Better U.S. Bank ETF: State Street's KBE vs. First Trust's FTXO
State Street's KBE and First Trust's FTXO offer different approaches to U.S. banking sector exposure. KBE provides broader diversification across 107 holdings with a lower 0.35% expense ratio and higher 2.2% dividend yield, while FTXO concentrates on 50 large-cap banks with an 8% weighting in top holdings. Over five years, both delivered similar returns (~$1,330 per $1,000 invested), but KBE's lower costs and regional bank focus make it better suited for moderate rate-hike environments, whereas FTXO may outperform if the Fed aggressively raises rates.
