KBWB vs VOO
Invesco KBW Bank ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. KBWB delivered stronger 1-year returns. VOO offers more diversification with 509 holdings.
Side-by-Side Comparison
| Metric | KBWB | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.03% | |
| AUM | $7.0B | $997.4B | |
| Dividend Yield | 1.94% | 1.08% | |
| Holdings | 30 | 509 | |
| YTD Return | +11.80% | +12.25% | |
| 1Y Return | +30.86% | +20.92% | |
| 3Y Return (annualized) | +34.90% | +21.79% | |
| 5Y Return (annualized) | +11.11% | +13.05% | |
| Volatility (annualized) | 23.9% | 14.1% | |
| Max Drawdown | -52.0% | -34.3% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Nov 1, 2011 | Sep 7, 2010 |
KBWB vs VOO Performance
Invesco KBW Bank ETF (KBWB) is a ETF from Invesco (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year KBWB returned +30.86% while VOO returned +20.92%. Year to date, KBWB is up 11.80% versus a gain of 12.25% for VOO.
Over three years, KBWB compounded at +34.90% per year against +21.79% for VOO; over five years the annualized figures are +11.11% and +13.05% respectively. Across the full 15-year window we track, VOO has the edge at +13.45% annualized vs +12.24%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
KBWB has been the more volatile fund, with annualized monthly volatility of 23.9% 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 -52.0% for KBWB 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 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
KBWB 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, KBWB currently yields 1.94% against 1.08% for VOO.
Holdings Overlap
KBWB and VOO share 18 holdings out of 512 unique holdings combined, representing a 4.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, KBWB or VOO?
KBWB 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, KBWB or VOO?
Over the past year KBWB returned +30.86% vs +20.92% for VOO, so KBWB leads on 1-year performance. Over the longest common window we track (15 years), KBWB annualized +12.24% vs +13.45% for VOO. Past performance does not guarantee future results.
Which is riskier, KBWB or VOO?
KBWB has been the more volatile fund at 23.9% annualized versus 14.1% for VOO. Worst drawdown: KBWB -52.0% vs VOO -34.3%.
Should I hold both KBWB and VOO?
KBWB and VOO 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 KBWB and VOO?
KBWB and VOO share 18 common holdings with a 4.0% weight overlap. Combined, they hold 512 unique securities.
Which pays a higher dividend, KBWB or VOO?
KBWB yields 1.94% while VOO yields 1.08%, so KBWB currently pays the higher dividend yield.
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