KHPI vs SPY
Kensington Hedged Premium Income 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 503 holdings.
Side-by-Side Comparison
| Metric | KHPI | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.98% | 0.09% | |
| AUM | $413M | $789.1B | |
| Dividend Yield | 8.96% | 1.01% | |
| Holdings | 7 | 505 | |
| YTD Return | +2.38% | +13.39% | |
| 1Y Return | +6.16% | +22.52% | |
| 3Y Return (annualized) | - | +21.36% | |
| 5Y Return (annualized) | - | +13.19% | |
| Volatility (annualized) | 8.9% | 15.3% | |
| Max Drawdown | -10.6% | -56.5% | |
| Fund Family | Kensington Funds | State Street Investment Management | |
| Category | Alternative | Equity | |
| Inception | Sep 4, 2024 | Jan 22, 1993 |
KHPI vs SPY Performance
Kensington Hedged Premium Income ETF (KHPI) is a ETF from Kensington Funds and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year KHPI returned +6.16% while SPY returned +22.52%. Year to date, KHPI is up 2.38% versus a gain of 13.39% for SPY.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 8.9% for KHPI. 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 -10.6% for KHPI 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 0.94. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
KHPI charges 0.98% per year while SPY charges 0.09%. On a $10,000 position that is $98 vs $9 annually, a gap of $89 per year that compounds over a long holding period. On income, KHPI currently yields 8.96% against 1.01% for SPY.
Holdings Overlap
KHPI and SPY share 0 holdings out of 504 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, KHPI or SPY?
KHPI has an expense ratio of 0.98% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $89 per year of difference.
Which performed better, KHPI or SPY?
Over the past year KHPI returned +6.16% vs +22.52% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (2 years), KHPI annualized +8.89% vs +8.84% for SPY. Past performance does not guarantee future results.
Which is riskier, KHPI or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 8.9% for KHPI. Worst drawdown: KHPI -10.6% vs SPY -56.5%.
Should I hold both KHPI and SPY?
KHPI and SPY have a monthly-return correlation of 0.94, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between KHPI and SPY?
KHPI and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 504 unique securities.
Which pays a higher dividend, KHPI or SPY?
KHPI yields 8.96% while SPY yields 1.01%, so KHPI currently pays the higher dividend yield.
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