KLXY vs SPY

KLXY vs SPY
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Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricKLXYSPYWinner
Expense Ratio0.69%0.09%
AUM$2M$821.1B
Dividend Yield0.84%1.01%
Holdings31505
YTD Return-1.39%+12.68%
1Y Return+10.83%+21.82%
3Y Return (annualized)-+21.98%
5Y Return (annualized)-+12.89%
Volatility (annualized)16.1%15.3%
Max Drawdown-26.6%-56.5%
Fund FamilyKraneSharesState Street Investment Management
CategoryEquityEquity
InceptionSep 7, 2023Jan 22, 1993

KLXY vs SPY Performance

KraneShares Global Luxury Index ETF (KLXY) 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 KLXY returned +10.83% while SPY returned +21.82%. Year to date, KLXY is down 1.39% versus a gain of 12.68% for SPY.

Risk: Volatility and Drawdowns

KLXY has been the more volatile fund, with annualized monthly volatility of 16.1% 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 KLXY 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 0.59. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

KLXY charges 0.69% per year while SPY charges 0.09%. On a $10,000 position that is $69 vs $9 annually, a gap of $60 per year that compounds over a long holding period. On income, KLXY currently yields 0.84% against 1.01% for SPY.

Holdings Overlap

0.1%overlap

KLXY and SPY share 4 holdings out of 523 unique holdings combined, representing a 0.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in KLXYWeight in SPYDifference
DECK6.06%0.02%6.04%
EL5.79%0.03%5.76%
TPR5.25%0.05%5.20%
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Frequently Asked Questions

Which is cheaper, KLXY or SPY?

KLXY has an expense ratio of 0.69% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $60 per year of difference.

Which performed better, KLXY or SPY?

Over the past year KLXY returned +10.83% vs +21.82% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (3 years), KLXY annualized +2.81% vs +8.81% for SPY. Past performance does not guarantee future results.

Which is riskier, KLXY or SPY?

KLXY has been the more volatile fund at 16.1% annualized versus 15.3% for SPY. Worst drawdown: KLXY -26.6% vs SPY -56.5%.

Should I hold both KLXY and SPY?

KLXY and SPY have a monthly-return correlation of 0.59, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between KLXY and SPY?

KLXY and SPY share 4 common holdings with a 0.1% weight overlap. Combined, they hold 523 unique securities.

Which pays a higher dividend, KLXY or SPY?

KLXY yields 0.84% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.

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