KBWR vs SPY
Invesco KBW Regional Banking ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | KBWR | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.09% | |
| AUM | $52M | $821.1B | |
| Dividend Yield | 2.65% | 1.01% | |
| Holdings | 52 | 505 | |
| YTD Return | +11.45% | +12.68% | |
| 1Y Return | +13.84% | +21.82% | |
| 3Y Return (annualized) | +8.55% | +21.98% | |
| 5Y Return (annualized) | +6.18% | +12.89% | |
| Volatility (annualized) | 27.1% | 15.3% | |
| Max Drawdown | -52.9% | -56.5% | |
| Fund Family | Invesco (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Nov 1, 2011 | Jan 22, 1993 |
KBWR vs SPY Performance
Invesco KBW Regional Banking ETF (KBWR) is a ETF from Invesco (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year KBWR returned +13.84% while SPY returned +21.82%. Year to date, KBWR is up 11.45% versus a gain of 12.68% for SPY.
Over three years, KBWR compounded at +8.55% per year against +21.98% for SPY; over five years the annualized figures are +6.18% and +12.89% respectively. Across the full 14-year window we track, KBWR has the edge at +10.69% annualized vs +8.81%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
KBWR has been the more volatile fund, with annualized monthly volatility of 27.1% 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 -52.9% for KBWR 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 0.54. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
KBWR 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, KBWR currently yields 2.65% against 1.01% for SPY.
Holdings Overlap
KBWR and SPY share 0 holdings out of 555 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, KBWR or SPY?
KBWR 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, KBWR or SPY?
Over the past year KBWR returned +13.84% vs +21.82% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (14 years), KBWR annualized +10.69% vs +8.81% for SPY. Past performance does not guarantee future results.
Which is riskier, KBWR or SPY?
KBWR has been the more volatile fund at 27.1% annualized versus 15.3% for SPY. Worst drawdown: KBWR -52.9% vs SPY -56.5%.
Should I hold both KBWR and SPY?
KBWR and SPY have a monthly-return correlation of 0.54, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between KBWR and SPY?
KBWR and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 555 unique securities.
Which pays a higher dividend, KBWR or SPY?
KBWR yields 2.65% while SPY yields 1.01%, so KBWR currently pays the higher dividend yield.
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