BNDD vs. KSPY

Last updated Jun 4, 2026

BNDD (Quadratic Deflation ETF) and KSPY (Kraneshares Hedgeye Hedged Equity Index ETF) are both exchange-traded funds - BNDD is a Government Bonds fund actively managed by KraneShares, while KSPY is a Equity Hedged fund tracking the Hedgeye Hedged Equity Index. BNDD is actively managed, while KSPY is passively managed. Over the past year, BNDD returned 3.39% vs 18.09% for KSPY. At a 0.14 correlation, their price movements are largely independent. BNDD charges 1.02%/yr vs 0.78%/yr for KSPY.

Performance

BNDD vs. KSPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Quadratic Deflation ETF (BNDD) and Kraneshares Hedgeye Hedged Equity Index ETF (KSPY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, BNDD achieves a 4.32% return, which is significantly lower than KSPY's 5.43% return.

BNDD

• 1D: -0.08%
• 1M: 1.37%
• YTD: 4.32%
• 6M: 2.24%
• 1Y: 3.39%
• 3Y*: -3.91%
• 5Y*: —
• 10Y*: —

KSPY

• 1D: -0.28%
• 1M: 1.96%
• YTD: 5.43%
• 6M: 5.87%
• 1Y: 18.09%
• 3Y*: —
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

BNDD vs. KSPY - Yearly Performance Comparison

	2026 (YTD)	2025	2024
BNDD Quadratic Deflation ETF	4.32%	-8.17%	-5.34%
KSPY Kraneshares Hedgeye Hedged Equity Index ETF	5.43%	13.89%	3.43%

Correlation

The correlation between BNDD and KSPY is 0.18, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.18
Correlation (All Time) Calculated using the full available price history since Jul 17, 2024	0.14

BNDD vs. KSPY - Sectors Allocation Comparison

Sectors	BNDD	KSPY
Financial Services	77.7%	11.9%
Basic Materials	-	1.8%
Communication Services	-	10.9%
Consumer Cyclical	-	10.1%
Consumer Defensive	-	4.9%
Energy	-	3.5%
Healthcare	-	8.4%
Industrials	-	8.1%
Real Estate	-	1.9%
Technology	-	36.2%
Utilities	-	2.3%

Return for Risk

BNDD vs. KSPY — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

BNDD

BNDD Risk / Return Rank: 14
BNDD Sharpe Ratio Rank: 13
BNDD Sortino Ratio Rank: 12
BNDD Omega Ratio Rank: 12
BNDD Calmar Ratio Rank: 16
BNDD Martin Ratio Rank: 15

KSPY

KSPY Risk / Return Rank: 85
KSPY Sharpe Ratio Rank: 80
KSPY Sortino Ratio Rank: 84
KSPY Omega Ratio Rank: 91
KSPY Calmar Ratio Rank: 80
KSPY Martin Ratio Rank: 91

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

BNDD vs. KSPY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Quadratic Deflation ETF (BNDD) and Kraneshares Hedgeye Hedged Equity Index ETF (KSPY). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	BNDD	KSPY	Difference
Sharpe ratio: Return per unit of total volatility	0.32	2.60	-2.28
Sortino ratio: Return per unit of downside risk	0.52	3.76	-3.23
Omega ratio: Gain probability vs. loss probability	1.06	1.59	-0.53
Calmar ratio: Return relative to maximum drawdown	0.56	4.07	-3.51
Martin ratio: Return relative to average drawdown	1.20	21.74	-20.54
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

BNDD vs. KSPY - Sharpe Ratio Comparison

The current BNDD Sharpe Ratio is 0.32, which is lower than the KSPY Sharpe Ratio of 2.60. The chart below compares the historical Sharpe Ratios of BNDD and KSPY, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	BNDD	KSPY	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.32	2.60	-2.28
Sharpe Ratio (All Time) Calculated using the full available price history	-0.33	1.17	-1.49

Drawdowns

BNDD vs. KSPY - Drawdown Comparison

The maximum BNDD drawdown since its inception was -30.87%, which is greater than KSPY's maximum drawdown of -11.67%. Use the drawdown chart below to compare losses from any high point for BNDD and KSPY.

Drawdown Indicators

	BNDD	KSPY	Difference
Max Drawdown Largest peak-to-trough decline	-30.87%	-11.67%	-19.20%
Max Drawdown (1Y) Largest decline over 1 year	-6.09%	-4.46%	-1.63%
Max Drawdown (3Y) Largest decline over 3 years	-20.75%	—	—
Current Drawdown Current decline from peak	-26.51%	-0.28%	-26.23%
Average Drawdown Average peak-to-trough decline	-19.34%	-1.18%	-18.16%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.83%	0.83%	+2.00%

Volatility

BNDD vs. KSPY - Volatility Comparison

Quadratic Deflation ETF (BNDD) has a higher volatility of 2.21% compared to Kraneshares Hedgeye Hedged Equity Index ETF (KSPY) at 0.76%. This indicates that BNDD's price experiences larger fluctuations and is considered to be riskier than KSPY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	BNDD	KSPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.21%	0.76%	+1.45%
Volatility (6M) Calculated over the trailing 6-month period	8.11%	5.51%	+2.60%
Volatility (1Y) Calculated over the trailing 1-year period	10.59%	7.00%	+3.59%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.38%	10.53%	+2.85%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	13.38%	10.53%	+2.85%

BNDD vs. KSPY - Expense Ratio Comparison

BNDD has a 1.02% expense ratio, which is higher than KSPY's 0.78% expense ratio.

Dividends

BNDD vs. KSPY - Dividend Comparison

BNDD's dividend yield for the trailing twelve months is around 3.61%, less than KSPY's 5.85% yield.

Position	TTM	2025	2024	2023	2022	2021
BNDD Quadratic Deflation ETF	3.61%	3.82%	3.85%	4.30%	43.17%	1.04%
KSPY Kraneshares Hedgeye Hedged Equity Index ETF	5.85%	6.16%	1.31%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both BNDD and KSPY in my portfolio?

BNDD and KSPY have a correlation of 0.18, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, BNDD or KSPY?

BNDD has higher volatility (2.21%) compared to KSPY (0.76%). In terms of maximum drawdown, BNDD dropped -30.87% vs KSPY's -11.67%.

Which ETF is better, BNDD or KSPY?

On 1-year performance, KSPY leads with 18.09% vs 3.39% for BNDD. On fees, KSPY is cheaper at 0.78% per year. On volatility, KSPY has been the lower-risk option at 0.76%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, BNDD or KSPY?

Over the 1-year period, KSPY has performed better with a 18.09% return vs 3.39%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, BNDD or KSPY?

KSPY is cheaper with a 0.78% expense ratio, compared with 1.02% for BNDD.

Which ETF pays a higher dividend yield, BNDD or KSPY?

KSPY has the higher dividend yield at 5.85%, compared with 3.61% for BNDD.

What is the main difference between BNDD and KSPY?

BNDD is categorized as Government Bonds, while KSPY is Equity Hedged. Their fees differ too: 1.02% for BNDD and 0.78% for KSPY.

Which has better risk-adjusted returns?

KSPY currently has the higher Sharpe Ratio (2.60 vs 0.32), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.