KBE vs VTI

Quick Verdict

VTI has a lower expense ratio. KBE delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.

Lower Fees: VTIHigher Returns: KBEMore Diversified: VTI

Side-by-Side Comparison

MetricKBEVTIWinner
Expense Ratio0.35%0.03%
AUM$1.6B$663.5B
Dividend Yield2.15%1.07%
Holdings1053,543
YTD Return+16.56%+13.87%
1Y Return+28.97%+23.31%
3Y Return (annualized)+23.23%+21.17%
5Y Return (annualized)+8.74%+12.23%
Volatility (annualized)26.7%15.3%
Max Drawdown-84.6%-56.6%
Fund FamilyState Street Investment ManagementVanguard (US)
CategoryEquityEquity
InceptionNov 8, 2005May 24, 2001

KBE vs VTI Performance

State Street SPDR S&P Bank ETF (KBE) is a ETF from State Street Investment Management and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year KBE returned +28.97% while VTI returned +23.31%. Year to date, KBE is up 16.56% versus a gain of 13.87% for VTI.

Over three years, KBE compounded at +23.23% per year against +21.17% for VTI; over five years the annualized figures are +8.74% and +12.23% respectively. Across the full 21-year window we track, VTI has the edge at +8.13% annualized vs +2.26%. 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 VTI. 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 -56.6% for VTI. 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 0.71. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

KBE charges 0.35% per year while VTI 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 2.15% against 1.07% for VTI.

Holdings Overlap

0.0%overlap

KBE and VTI share 2 holdings out of 2783 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in KBEWeight in VTIDifference
ASB0.99%0.00%0.99%
BOH0.98%0.00%0.98%

Frequently Asked Questions

Which is cheaper, KBE or VTI?

KBE has an expense ratio of 0.35% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $32 per year of difference.

Which performed better, KBE or VTI?

Over the past year KBE returned +28.97% vs +23.31% for VTI, so KBE leads on 1-year performance. Over the longest common window we track (21 years), KBE annualized +2.26% vs +8.13% for VTI. Past performance does not guarantee future results.

Which is riskier, KBE or VTI?

KBE has been the more volatile fund at 26.7% annualized versus 15.3% for VTI. Worst drawdown: KBE -84.6% vs VTI -56.6%.

Should I hold both KBE and VTI?

KBE and VTI have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between KBE and VTI?

KBE and VTI share 2 common holdings with a 0.0% weight overlap. Combined, they hold 2783 unique securities.

Which pays a higher dividend, KBE or VTI?

KBE yields 2.15% while VTI yields 1.07%, so KBE currently pays the higher dividend yield.

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