KIO vs SPY

Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricKIOSPYWinner
Expense Ratio4.59%0.09%
AUM$488M$789.1B
Dividend Yield12.12%1.01%
Holdings327505
YTD Return+4.35%+13.39%
1Y Return-0.57%+22.52%
3Y Return (annualized)+9.35%+21.36%
5Y Return (annualized)+3.47%+13.19%
Volatility (annualized)14.3%15.3%
Max Drawdown-54.5%-56.5%
Fund FamilyKKR FundsState Street Investment Management
CategoryFixed IncomeEquity
InceptionJul 26, 2013Jan 22, 1993

KIO vs SPY Performance

KKR Income Opportunities Fund (KIO) is a ETF from KKR Funds and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year KIO returned -0.57% while SPY returned +22.52%. Year to date, KIO is up 4.35% versus a gain of 13.39% for SPY.

Over three years, KIO compounded at +9.35% per year against +21.36% for SPY; over five years the annualized figures are +3.47% and +13.19% respectively. Across the full 13-year window we track, SPY has the edge at +8.84% annualized vs +0.13%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 14.3% for KIO. 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 -54.5% for KIO 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 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

KIO charges 4.59% per year while SPY charges 0.09%. On a $10,000 position that is $459 vs $9 annually, a gap of $450 per year that compounds over a long holding period. On income, KIO currently yields 12.12% against 1.01% for SPY.

Holdings Overlap

0.0%overlap

KIO and SPY share 1 holdings out of 599 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in KIOWeight in SPYDifference
NCLH0.34%0.01%0.33%

Frequently Asked Questions

Which is cheaper, KIO or SPY?

KIO has an expense ratio of 4.59% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $450 per year of difference.

Which performed better, KIO or SPY?

Over the past year KIO returned -0.57% vs +22.52% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (13 years), KIO annualized +0.13% vs +8.84% for SPY. Past performance does not guarantee future results.

Which is riskier, KIO or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 14.3% for KIO. Worst drawdown: KIO -54.5% vs SPY -56.5%.

Should I hold both KIO and SPY?

KIO and SPY have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between KIO and SPY?

KIO and SPY share 1 common holdings with a 0.0% weight overlap. Combined, they hold 599 unique securities.

Which pays a higher dividend, KIO or SPY?

KIO yields 12.12% while SPY yields 1.01%, so KIO currently pays the higher dividend yield.

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