KBE vs VYM
State Street SPDR S&P Bank ETF vs Vanguard High Dividend Yield ETF
Which is better, KBE or VYM?
Large Cap Blend against Large Cap Value.
VYM has a lower expense ratio. KBE led over 3Y, VYM over 1Y, 5Y and the full window. KBE is less concentrated, with 11.3% of the fund in its ten largest positions against 26.1%.
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 | VYM |
|---|---|---|
| Expense Ratio | 0.35% | 0.04%Best |
| AUM | $1.6B | $81.6B |
| Dividend Yield | 2.16% | 2.22% |
| Holdings | 105 | 613 |
| YTD Return | +10.13% | +11.35%Best |
| 1Y Return | +10.06% | +15.34%Best |
| 3Y Return (annualized) | +23.70%Best | +17.22% |
| 5Y Return (annualized) | +9.02% | +12.30%Best |
| Volatility (annualized) | 27.2% | 14.6%Best |
| Max Drawdown | -84.6% | -58.8%Best |
| $10,000 over 5 years | $15,400 | $17,861Best |
| Top 10 Weight | 11.3%Best | 26.1% |
| Fund Family | State Street Investment Management | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | Nov 8, 2005 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Nov 16, 2006 to Sep 18, 2026 (19.8 years).
KBE vs VYM 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 19.8 years both funds cover.
KBE vs VYM Performance
State Street SPDR S&P Bank ETF (KBE) is an ETF from State Street Investment Management and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year KBE returned +10.06% while VYM returned +15.34%. Year to date, KBE is up 10.13% versus a gain of 11.35% for VYM.
Over three years, KBE compounded at +23.70% per year against +17.22% for VYM; over five years the annualized figures are +9.02% and +12.30% respectively. Across the full 20-year window we track, VYM has the edge at +6.82% annualized vs +1.47%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
KBE has been the more volatile fund, with annualized monthly volatility of 27.2% compared with 14.6% for VYM. 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 -58.8% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
KBE charges 0.35% per year while VYM charges 0.04%. On a $10,000 position that is $35 vs $4 annually, a gap of $31 per year that compounds over a long holding period. On income, KBE currently yields 2.16% against 2.22% for VYM.
Holdings Overlap
64.9% of KBE's money is in holdings VYM also owns. 9.8% of VYM's money is in holdings KBE also owns.
The two portfolios partly overlap.
66 positions in common, counted across the 103 positions we hold weights for in KBE and 557 in VYM, against full books of 105 and 613.
What only one of them owns
Our book lists 463 positions for VYM that do not appear in our book for KBE (87.3% of the fund), and 35 for KBE that do not appear in VYM (33.0%).
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 VYM | Difference |
|---|---|---|---|
| JPMJpmorgan Chase | 1.09% | 3.82% | 2.73% |
| WFCWells Fargo & Co. | 1.00% | 1.07% | 0.07% |
| CCitigroup Inc. | 0.94% | 0.89% | 0.05% |
| BKBank Of New York Mellon Corp | 1.10% | 0.44% | 0.66% |
| USBUS Bancorp | 1.03% | 0.40% | 0.63% |
| PNCPnc Financial Services Group Inc. | 0.98% | 0.41% | 0.57% |
| JXNJackson Financial Inc USD | 1.19% | 0.03% | 1.16% |
| TFCTruist Financial Corp. | 0.95% | 0.26% | 0.69% |
| NTRSNorthern Trust Corp. | 1.06% | 0.14% | 0.92% |
| APOAthene (Ath) / Apollo Global Management (Apo) | 0.99% | 0.21% | 0.78% |
64.9% of KBE is already inside VYM.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
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Frequently Asked Questions
Which is cheaper, KBE or VYM?
KBE has an expense ratio of 0.35% while VYM charges 0.04%. VYM is the cheaper option, by $31 a year on a $10,000 investment.
Which performed better, KBE or VYM?
Over the past year KBE returned +10.06% vs +15.34% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), KBE annualized +1.47% vs +6.82% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, KBE or VYM?
KBE has been the more volatile fund at 27.2% annualized versus 14.6% for VYM. Worst drawdown: KBE -84.6% vs VYM -58.8%.
Should I hold both KBE and VYM?
KBE and VYM have a monthly-return correlation of 0.78, 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 VYM?
64.9% of KBE's money is in holdings VYM also owns. 9.8% of VYM's is in holdings KBE also owns. They hold 66 positions in common, counted across the 103 positions we hold weights for in KBE and 557 in VYM.
Which pays a higher dividend, KBE or VYM?
KBE yields 2.16% while VYM yields 2.22%, so VYM currently pays the higher dividend yield.
Is VYM better than KBE?
VYM has a lower expense ratio. KBE led over 3Y, VYM over 1Y, 5Y and the full window. KBE is less concentrated, with 11.3% of the fund in its ten largest positions against 26.1%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.