KRE vs SPY
State Street SPDR S&P Regional Banking ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. KRE delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | KRE | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.09% | |
| AUM | $4.3B | $789.1B | |
| Dividend Yield | 2.14% | 1.01% | |
| Holdings | 150 | 505 | |
| YTD Return | +17.90% | +13.75% | |
| 1Y Return | +31.11% | +22.91% | |
| 3Y Return (annualized) | +19.80% | +21.67% | |
| 5Y Return (annualized) | +5.59% | +13.32% | |
| Volatility (annualized) | 26.4% | 15.3% | |
| Max Drawdown | -71.2% | -56.5% | |
| Fund Family | State Street Investment Management | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Jun 19, 2006 | Jan 22, 1993 |
KRE vs SPY Performance
State Street SPDR S&P Regional Banking ETF (KRE) is a ETF from State Street Investment Management and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year KRE returned +31.11% while SPY returned +22.91%. Year to date, KRE is up 17.90% versus a gain of 13.75% for SPY.
Over three years, KRE compounded at +19.80% per year against +21.67% for SPY; over five years the annualized figures are +5.59% and +13.32% respectively. Across the full 20-year window we track, SPY has the edge at +8.85% annualized vs +3.04%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
KRE has been the more volatile fund, with annualized monthly volatility of 26.4% 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 -71.2% for KRE 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 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
KRE charges 0.35% per year while SPY charges 0.09%. On a $10,000 position that is $35 vs $9 annually, a gap of $26 per year that compounds over a long holding period. On income, KRE currently yields 2.14% against 1.01% for SPY.
Holdings Overlap
KRE and SPY share 5 holdings out of 658 unique holdings combined, representing a 0.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, KRE or SPY?
KRE has an expense ratio of 0.35% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $26 per year of difference.
Which performed better, KRE or SPY?
Over the past year KRE returned +31.11% vs +22.91% for SPY, so KRE leads on 1-year performance. Over the longest common window we track (20 years), KRE annualized +3.04% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, KRE or SPY?
KRE has been the more volatile fund at 26.4% annualized versus 15.3% for SPY. Worst drawdown: KRE -71.2% vs SPY -56.5%.
Should I hold both KRE and SPY?
KRE and SPY have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between KRE and SPY?
KRE and SPY share 5 common holdings with a 0.3% weight overlap. Combined, they hold 658 unique securities.
Which pays a higher dividend, KRE or SPY?
KRE yields 2.14% while SPY yields 1.01%, so KRE currently pays the higher dividend yield.
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