KCE vs VYM
State Street SPDR S&P Capital Markets ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | KCE | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.04% | |
| AUM | $460M | $79.0B | |
| Dividend Yield | 1.82% | 2.86% | |
| Holdings | 67 | 568 | |
| YTD Return | +8.94% | +16.10% | |
| 1Y Return | +8.73% | +25.99% | |
| 3Y Return (annualized) | +24.60% | +18.29% | |
| 5Y Return (annualized) | +12.80% | +12.35% | |
| Volatility (annualized) | 22.9% | 14.6% | |
| Max Drawdown | -74.4% | -58.8% | |
| Fund Family | State Street Investment Management | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Nov 8, 2005 | Nov 10, 2006 |
KCE vs VYM Performance
State Street SPDR S&P Capital Markets ETF (KCE) is a ETF from State Street Investment Management and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year KCE returned +8.73% while VYM returned +25.99%. Year to date, KCE is up 8.94% versus a gain of 16.10% for VYM.
Over three years, KCE compounded at +24.60% per year against +18.29% for VYM; over five years the annualized figures are +12.80% and +12.35% respectively. Across the full 20-year window we track, VYM has the edge at +7.08% annualized vs +6.03%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
KCE has been the more volatile fund, with annualized monthly volatility of 22.9% 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 -74.4% for KCE and -58.8% for VYM. 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 0.81. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
KCE 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, KCE currently yields 1.82% against 2.86% for VYM.
Holdings Overlap
KCE and VYM share 1 holdings out of 558 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in KCE | Weight in VYM | Difference |
|---|---|---|---|
| IVZ | 1.54% | 0.04% | 1.50% |
Frequently Asked Questions
Which is cheaper, KCE or VYM?
KCE has an expense ratio of 0.35% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $31 per year of difference.
Which performed better, KCE or VYM?
Over the past year KCE returned +8.73% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), KCE annualized +6.03% vs +7.08% for VYM. Past performance does not guarantee future results.
Which is riskier, KCE or VYM?
KCE has been the more volatile fund at 22.9% annualized versus 14.6% for VYM. Worst drawdown: KCE -74.4% vs VYM -58.8%.
Should I hold both KCE and VYM?
KCE and VYM have a monthly-return correlation of 0.81, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between KCE and VYM?
KCE and VYM share 1 common holdings with a 0.0% weight overlap. Combined, they hold 558 unique securities.
Which pays a higher dividend, KCE or VYM?
KCE yields 1.82% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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