LKOR vs SPY
FlexShares Credit-Scored US Long Corporate Bond Index Fund vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. LKOR offers more diversification with 771 holdings.
Side-by-Side Comparison
| Metric | LKOR | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.09% | |
| AUM | $30M | $789.1B | |
| Dividend Yield | 5.70% | 1.01% | |
| Holdings | 817 | 505 | |
| YTD Return | -5.59% | +13.68% | |
| 1Y Return | -3.99% | +21.53% | |
| 3Y Return (annualized) | +2.95% | +21.44% | |
| 5Y Return (annualized) | -3.69% | +13.18% | |
| Volatility (annualized) | 27.9% | 15.3% | |
| Max Drawdown | -42.4% | -56.5% | |
| Fund Family | Flexshares Trust | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Sep 23, 2015 | Jan 22, 1993 |
LKOR vs SPY Performance
FlexShares Credit-Scored US Long Corporate Bond Index Fund (LKOR) is a ETF from Flexshares Trust and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year LKOR returned -3.99% while SPY returned +21.53%. Year to date, LKOR is down 5.59% versus a gain of 13.68% for SPY.
Over three years, LKOR compounded at +2.95% per year against +21.44% for SPY; over five years the annualized figures are -3.69% and +13.18% respectively. Across the full 11-year window we track, SPY has the edge at +8.85% annualized vs +2.14%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
LKOR has been the more volatile fund, with annualized monthly volatility of 27.9% 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 -42.4% for LKOR 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 0.12. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
LKOR charges 0.15% per year while SPY charges 0.09%. On a $10,000 position that is $15 vs $9 annually, a gap of $6 per year that compounds over a long holding period. On income, LKOR currently yields 5.70% against 1.01% for SPY.
Holdings Overlap
LKOR and SPY share 1 holdings out of 1273 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in LKOR | Weight in SPY | Difference |
|---|---|---|---|
| LRCX | 0.03% | 0.68% | 0.65% |
Frequently Asked Questions
Which is cheaper, LKOR or SPY?
LKOR has an expense ratio of 0.15% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, LKOR or SPY?
Over the past year LKOR returned -3.99% vs +21.53% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (11 years), LKOR annualized +2.14% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, LKOR or SPY?
LKOR has been the more volatile fund at 27.9% annualized versus 15.3% for SPY. Worst drawdown: LKOR -42.4% vs SPY -56.5%.
Should I hold both LKOR and SPY?
LKOR and SPY have a monthly-return correlation of 0.12, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between LKOR and SPY?
LKOR and SPY share 1 common holdings with a 0.0% weight overlap. Combined, they hold 1273 unique securities.
Which pays a higher dividend, LKOR or SPY?
LKOR yields 5.70% while SPY yields 1.01%, so LKOR currently pays the higher dividend yield.
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