IVV vs KBE
iShares Core S&P 500 ETF vs State Street SPDR S&P Bank ETF
Quick Verdict
IVV has a lower expense ratio. IVV delivered stronger 1-year returns. IVV offers more diversification with 508 holdings.
Side-by-Side Comparison
| Metric | IVV | KBE | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.35% | |
| AUM | $886.7B | $1.6B | |
| Dividend Yield | 1.10% | 2.11% | |
| Holdings | 508 | 105 | |
| YTD Return | +12.92% | +12.10% | |
| 1Y Return | +21.22% | +14.63% | |
| 3Y Return (annualized) | +20.95% | +22.45% | |
| 5Y Return (annualized) | +12.76% | +8.21% | |
| Volatility (annualized) | 15.1% | 26.7% | |
| Max Drawdown | -56.5% | -84.6% | |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | May 15, 2000 | Nov 8, 2005 |
IVV vs KBE Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and State Street SPDR S&P Bank ETF (KBE) is a ETF from State Street Investment Management. Over the past year IVV returned +21.22% while KBE returned +14.63%. Year to date, IVV is up 12.92% versus a gain of 12.10% for KBE.
Over three years, IVV compounded at +20.95% per year against +22.45% for KBE; over five years the annualized figures are +12.76% and +8.21% respectively. Across the full 21-year window we track, IVV has the edge at +7.00% annualized vs +2.06%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
KBE has been the more volatile fund, with annualized monthly volatility of 26.7% compared with 15.1% for IVV. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -56.5% for IVV and -84.6% for KBE. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IVV charges 0.03% per year while KBE charges 0.35%. On a $10,000 position that is $3 vs $35 annually, a gap of $32 per year that compounds over a long holding period. On income, IVV currently yields 1.10% against 2.11% for KBE.
Holdings Overlap
IVV and KBE share 16 holdings out of 593 unique holdings combined, representing a 3.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IVV or KBE?
IVV has an expense ratio of 0.03% while KBE charges 0.35%. IVV is the cheaper option. On a $10,000 investment, that is $32 per year of difference.
Which performed better, IVV or KBE?
Over the past year IVV returned +21.22% vs +14.63% for KBE, so IVV leads on 1-year performance. Over the longest common window we track (21 years), IVV annualized +7.00% vs +2.06% for KBE. Past performance does not guarantee future results.
Which is riskier, IVV or KBE?
KBE has been the more volatile fund at 26.7% annualized versus 15.1% for IVV. Worst drawdown: IVV -56.5% vs KBE -84.6%.
Should I hold both IVV and KBE?
IVV and KBE have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and KBE?
IVV and KBE share 16 common holdings with a 3.4% weight overlap. Combined, they hold 593 unique securities.
Which pays a higher dividend, IVV or KBE?
IVV yields 1.10% while KBE yields 2.11%, so KBE currently pays the higher dividend yield.
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