KCE vs QQQ
State Street SPDR S&P Capital Markets ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | KCE | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.18% | |
| AUM | $460M | $455.8B | |
| Dividend Yield | 1.82% | 0.41% | |
| Holdings | 67 | 108 | |
| YTD Return | +10.58% | +18.31% | |
| 1Y Return | +8.21% | +25.37% | |
| 3Y Return (annualized) | +25.32% | +25.79% | |
| 5Y Return (annualized) | +13.04% | +15.20% | |
| Volatility (annualized) | 22.9% | 30.6% | |
| Max Drawdown | -74.4% | -83.0% | |
| Fund Family | State Street Investment Management | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Nov 8, 2005 | Mar 10, 1999 |
KCE vs QQQ Performance
State Street SPDR S&P Capital Markets ETF (KCE) is a ETF from State Street Investment Management and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year KCE returned +8.21% while QQQ returned +25.37%. Year to date, KCE is up 10.58% versus a gain of 18.31% for QQQ.
Over three years, KCE compounded at +25.32% per year against +25.79% for QQQ; over five years the annualized figures are +13.04% and +15.20% respectively. Across the full 21-year window we track, QQQ has the edge at +13.10% annualized vs +6.10%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 22.9% for KCE. 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 -74.4% for KCE and -83.0% for QQQ. 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 0.76. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
KCE charges 0.35% per year while QQQ charges 0.18%. On a $10,000 position that is $35 vs $18 annually, a gap of $17 per year that compounds over a long holding period. On income, KCE currently yields 1.82% against 0.41% for QQQ.
Holdings Overlap
KCE and QQQ share 0 holdings out of 104 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, KCE or QQQ?
KCE has an expense ratio of 0.35% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $17 per year of difference.
Which performed better, KCE or QQQ?
Over the past year KCE returned +8.21% vs +25.37% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (21 years), KCE annualized +6.10% vs +13.10% for QQQ. Past performance does not guarantee future results.
Which is riskier, KCE or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 22.9% for KCE. Worst drawdown: KCE -74.4% vs QQQ -83.0%.
Should I hold both KCE and QQQ?
KCE and QQQ have a monthly-return correlation of 0.76, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between KCE and QQQ?
KCE and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 104 unique securities.
Which pays a higher dividend, KCE or QQQ?
KCE yields 1.82% while QQQ yields 0.41%, so KCE currently pays the higher dividend yield.
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