KCAI vs SPY
KraneShares China Alpha Index ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. KCAI delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | KCAI | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.79% | 0.09% | |
| AUM | $3M | $821.1B | |
| Dividend Yield | 32.81% | 1.01% | |
| Holdings | 42 | 505 | |
| YTD Return | +7.01% | +12.68% | |
| 1Y Return | +32.07% | +21.82% | |
| 3Y Return (annualized) | - | +21.98% | |
| 5Y Return (annualized) | - | +12.89% | |
| Volatility (annualized) | 17.0% | 15.3% | |
| Max Drawdown | -26.6% | -56.5% | |
| Fund Family | KraneShares | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Aug 28, 2024 | Jan 22, 1993 |
KCAI vs SPY Performance
KraneShares China Alpha Index ETF (KCAI) is a ETF from KraneShares and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year KCAI returned +32.07% while SPY returned +21.82%. Year to date, KCAI is up 7.01% versus a gain of 12.68% for SPY.
Risk: Volatility and Drawdowns
KCAI has been the more volatile fund, with annualized monthly volatility of 17.0% 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 -26.6% for KCAI 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 0.22. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
KCAI charges 0.79% per year while SPY charges 0.09%. On a $10,000 position that is $79 vs $9 annually, a gap of $70 per year that compounds over a long holding period. On income, KCAI currently yields 32.81% against 1.01% for SPY.
Holdings Overlap
KCAI and SPY share 0 holdings out of 544 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, KCAI or SPY?
KCAI has an expense ratio of 0.79% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $70 per year of difference.
Which performed better, KCAI or SPY?
Over the past year KCAI returned +32.07% vs +21.82% for SPY, so KCAI leads on 1-year performance. Over the longest common window we track (2 years), KCAI annualized +35.35% vs +8.81% for SPY. Past performance does not guarantee future results.
Which is riskier, KCAI or SPY?
KCAI has been the more volatile fund at 17.0% annualized versus 15.3% for SPY. Worst drawdown: KCAI -26.6% vs SPY -56.5%.
Should I hold both KCAI and SPY?
KCAI and SPY have a monthly-return correlation of 0.22, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between KCAI and SPY?
KCAI and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 544 unique securities.
Which pays a higher dividend, KCAI or SPY?
KCAI yields 32.81% while SPY yields 1.01%, so KCAI currently pays the higher dividend yield.
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