KNGZ vs SPY
First Trust S&P 500 Diversified Dividend Aristocrats ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. KNGZ delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | KNGZ | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.09% | |
| AUM | $67M | $821.1B | |
| Dividend Yield | 2.52% | 1.01% | |
| Holdings | 99 | 505 | |
| YTD Return | +19.83% | +12.68% | |
| 1Y Return | +25.76% | +21.82% | |
| 3Y Return (annualized) | +17.80% | +21.98% | |
| 5Y Return (annualized) | +10.25% | +12.89% | |
| Volatility (annualized) | 17.1% | 15.3% | |
| Max Drawdown | -37.5% | -56.5% | |
| Fund Family | First Trust Portfolios (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Jun 20, 2017 | Jan 22, 1993 |
KNGZ vs SPY Performance
First Trust S&P 500 Diversified Dividend Aristocrats ETF (KNGZ) is a ETF from First Trust Portfolios (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year KNGZ returned +25.76% while SPY returned +21.82%. Year to date, KNGZ is up 19.83% versus a gain of 12.68% for SPY.
Over three years, KNGZ compounded at +17.80% per year against +21.98% for SPY; over five years the annualized figures are +10.25% and +12.89% respectively. Across the full 9-year window we track, KNGZ has the edge at +10.34% annualized vs +8.81%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
KNGZ has been the more volatile fund, with annualized monthly volatility of 17.1% 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 -37.5% for KNGZ 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 0.90. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
KNGZ charges 0.50% per year while SPY charges 0.09%. On a $10,000 position that is $50 vs $9 annually, a gap of $41 per year that compounds over a long holding period. On income, KNGZ currently yields 2.52% against 1.01% for SPY.
Holdings Overlap
KNGZ and SPY share 97 holdings out of 505 unique holdings combined, representing a 15.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, KNGZ or SPY?
KNGZ has an expense ratio of 0.50% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $41 per year of difference.
Which performed better, KNGZ or SPY?
Over the past year KNGZ returned +25.76% vs +21.82% for SPY, so KNGZ leads on 1-year performance. Over the longest common window we track (9 years), KNGZ annualized +10.34% vs +8.81% for SPY. Past performance does not guarantee future results.
Which is riskier, KNGZ or SPY?
KNGZ has been the more volatile fund at 17.1% annualized versus 15.3% for SPY. Worst drawdown: KNGZ -37.5% vs SPY -56.5%.
Should I hold both KNGZ and SPY?
KNGZ and SPY have a monthly-return correlation of 0.90, 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 KNGZ and SPY?
KNGZ and SPY share 97 common holdings with a 15.4% weight overlap. Combined, they hold 505 unique securities.
Which pays a higher dividend, KNGZ or SPY?
KNGZ yields 2.52% while SPY yields 1.01%, so KNGZ currently pays the higher dividend yield.
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