ETFMay 8, 2026

ETFriday: Six-Week Korea Streak and 372bp Bank Spreads at 12× Earnings

Top 5 Pixie Picks

This Week's Setup

Korea extends its top Pixie Rank to six straight weeks, now pricing at 17.8× earnings with a 127 basis-point spread to Treasuries, while regional banks trade at 12.4× and homebuilders at 14.9× despite offering yield spreads north of 230 basis points.

Fear & Greed sits at 68, elevated but not extreme, while S&P 500 CAPE remains at 38.9, a level that historically sets a high bar for cyclical re-rating.

The value zone this week clusters around financials and emerging markets, where earnings yields run 350+ basis points above the Treasury curve and drawdowns have cleared 10–16% of peak price.

Quick Scan

#	Ticker	One-line thesis
1	EWY	Korea at 18× with 127bp spread, six-week top rank
2	FRDM	Emerging markets at 16× with 173bp spread, 10% drawdown
3	XHB	Homebuilders at 15× with 237bp spread, 16% drawdown
4	CNRG	Clean power at 23× with minimal spread, 14% drawdown
5	KRE	Regional banks at 12× with 372bp spread, 14% drawdown
6	KBE	Broad banks at 13× with 357bp spread, 14% drawdown
7	DXJ	Japan hedged at 15× with 213bp spread, 7% drawdown
8	AVEM	Emerging markets value at 13× with 346bp spread, 7% drawdown

The 8 Names

1. iShares MSCI South Korea ETF (EWY)

3y annualized return: 7.58% | Life annualized return: 7.58% | 52w drawdown: -14.1%

Korea holds the top Pixie Rank for a sixth consecutive week, trading at 17.8× earnings with a 127 basis-point spread to Treasuries, a valuation that has delivered 7.6% annualized returns through a 14% drawdown.

24/7 Wall St. frames EWY alongside EWT and SOXX as one of three essential ETFs for semiconductor exposure, while Zacks highlights the Kospi crossing 7,000 for the first time and emerging-market ETF demand accelerating.

The fund has given back 14% from its 52-week high, and its one-year trend is effectively flat at 0.4%, which means buyers here are banking on multiple expansion or earnings acceleration from current levels.

2. Freedom 100 Emerging Markets ETF (FRDM)

3y annualized return: 15.27% | Life annualized return: 15.27% | 52w drawdown: -10.2%

FRDM trades at 16.4× earnings with a 173 basis-point yield spread to Treasuries, the widest in the emerging-market cohort this week, while delivering 15.3% annualized returns since inception.

The fund screens for political and economic freedom within emerging markets, which has historically reduced tail risk and supported the 15% annualized return profile even as the broader EM complex has lagged.

The one-year price trend is just 0.2%, which flags that recent performance has been sideways despite the attractive starting valuation; momentum is absent here even as the spread is wide.

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

3y annualized return: 13.54% | Life annualized return: 13.54% | 52w drawdown: -16.3%

XHB trades at 14.9× earnings with a 237 basis-point spread to Treasuries, the widest among homebuilder ETFs this year, while the fund is down 16% from its 52-week high and has delivered 13.5% annualized returns over its life.

MarketBeat reports D.R. Horton standing out among builders as Pulte and NVR sales decline, while Zacks runs two separate "Is XHB a Strong ETF Right Now?" pieces in the past week, suggesting increased retail attention to the sector.

The one-year trend is effectively flat at 0.1%, and the 16% drawdown places the fund in the strong-entry zone, but housing data has been mixed and the macro rate path remains uncertain.

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

3y annualized return: 18.37% | Life annualized return: 18.37% | 52w drawdown: -13.9%

CNRG has delivered 18.4% annualized returns since inception, the highest in this week's list, while trading at 22.5× earnings with a 0.8 basis-point spread to Treasuries, effectively pricing at the risk-free rate.

Zacks highlights energy security concerns driving clean-power ETF flows, with Iran war risk cited as a catalyst for renewable-energy shifts, while CNRG appears in multiple "ETFs to Gain" lists alongside ICLN, QCLN, and PBW.

The fund's earnings yield is 4.4%, just eight basis points above Treasuries, meaning you are paying for growth optionality rather than current cash-flow value; the 14% drawdown does not yet provide a material margin of safety.

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

3y annualized return: 8.55% | Life annualized return: 8.55% | 52w drawdown: -14.1%

KRE trades at 12.4× earnings with a 372 basis-point spread to Treasuries, the widest yield gap in the banking cohort, while the fund is down 14% from its 52-week high and offers an 8.1% earnings yield.

Zacks runs two separate "Is KRE a Strong ETF Right Now?" pieces in the past week, while MarketBeat notes PNC prepping for its best year, suggesting single-name catalysts are emerging within the regional bank basket.

The one-year trend is just 0.1%, and the 14% drawdown lands the fund in the moderate-dip zone, but regional banks remain exposed to commercial real-estate risk and deposit-cost pressure that could compress earnings if the cycle turns.

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

3y annualized return: 8.00% | Life annualized return: 8.00% | 52w drawdown: -13.9%

KBE trades at 12.6× earnings with a 357 basis-point spread to Treasuries, slightly tighter than KRE but still offering a 7.9% earnings yield, while the fund is down 14% from its 52-week high.

24/7 Wall St. calls the rate shift one of this year's strongest trades, while Barron's notes Morgan Stanley and Bank of America leading a sector comeback, even as the magazine asks whether banks are signaling a recession.

The one-year trend is just 0.1%, identical to KRE, and the 14% drawdown does not yet provide a deep entry point; you are buying into a sector that is pricing recession risk but not yet clearing it.

7. WisdomTree Japan Hedged Equity Fund (DXJ)

3y annualized return: 13.28% | Life annualized return: 13.28% | 52w drawdown: -7.0%

DXJ trades at 15.4× earnings with a 213 basis-point spread to Treasuries, the tightest drawdown in this week's list at just 7%, while delivering 13.3% annualized returns since inception.

Zacks highlights Japan inflation cooling for a fourth straight month, a macro tailwind for equity returns, while the fund appears in multiple "Time for Japan ETFs" pieces as currency-hedged exposure gains traction.

The 7% drawdown is mild, and the one-year trend is just 0.2%, which means you are not buying into a dislocated entry; the setup here is a macro bet on yen stability and Japanese earnings growth, not a deep-value opportunity.

8. Avantis Emerging Markets Equity ETF (AVEM)

3y annualized return: 11.09% | Life annualized return: 11.09% | 52w drawdown: -7.3%

AVEM trades at 12.8× earnings with a 346 basis-point spread to Treasuries, the second-widest in the emerging-market cohort, while the fund is down just 7% from its 52-week high.

24/7 Wall St. frames 2026 as the year to pick your emerging-market ETF carefully, while Zacks asks whether EM ETFs should play a bigger role in portfolios, both pieces suggesting active interest in the category.

The one-year trend is just 0.2%, and the 7% drawdown does not provide a material margin of safety; you are buying a valuation spread here, not a dislocation.

What to Watch

• Korea Kospi momentum: EWY has held the top Pixie Rank for six weeks, and any break above 7,000 on the index or semiconductor order data from Samsung or SK Hynix will test whether the 127bp spread can tighten further.

• Regional bank earnings: KRE and KBE both trade at 12–13× with 350+ bp spreads, and the next wave of earnings from PNC, Fifth Third, and KeyCorp will clarify whether commercial real-estate reserves are stabilizing or still building.

• Homebuilder sales data: XHB is down 16% with a 237bp spread, and the next round of monthly sales reports from D.R. Horton, Pulte, and NVR will determine whether the sector is bottoming or still deteriorating.

• Clean-power policy signals: CNRG trades at 22.5× with minimal spread, so any shift in renewable-energy subsidies, tariffs on solar imports, or grid-infrastructure spending will move the fund more than earnings revisions.

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