KBE vs SPY
State Street SPDR S&P Bank ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. KBE delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | KBE | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.09% | |
| AUM | $1.6B | $789.1B | |
| Dividend Yield | 2.15% | 1.01% | |
| Holdings | 105 | 505 | |
| YTD Return | +15.62% | +13.75% | |
| 1Y Return | +27.92% | +22.91% | |
| 3Y Return (annualized) | +22.21% | +21.67% | |
| 5Y Return (annualized) | +8.91% | +13.32% | |
| Volatility (annualized) | 26.7% | 15.3% | |
| Max Drawdown | -84.6% | -56.5% | |
| Fund Family | State Street Investment Management | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Nov 8, 2005 | Jan 22, 1993 |
KBE vs SPY Performance
State Street SPDR S&P Bank ETF (KBE) is a ETF from State Street Investment Management and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year KBE returned +27.92% while SPY returned +22.91%. Year to date, KBE is up 15.62% versus a gain of 13.75% for SPY.
Over three years, KBE compounded at +22.21% per year against +21.67% for SPY; over five years the annualized figures are +8.91% and +13.32% respectively. Across the full 21-year window we track, SPY has the edge at +8.85% annualized vs +2.22%. 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 15.3% 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 worth weighing if you expect to sell during market stress rather than ride it out.
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 2.15% against 1.01% for SPY.
Holdings Overlap
KBE and SPY share 0 holdings out of 505 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $26 per year of difference.
Which performed better, KBE or SPY?
Over the past year KBE returned +27.92% vs +22.91% for SPY, so KBE leads on 1-year performance. Over the longest common window we track (21 years), KBE annualized +2.22% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, KBE or SPY?
KBE has been the more volatile fund at 26.7% annualized versus 15.3% 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 combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between KBE and SPY?
KBE and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 505 unique securities.
Which pays a higher dividend, KBE or SPY?
KBE yields 2.15% while SPY yields 1.01%, so KBE currently pays the higher dividend yield.
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