KTF vs SPY

Quick Verdict

SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.

Lower Fees: TiedHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricKTFSPYWinner
Expense Ratio-0.09%
AUM$353M$789.1B
Dividend Yield8.22%1.01%
Holdings244505
YTD Return+3.66%+13.79%
1Y Return+12.82%+23.66%
3Y Return (annualized)+9.52%+21.40%
5Y Return (annualized)-0.45%+13.37%
Volatility (annualized)12.5%15.3%
Max Drawdown-60.4%-56.5%
Fund FamilyDWSState Street Investment Management
CategoryTax PreferredEquity
InceptionOct 20, 1988Jan 22, 1993

KTF vs SPY Performance

DWS Municipal Income Trust (KTF) is a ETF from DWS and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year KTF returned +12.82% while SPY returned +23.66%. Year to date, KTF is up 3.66% versus a gain of 13.79% for SPY.

Over three years, KTF compounded at +9.52% per year against +21.40% for SPY; over five years the annualized figures are -0.45% and +13.37% respectively. Across the full 31-year window we track, SPY has the edge at +8.85% annualized vs -0.11%. 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 12.5% for KTF. 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 -60.4% for KTF 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 0.18. They move independently enough that combining them can meaningfully diversify a portfolio.

Holdings Overlap

0.0%overlap

KTF and SPY share 0 holdings out of 626 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Frequently Asked Questions

Which performed better, KTF or SPY?

Over the past year KTF returned +12.82% vs +23.66% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (31 years), KTF annualized -0.11% vs +8.85% for SPY. Past performance does not guarantee future results.

Which is riskier, KTF or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 12.5% for KTF. Worst drawdown: KTF -60.4% vs SPY -56.5%.

Should I hold both KTF and SPY?

KTF and SPY have a monthly-return correlation of 0.18, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between KTF and SPY?

KTF and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 626 unique securities.

Which pays a higher dividend, KTF or SPY?

KTF yields 8.22% while SPY yields 1.01%, so KTF currently pays the higher dividend yield.

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