KBE vs SPY
State Street SPDR S&P Bank ETF vs State Street SPDR S&P 500 ETF Trust
Which is better, KBE or SPY?
Each has led over a different period.
SPY has a lower expense ratio. KBE led over 3Y, SPY over 1Y, 5Y and the full window. KBE is less concentrated, with 11.3% of the fund in its ten largest positions against 37.8%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | KBE | SPY |
|---|---|---|
| Expense Ratio | 0.35% | 0.09%Best |
| AUM | $1.6B | $804.7B |
| Dividend Yield | 2.16% | 0.98% |
| Holdings | 105 | 505 |
| YTD Return | +9.22% | +13.82%Best |
| 1Y Return | +11.47% | +16.96%Best |
| 3Y Return (annualized) | +24.53%Best | +22.97% |
| 5Y Return (annualized) | +8.91% | +13.73%Best |
| Volatility (annualized) | 26.6% | 15.1%Best |
| Max Drawdown | -84.6% | -56.5%Best |
| $10,000 over 5 years | $15,323 | $19,027Best |
| Top 10 Weight | 11.3%Best | 37.8% |
| Fund Family | State Street Investment Management | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Nov 8, 2005 | Jan 22, 1993 |
Volatility and max drawdown are measured over the window both funds cover: Nov 15, 2005 to Sep 21, 2026 (20.8 years).
KBE vs SPY growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 20.8 years both funds cover.
KBE vs SPY Performance
State Street SPDR S&P Bank ETF (KBE) is an ETF from State Street Investment Management and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year KBE returned +11.47% while SPY returned +16.96%. Year to date, KBE is up 9.22% versus a gain of 13.82% for SPY.
Over three years, KBE compounded at +24.53% per year against +22.97% for SPY; over five years the annualized figures are +8.91% and +13.73% respectively. Across the full 21-year window we track, SPY has the edge at +9.60% annualized vs +1.93%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
KBE has been the more volatile fund, with annualized monthly volatility of 26.6% compared with 15.1% for SPY. 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 -84.6% for KBE and -56.5% for SPY. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.70. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
KBE charges 0.35% per year while SPY charges 0.09%. On a $10,000 position that is $35 vs $9 annually, a gap of $26 per year that compounds over a long holding period. On income, KBE currently yields 2.16% against 0.98% for SPY.
Holdings Overlap
15.0% of KBE's money is in holdings SPY also owns. 3.1% of SPY's money is in holdings KBE also owns.
KBE and SPY share little of their money.
15 positions in common, counted across the 103 positions we hold weights for in KBE and 504 in SPY, against full books of 105 and 505.
What only one of them owns
Our book lists 482 positions for SPY that do not appear in our book for KBE (96.2% of the fund), and 85 for KBE that do not appear in SPY (81.8%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in KBE | Weight in SPY | Difference |
|---|---|---|---|
| JPMJpmorgan Chase | 1.09% | 1.45% | 0.36% |
| WFCWells Fargo & Co. | 1.00% | 0.40% | 0.60% |
| CCitigroup Inc. | 0.94% | 0.34% | 0.60% |
| BKBank Of New York Mellon Corp | 1.10% | 0.17% | 0.93% |
| USBUS Bancorp | 1.03% | 0.14% | 0.89% |
| PNCPnc Financial Services Group Inc. | 0.98% | 0.14% | 0.84% |
| NTRSNorthern Trust Corp. | 1.06% | 0.05% | 1.01% |
| APOAthene (Ath) / Apollo Global Management (Apo) | 0.99% | 0.09% | 0.90% |
| CFGCitizens Financial Group Inc. | 1.01% | 0.04% | 0.97% |
| MTBM&T Bank Corp | 0.99% | 0.05% | 0.94% |
You are not choosing between two funds in isolation.
Whichever of KBE and SPY you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, KBE or SPY?
KBE has an expense ratio of 0.35% while SPY charges 0.09%. SPY is the cheaper option, by $26 a year on a $10,000 investment.
Which performed better, KBE or SPY?
Over the past year KBE returned +11.47% vs +16.96% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (21 years), KBE annualized +1.93% vs +9.60% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, KBE or SPY?
KBE has been the more volatile fund at 26.6% annualized versus 15.1% for SPY. Worst drawdown: KBE -84.6% vs SPY -56.5%.
Should I hold both KBE and SPY?
KBE and SPY have a monthly-return correlation of 0.70, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between KBE and SPY?
15.0% of KBE's money is in holdings SPY also owns. 3.1% of SPY's is in holdings KBE also owns. They hold 15 positions in common, counted across the 103 positions we hold weights for in KBE and 504 in SPY.
Which pays a higher dividend, KBE or SPY?
KBE yields 2.16% while SPY yields 0.98%, so KBE currently pays the higher dividend yield.
Is SPY better than KBE?
SPY has a lower expense ratio. KBE led over 3Y, SPY over 1Y, 5Y and the full window. KBE is less concentrated, with 11.3% of the fund in its ten largest positions against 37.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.