Overview of KBE
The SPDR S&P Bank ETF (KBE) seeks to track the returns of the S&P Banks Select Industry Index. It has a market capitalization of $2.3 billion as of March 24, 2016. Its trading volume is $4.1 billion shares, making it the second-most heavily traded financial ETF after XLF.
The fund invests in a portfolio of publicly traded money centers and leading regional banks. Approximately 80% of its holdings are concentrated in regional banks. Its largest holdings are Bank of the Ozarks (OZRK), Western Alliance Bancorporation (WAL), Cullen/Frost Bankers (CFR), First Niagara Financial Group (FNF), and Fulton Financial (FULT). These stocks have weights of 1.9%, 1.9%, 1.8%, 1.8%, and 1.8%, respectively, in KBE.
Moving average analysis
On March 24, 2016, KBE closed at $30.43, below its 100-day moving average of $31.99 but above its 50-day and 20-day moving averages of $29.28 and $30.36, respectively.
The chart above shows that KBE crossed above its 50-day moving average on March 2. However, it’s approaching its 20-day moving average. In the event that KBE crosses below this moving average, it could become negative.
The 14-day relative strength index (or RSI) for KBE is 52.9 as of March 24, 2016. This suggests that the ETF is far from oversold levels, but that it may be considered undervalued.[1. An RSI figure of below 30 is an indication of an oversold stock, while an RSI of above 70 denotes an overbought stock.]