KBE vs VOO
State Street SPDR S&P Bank ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 509 holdings.
Side-by-Side Comparison
| Metric | KBE | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.03% | |
| AUM | $1.6B | $997.4B | |
| Dividend Yield | 2.11% | 1.08% | |
| Holdings | 105 | 509 | |
| YTD Return | +12.10% | +12.87% | |
| 1Y Return | +14.63% | +21.15% | |
| 3Y Return (annualized) | +22.45% | +20.93% | |
| 5Y Return (annualized) | +8.21% | +12.76% | |
| Volatility (annualized) | 26.7% | 14.1% | |
| Max Drawdown | -84.6% | -34.3% | |
| Fund Family | State Street Investment Management | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Nov 8, 2005 | Sep 7, 2010 |
KBE vs VOO Performance
State Street SPDR S&P Bank ETF (KBE) is a ETF from State Street Investment Management and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year KBE returned +14.63% while VOO returned +21.15%. Year to date, KBE is up 12.10% versus a gain of 12.87% for VOO.
Over three years, KBE compounded at +22.45% per year against +20.93% for VOO; over five years the annualized figures are +8.21% and +12.76% respectively. Across the full 16-year window we track, VOO has the edge at +13.46% 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 14.1% for VOO. 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 -34.3% for VOO. 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
KBE charges 0.35% per year while VOO charges 0.03%. On a $10,000 position that is $35 vs $3 annually, a gap of $32 per year that compounds over a long holding period. On income, KBE currently yields 2.11% against 1.08% for VOO.
Holdings Overlap
KBE and VOO 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, KBE or VOO?
KBE has an expense ratio of 0.35% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $32 per year of difference.
Which performed better, KBE or VOO?
Over the past year KBE returned +14.63% vs +21.15% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), KBE annualized +2.06% vs +13.46% for VOO. Past performance does not guarantee future results.
Which is riskier, KBE or VOO?
KBE has been the more volatile fund at 26.7% annualized versus 14.1% for VOO. Worst drawdown: KBE -84.6% vs VOO -34.3%.
Should I hold both KBE and VOO?
KBE and VOO 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 KBE and VOO?
KBE and VOO share 16 common holdings with a 3.4% weight overlap. Combined, they hold 593 unique securities.
Which pays a higher dividend, KBE or VOO?
KBE yields 2.11% while VOO yields 1.08%, so KBE currently pays the higher dividend yield.
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