud’s tally of the list’s closing dates as the page read on October 2, 2026.
- The FDIC list shows 5 bank failures with closing dates in 2023.
- The FDIC list shows 2 bank failures with closing dates in 2025.
- The FDIC list shows 6 failures so far in 2026, the latest being Nano Banc, Irvine, California, on September 25, 2026.
| Group | Expense ratio | 1-yr return | 3-yr return (ann.) | 5-yr return (ann.) | Volatility | Worst drawdown (month-end) |
|---|---|---|---|---|---|---|
| Bank funds (KBE and KRE) | 0.35% | 12.6% | 23.0% | 5.3% | 26.8% | 44.8% |
| Broad financial (VFH and XLF) | 0.085% | 1.1% | 19.3% | 9.2% | 18.5% | 32.4% |
What do financial ETFs pay?
KBE and KRE were nearly tied for the highest trailing yield, at 2.29% and 2.28%, and IAI paid the lowest at 1.21%. The S&P 500 fund SPY yielded 0.99%. Trailing yield divides the last 12 months of dividends by the current price. The 2 bank funds paid a median 2.28%, against 1.67% for the 2 broad funds.
18. KBE yields 2.29%; IAI yields 1.21%
A $10,000 position in KBE paid about $229 over the last 12 months, against about $121 for IAI (WealthyBud data · trailing-12-month distributions · October 2, 2026).
19. 5 of 5 funds out-yield the S&P 500 fund
SPY yielded 0.99%. KBE, KRE, VFH, XLF, and IAI paid more (WealthyBud data · trailing yield vs SPY · October 2, 2026).
What this means for investors
Decide between broad and bank-only exposure first. The 2 broad funds, XLF and VFH, differ by 0.01 percentage points in cost, so a cheaper one such as XLF at 0.08% saves money without changing the exposure much.
Size regional banks for the drop. KRE fell 46.0% at its worst on month-end prices (lows within a month are not captured). Hold only what you can leave alone through a fall that size.
Check your overlap. XLF is also one of the funds covered in our sector ETF statistics, and many S&P 500 funds already hold financials. For company-level data, see financial stock statistics, and for income-focused funds see dividend growth ETF statistics.
Past returns are not forecasts. The figures above describe history only.
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