KAT vs SPY
Scharf ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | KAT | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.75% | 0.09% | |
| AUM | $683M | $814.4B | |
| Dividend Yield | 0.46% | 1.01% | |
| Holdings | 35 | 505 | |
| YTD Return | +7.14% | +12.87% | |
| 1Y Return | +8.76% | +21.13% | |
| 3Y Return (annualized) | - | +20.86% | |
| 5Y Return (annualized) | - | +12.69% | |
| Volatility (annualized) | 12.7% | 15.3% | |
| Max Drawdown | -9.3% | -56.5% | |
| Fund Family | Scharf Funds | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Dec 30, 2011 | Jan 22, 1993 |
KAT vs SPY Performance
Scharf ETF (KAT) is a ETF from Scharf Funds and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year KAT returned +8.76% while SPY returned +21.13%. Year to date, KAT is up 7.14% versus a gain of 12.87% for SPY.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 12.7% for KAT. 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 -9.3% for KAT and -56.5% for SPY. 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 0.49. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
KAT charges 0.75% per year while SPY charges 0.09%. On a $10,000 position that is $75 vs $9 annually, a gap of $66 per year that compounds over a long holding period. On income, KAT currently yields 0.46% against 1.01% for SPY.
Holdings Overlap
KAT and SPY share 24 holdings out of 513 unique holdings combined, representing a 17.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, KAT or SPY?
KAT has an expense ratio of 0.75% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $66 per year of difference.
Which performed better, KAT or SPY?
Over the past year KAT returned +8.76% vs +21.13% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (1 years), KAT annualized +8.09% vs +8.80% for SPY. Past performance does not guarantee future results.
Which is riskier, KAT or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 12.7% for KAT. Worst drawdown: KAT -9.3% vs SPY -56.5%.
Should I hold both KAT and SPY?
KAT and SPY have a monthly-return correlation of 0.49, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between KAT and SPY?
KAT and SPY share 24 common holdings with a 17.1% weight overlap. Combined, they hold 513 unique securities.
Which pays a higher dividend, KAT or SPY?
KAT yields 0.46% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.
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