ETFApril 24, 2026

ETFriday: Korea, Banks, and Clean Power All Price 132+ Basis Points Above Treasuries

Top 5 Pixie Picks

This Week's Setup

Korea keeps the top slot for a fourth straight week, now trading at 17.8× earnings with an earnings yield 132 basis points above Treasuries, while FRDM and AVEM show emerging-market stocks can be bought at mid-teens multiples or lower with 350+ bp spreads built in.

Banks cleared mid-April earnings with KRE and KBE holding 360–377 bp yield spreads, pricing a recession that regional balance sheets say isn't here yet.

Clean power landed back on the screen as geopolitical risk pushes energy policy toward renewable infrastructure; CNRG returned 18% annualized since inception while trading 13 bp above the risk-free rate.

Quick Scan

#	Ticker	One-line thesis
1	EWY	Korea at 17.8× earnings with 132 bp spread
2	FRDM	Emerging markets ex-autocracy at 16.4× with 178 bp cushion
3	CNRG	Clean power with 18% life return and Iran catalyst
4	XHB	Homebuilders at 14.9× earnings with 242 bp spread
5	KBE	Banks at 12.6× earnings with 362 bp spread
6	KRE	Regional banks pricing 377 bp spread to Treasuries
7	DXJ	Japan hedged equity at 15.4× with cooling inflation
8	AVEM	Emerging markets at 12.8× earnings with 351 bp spread

The 8 Names

1. iShares MSCI South Korea ETF (EWY)

3y annualized return: n/a | Life annualized return: 7.58% | 52w drawdown: -14.13%

The earnings yield sits at 5.62%, translating to a 132 basis-point spread over Treasuries, while the fund trades 14% below its 52-week high; JPMorgan calls this market the world's hottest and expects another 37% upside from here. Korea held Pixie Rank 1 for three consecutive weeks before this one, and the valuation case strengthens each session: you are buying the MSCI Korea basket at 17.78× trailing earnings, not the 38.93 CAPE multiple on U.S. equities.

DRAM revenue crossed $1 billion as Samsung and SK Hynix ride AI memory demand, and Barron's highlighted the world's hottest stock market thesis; the combination of memory-cycle tailwinds and sub-20 multiples creates entry points that developed-market indices cannot match. The fund returned 7.58% annualized since inception despite the current drawdown, and the trend over the past year is flat, which means you are not chasing momentum.

The 14% drawdown remains moderate, not extreme; if Samsung earnings disappoint or China trade tensions flare, the technical setup here can shift quickly. Korea's export dependence and chaebol concentration leave the ETF exposed to single-sector shocks that move the entire index in one session.

2. Freedom 100 Emerging Markets ETF (FRDM)

3y annualized return: n/a | Life annualized return: 15.27% | 52w drawdown: -10.16%

The earnings yield is 6.08%, producing a 178 basis-point spread to Treasuries; the fund screens out autocratic regimes and delivers emerging-market exposure at 16.44× earnings, matching Korea's valuation while diversifying away from single-country risk. FRDM returned 15.27% annualized since launch, a life return that exceeds both EWY and the S&P 500 over the same window, and the 10% drawdown sits in moderate-dip territory without reaching oversold levels.

The portfolio trades at a P/E of 16.44 with no dividend yield reported, which means the entire return comes from capital appreciation and earnings growth; the 178 bp yield spread is the second-widest on this week's screen after the regional banks. The one-year price trend is flat, up just 24 basis points, so you are not paying for a rally that already ran.

Emerging-market funds live and die by currency moves and capital-flow reversals; if the dollar rallies or risk appetite collapses, FRDM will reprice faster than domestic equity. The lack of a dividend cushion means downside protection comes entirely from valuation, not income.

3. State Street SPDR S&P Kensho Clean Power ETF (CNRG)

3y annualized return: n/a | Life annualized return: 18.37% | 52w drawdown: -13.86%

The fund returned 18.37% annualized since inception, the highest life return on this week's screen, and trades at 22.54× earnings with a 13 basis-point spread to Treasuries; the narrow spread reflects growth expectations baked into clean-power valuations, not a lack of earnings. The 14% drawdown creates a moderate entry point for investors who want exposure to renewable infrastructure without chasing the top.

Iran conflict coverage from Zacks positions energy disruption as a catalyst for renewable investment, and the fund tracks companies building solar, wind, and grid infrastructure; XHB and CNRG are the only two names on this screen with drawdowns above 13%, meaning they are coming off bigger corrections than the banks or EM funds. The one-year trend is up 32 basis points, a small positive slope that signals steady accumulation rather than momentum chasing.

The P/E of 22.54 is the highest multiple on this screen, and the earnings yield of 4.44% leaves only 13 bp of cushion above the risk-free rate; if Treasury yields rise or growth stocks reprice, CNRG will give back gains faster than the value-oriented funds above it. The geopolitical catalyst is real, but valuations assume policy support that may not arrive on the timeline the market expects.

4. State Street SPDR S&P Homebuilders ETF (XHB)

3y annualized return: n/a | Life annualized return: 13.54% | 52w drawdown: -16.26%

The earnings yield is 6.73%, the second-highest on the screen after AVEM, and the 242 basis-point spread to Treasuries is triple the cushion in clean power; XHB trades at 14.87× earnings, the lowest P/E among the non-bank ETFs this week. The 16.26% drawdown moves the fund into strong-entry territory, and the one-year trend is flat, up just 8 bp, which means you are buying near the bottom of the recent range.

Zacks coverage asks whether the spring selling season will boost homebuilding ETFs, and Zillow's partnership with Esusu to help renters build credit could expand the buyer pool over the next twelve months; the housing market "hasn't been normal since 2018" per Yahoo Finance, and that abnormality is now priced into mid-teens multiples with yield spreads that assume no recovery. The life return of 13.54% annualized since inception trails CNRG and FRDM but beats the broad S&P 500 over the same window.

The 16% drawdown is the deepest on this screen, and homebuilders are rate-sensitive plays; if mortgage rates stay elevated or the consumer weakens, the earnings yield advantage here evaporates as top-line growth stalls. The housing abnormality could mean structural margin compression, not a temporary dip.

5. State Street SPDR S&P Bank ETF (KBE)

3y annualized return: n/a | Life annualized return: 8.00% | 52w drawdown: -13.86%

The earnings yield is 7.93%, producing a 362 basis-point spread to Treasuries, and the fund trades at 12.62× earnings; KBE prices a recession that regional bank balance sheets are not confirming, and the 14% drawdown sits in moderate-dip territory. Morgan Stanley and Bank of America posted earnings that stabilized the sector, and Barron's called banks "the most important stocks to watch now," yet the market is still valuing the basket as if credit deterioration is imminent.

The one-year trend is flat, up 10 bp, and the life return of 8.00% annualized since inception is the lowest on this screen; that muted long-term performance reflects the sector's extended post-2008 re-rating and the regional banking stress in 2023. The current setup is not about growth; it is about buying earnings at 12.6× when the market is pricing in losses that have not materialized.

Bank ETFs are leveraged plays on credit quality and rate policy; if loan losses spike or the Fed pivots dovish, the earnings yield advantage compresses as NIM contracts. The regional banking stress of 2023 is not fully resolved, and deposit flight remains a tail risk that can reprice the entire sector in one session.

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6. State Street SPDR S&P Regional Banking ETF (KRE)

3y annualized return: n/a | Life annualized return: 8.55% | 52w drawdown: -14.07%

The earnings yield is 8.08%, the highest on this screen, and the 377 basis-point spread to Treasuries is wider than any other fund this week; KRE trades at 12.38× earnings, a half-turn cheaper than KBE, and the 14% drawdown creates entry room without extreme oversold signals. PNC posted guidance for its best year, and Zacks asks whether KRE is a strong ETF right now; the market is still pricing regional banks as if commercial real estate and deposit stress will accelerate, but the Q1 earnings season said otherwise.

Regional banks carry more commercial real estate exposure than the large-cap names in KBE, and the deposit base is less sticky; if office vacancies worsen or small-business loan demand collapses, the earnings yield here can compress faster than the broader bank index. The life return of 8.55% annualized since inception is only 55 bp better than KBE, which means the valuation discount comes with structural risk, not just cyclical pessimism.

7. WisdomTree Japan Hedged Equity Fund (DXJ)

3y annualized return: n/a | Life annualized return: 13.28% | 52w drawdown: -6.96%

The earnings yield is 6.48%, translating to a 218 basis-point spread to Treasuries, and the fund trades at 15.43× earnings; Japan inflation cooled for the fourth straight month, and the currency hedge removes yen risk while preserving equity upside. The 7% drawdown is the shallowest on this screen, and the one-year trend is up 19 bp, a modest positive slope that signals steady accumulation without momentum extension.

Zacks coverage highlights that inflation is cooling, which supports the Bank of Japan's cautious policy stance and reduces pressure on corporate margins; the Zacks Analyst Blog grouped DXJ with SPY, QQQ, CPER, and EWY, positioning it as a core international allocation. The life return of 13.28% annualized since inception matches XHB and trails only CNRG and FRDM among non-bank ETFs.

The shallow drawdown and positive one-year trend mean you are not buying distress; if Japan equities reprice on yen strength or domestic demand weakens, DXJ will give back gains without the valuation cushion present in Korea or EM funds. The currency hedge protects against yen depreciation but removes the tailwind if the yen strengthens, which is the macro bet some investors want in a Japan allocation.

8. Avantis Emerging Markets Equity ETF (AVEM)

3y annualized return: n/a | Life annualized return: 11.09% | 52w drawdown: -7.33%

The earnings yield is 7.82%, the second-highest on the screen after KRE, and the 351 basis-point spread to Treasuries matches the banks; AVEM trades at 12.79× earnings, cheaper than every fund on this list except the two bank ETFs. 24/7 Wall St. wrote that 2026 is the year to pick your emerging-market ETF carefully, and Zacks asks whether EM ETFs should play a bigger role in portfolios; the valuation case is simple—you are buying earnings at sub-13× multiples with a 350 bp spread, and the 7% drawdown is the second-shallowest this week.

The life return of 11.09% annualized since inception trails FRDM but beats both bank ETFs and matches the broader EM category; the one-year trend is up 16 bp, a small positive slope that confirms steady accumulation. AVEM screens for size, profitability, and value factors within emerging markets, which means the portfolio tilts toward established companies with earnings power, not speculative small-caps.

Emerging-market equity lives at the mercy of dollar strength and global risk appetite; the 7% drawdown is shallow, which means you are not buying distress, and if capital flows reverse or trade tensions escalate, the earnings yield advantage here will not stop the repricing. The lack of a dividend yield removes the income cushion that can stabilize returns during drawdowns.

What to Watch

May 7–9: FOMC meeting; any signal on rate-cut timing will reprice bank earnings yields and shift the relative appeal of Korea, Japan, and EM equity against domestic stocks.
May 15: U.S. retail sales and housing starts; homebuilder sentiment and consumer strength will move XHB and clarify whether the spring selling season thesis holds.
June 4: Japan GDP revision; if domestic demand confirms the inflation-cooling trend, DXJ's hedged exposure becomes more attractive as policy uncertainty fades.
Ongoing: Monitor Samsung and SK Hynix earnings guidance for DRAM pricing; any reset in memory-cycle expectations will reprice EWY's 132 bp yield spread and JPMorgan's 37% upside call.

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