Composition vs. Returns: Breaking Down the Structural Drift Between KBE and KRE

KRE (regional banking ETF) delivered stronger 1-year returns of 15.2% compared to KBE's 11.7%, but KBE showed better long-term resilience with a 33% 5-year return versus KRE's 14%. Both funds have identical 0.35% expense ratios and 2.3% dividend yields, but differ in composition—KRE focuses exclusively on regional banks while KBE includes major money-center banks, resulting in different risk-return profiles.