KMLM vs SPY
KraneShares Mount Lucas Managed Futures Index Strategy 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 505 holdings.
Side-by-Side Comparison
| Metric | KMLM | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.90% | 0.09% | |
| AUM | $389M | $821.1B | |
| Dividend Yield | 4.47% | 1.01% | |
| Holdings | 32 | 505 | |
| YTD Return | +11.15% | +13.17% | |
| 1Y Return | +13.64% | +21.53% | |
| 3Y Return (annualized) | -0.75% | +22.06% | |
| 5Y Return (annualized) | +5.77% | +13.35% | |
| Volatility (annualized) | 12.9% | 15.3% | |
| Max Drawdown | -27.5% | -56.5% | |
| Fund Family | KraneShares | State Street Investment Management | |
| Category | Alternative | Equity | |
| Inception | Dec 1, 2020 | Jan 22, 1993 |
KMLM vs SPY Performance
KraneShares Mount Lucas Managed Futures Index Strategy ETF (KMLM) 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 KMLM returned +13.64% while SPY returned +21.53%. Year to date, KMLM is up 11.15% versus a gain of 13.17% for SPY.
Over three years, KMLM compounded at -0.75% per year against +22.06% for SPY; over five years the annualized figures are +5.77% and +13.35% respectively. Across the full 6-year window we track, SPY has the edge at +8.82% annualized vs +7.13%. 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 12.9% for KMLM. 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 -27.5% for KMLM 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 -0.40. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
KMLM charges 0.90% per year while SPY charges 0.09%. On a $10,000 position that is $90 vs $9 annually, a gap of $81 per year that compounds over a long holding period. On income, KMLM currently yields 4.47% against 1.01% for SPY.
Holdings Overlap
KMLM and SPY share 15 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, KMLM or SPY?
KMLM has an expense ratio of 0.90% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $81 per year of difference.
Which performed better, KMLM or SPY?
Over the past year KMLM returned +13.64% vs +21.53% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (6 years), KMLM annualized +7.13% vs +8.82% for SPY. Past performance does not guarantee future results.
Which is riskier, KMLM or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 12.9% for KMLM. Worst drawdown: KMLM -27.5% vs SPY -56.5%.
Should I hold both KMLM and SPY?
KMLM and SPY have a monthly-return correlation of -0.40, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between KMLM and SPY?
KMLM and SPY share 15 common holdings with a 0.0% weight overlap. Combined, they hold 504 unique securities.
Which pays a higher dividend, KMLM or SPY?
KMLM yields 4.47% while SPY yields 1.01%, so KMLM currently pays the higher dividend yield.
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