JPMorgan (JPM) vs Regional Banks (KRE)
JPMorgan Chase trades near $310 per share with market cap $873.62 billion. KRE (SPDR S&P Regional Banking ETF) closed at $70.64 on April 20, 2026.
Also known as: JPMorgan (JPM) (STK_JPM, JPMorgan) · Regional Banks (KRE) (ETF_KRE, regional banks)
Why This Comparison Matters
JPMorgan Chase trades near $310 per share with market cap $873.62 billion. KRE (SPDR S&P Regional Banking ETF) closed at $70.64 on April 20, 2026. The JPM/KRE ratio is approximately 4.39. The pair captures the structural divergence between mega-banks (JPM, BAC, WFC, C) and regional banks (Truist, M&T, USBancorp, KeyCorp, Citizens, Regions, Comerica, Fifth Third). Mega-banks benefit from deposit flight to safety, trading and investment banking revenues, and scale economies; regional banks face commercial-real-estate concentration, deposit instability, and weaker capital ratios. Year-to-date 2026, JPM has gained 8 percent versus KRE down 3 percent (11 percentage point divergence). The pair captured the most extreme bank divergence in 2023 during the regional bank crisis when KRE fell 40 percent peak-to-trough versus JPM relatively stable.
JPM and KRE Composition
JPMorgan is the largest US bank by market cap ($873.62 billion) and assets ($4 trillion). The bank operates four major segments: Consumer and Community Banking ($74 billion annual revenue), Corporate and Investment Bank ($48 billion), Commercial Banking ($15 billion), Asset and Wealth Management ($20 billion).
KRE holds approximately 140 regional bank stocks with average market cap $4-8 billion per holding. Top holdings: Truist Financial (~3.5 percent), M&T Bank (~2.5 percent), Citizens Financial (~2 percent), Regions Financial (~2 percent), Fifth Third (~1.8 percent), Huntington Bancshares (~1.7 percent), KeyCorp (~1.5 percent), Comerica, Pinnacle Financial Partners, Webster Financial. KRE AUM is approximately $3 billion. Expense ratio 0.35 percent.
The asset-size differential is substantial. JPM at $4 trillion in assets versus KRE constituents averaging $30-100 billion in assets each. Combined KRE constituent assets approximately $2 trillion, half of JPM alone. The size differential drives material differences in business mix, regulatory framework, and risk profile.
The 2023 Regional Bank Crisis
March 2023 produced the most severe regional bank crisis since 2008. Silicon Valley Bank failed March 10, Signature Bank failed March 12, First Republic Bank failed May 1. Combined assets approximately $550 billion. The cascading failures triggered Federal Reserve emergency intervention with the Bank Term Funding Program (BTFP), which peaked at $170 billion in advances.
KRE fell 40 percent peak-to-trough during March-April 2023. JPM was relatively stable, falling only 7 percent during the same period. The 33 percentage point KRE-vs-JPM divergence over 60 days was one of the most extreme single-quarter pair-trade moves in financial-sector history.
The JPM-vs-KRE outperformance during 2023 captured a fundamental structural insight: regional banks face deposit instability and concentration risk that mega-banks do not. When stress emerges, deposits flee from regional banks to mega-banks, triggering self-reinforcing capital pressure on the regional banks that lose deposits. JPM gained approximately $50 billion in deposits during the March 2023 episode within 30 days.
Conditional Forward Response (Tail Events)
How Regional Banks (KRE) has historically behaved in the 5 sessions following a top-decile or bottom-decile daily move in JPMorgan (JPM). Computed from 1,281 aligned daily observations ending .
Following these triggers, Regional Banks (KRE) falls 0.57% on average over the next 5 sessions, versus an unconditional baseline of +0.16%. 129 qualifying events; Regional Banks (KRE) closed positive in 51% of them.
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Frequently Asked Questions
What are the current JPM and KRE levels?+
JPMorgan trades near $310 per share with market cap $873.62 billion as of April 21, 2026. KRE (SPDR S&P Regional Banking ETF) closed at $70.64 on April 20, 2026. The JPM/KRE ratio is approximately 4.39. The 12-month ratio range is 3.5-4.6, the 5-year range is 2.0-4.6 (current near peak). Year-to-date 2026, JPM gained 8 percent vs KRE -3 percent (11pp divergence). KRE AUM is approximately $3 billion, expense ratio 0.35 percent. KRE holds ~140 regional bank stocks with average market cap $4-8 billion per holding.
What's in KRE?+
KRE holds ~140 regional bank stocks. Top holdings: Truist Financial (~3.5%), M&T Bank (~2.5%), Citizens Financial (~2%), Regions Financial (~2%), Fifth Third (~1.8%), Huntington Bancshares (~1.7%), KeyCorp (~1.5%), Comerica, Pinnacle Financial Partners, Webster Financial. Average market cap $4-8 billion per holding. Combined KRE constituent assets ~$2 trillion (half of JPM alone). Most regional banks have CRE concentration of 25-35 percent of total loans (vs JPM ~4 percent), making KRE constituents far more exposed to commercial real estate stress.
What was the 2023 regional bank crisis?+
March 2023 produced the most severe regional bank crisis since 2008. SVB failed March 10, Signature Bank March 12, First Republic Bank May 1 (combined assets ~$550 billion). The cascading failures triggered Fed emergency intervention with the Bank Term Funding Program (BTFP) which peaked at $170 billion. KRE fell 40 percent peak-to-trough during March-April 2023. JPM was relatively stable, falling only 7 percent. The 33pp KRE-vs-JPM divergence over 60 days was one of the most extreme single-quarter pair-trade moves in financial-sector history. JPM gained ~$50 billion in deposits within 30 days during the March 2023 episode.
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Data sourced from FRED, CoinGecko, CBOE, and other providers. This page is for informational purposes only and does not constitute financial advice. Past performance does not guarantee future results.