KBWD vs. SPY

Last updated Jul 14, 2026

KBWD (Invesco KBW High Dividend Yield Financial ETF) and SPY (State Street SPDR S&P 500 ETF) are both exchange-traded funds - KBWD is a Financials Equities fund tracking the KBW Nasdaq Financial Sector Dividend Yield Index, while SPY is a S&P 500 fund tracking the S&P 500 Index. Both are passively managed. Over the past 10 years, KBWD returned 4.71%/yr vs 15.08%/yr for SPY. A 0.68 correlation means they provide meaningful diversification when combined. KBWD charges 5.39%/yr vs 0.09%/yr for SPY.

Performance

KBWD vs. SPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco KBW High Dividend Yield Financial ETF (KBWD) and State Street SPDR S&P 500 ETF (SPY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, KBWD achieves a -3.66% return, which is significantly lower than SPY's 10.45% return. Over the past 10 years, KBWD has underperformed SPY with an annualized return of 4.71%, while SPY has yielded a comparatively higher 15.08% annualized return.

KBWD

• 1D: -0.88%
• 1M: 0.08%
• 6M: -7.19%
• YTD: -3.66%
• 1Y: -1.54%
• 3Y*: 3.61%
• 5Y*: 1.33%
• 10Y*: 4.71%

SPY

• 1D: -0.77%
• 1M: 1.26%
• 6M: 8.34%
• YTD: 10.45%
• 1Y: 21.46%
• 3Y*: 20.07%
• 5Y*: 12.94%
• 10Y*: 15.08%

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

KBWD vs. SPY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
KBWD Invesco KBW High Dividend Yield Financial ETF	-3.66%	5.59%	4.30%	20.21%	-19.14%	31.89%	-15.58%	20.72%	-8.70%	12.06%
SPY State Street SPDR S&P 500 ETF	10.45%	17.72%	24.89%	26.18%	-18.18%	28.73%	18.33%	31.22%	-4.57%	21.71%

Correlation

The correlation between KBWD and SPY is 0.50, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.50
Correlation (3Y) Calculated over the trailing 3-year period	0.57
Correlation (5Y) Calculated over the trailing 5-year period	0.67
Correlation (10Y) Calculated over the trailing 10-year period	0.64
Correlation (All Time) Calculated using the full available price history since Dec 2, 2010	0.68

The correlation between KBWD and SPY shifts across timeframes, from 0.50 (1 year) to 0.68 (all time), reflecting how their relationship changes across market environments.

KBWD vs. SPY - Sectors Allocation Comparison

Sectors	KBWD	SPY
Financial Services	60.8%	11.1%
Real Estate	39.2%	1.8%
Basic Materials	-	1.7%
Communication Services	-	10.6%
Consumer Cyclical	-	9.9%
Consumer Defensive	-	4.5%
Energy	-	3.1%
Healthcare	-	8.3%
Industrials	-	7.8%
Technology	-	39.0%
Utilities	-	2.1%

Return for Risk

KBWD vs. SPY — Risk / Return Rank

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

KBWD

KBWD Risk / Return Rank: 8
KBWD Sharpe Ratio Rank: 8
KBWD Sortino Ratio Rank: 8
KBWD Omega Ratio Rank: 8
KBWD Calmar Ratio Rank: 8
KBWD Martin Ratio Rank: 8

SPY

SPY Risk / Return Rank: 66
SPY Sharpe Ratio Rank: 66
SPY Sortino Ratio Rank: 64
SPY Omega Ratio Rank: 65
SPY Calmar Ratio Rank: 61
SPY Martin Ratio Rank: 72

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.

KBWD vs. SPY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco KBW High Dividend Yield Financial ETF (KBWD) and State Street SPDR S&P 500 ETF (SPY). 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	KBWD	SPY	Difference
Sharpe ratio: Return per unit of total volatility	-0.10	1.71	-1.81
Sortino ratio: Return per unit of downside risk	-0.03	2.37	-2.40
Omega ratio: Gain probability vs. loss probability	1.00	1.31	-0.31
Calmar ratio: Return relative to maximum drawdown	-0.10	2.43	-2.53
Martin ratio: Return relative to average drawdown	-0.23	10.57	-10.80

KBWD vs. SPY - Sharpe Ratio Comparison

The current KBWD Sharpe Ratio is -0.10, which is lower than the SPY Sharpe Ratio of 1.71. The chart below compares the historical Sharpe Ratios of KBWD and SPY, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

KBWD vs. SPY - Drawdown Comparison

The maximum KBWD drawdown since its inception was -58.63%, which is greater than SPY's maximum drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for KBWD and SPY.

Drawdown Indicators

	KBWD	SPY	Difference
Max Drawdown Largest peak-to-trough decline	-58.63%	-55.19%	-3.44%
Max Drawdown (1Y) Largest decline over 1 year	-15.05%	-8.88%	-6.17%
Max Drawdown (3Y) Largest decline over 3 years	-19.65%	-18.76%	-0.89%
Max Drawdown (5Y) Largest decline over 5 years	-30.74%	-24.50%	-6.24%
Max Drawdown (10Y) Largest decline over 10 years	-58.63%	-33.72%	-24.91%
Current Drawdown Current decline from peak	-10.50%	-1.12%	-9.38%
Average Drawdown Average peak-to-trough decline	-7.43%	-9.02%	+1.59%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.79%	2.03%	+4.76%

Volatility

KBWD vs. SPY - Volatility Comparison

The current volatility for Invesco KBW High Dividend Yield Financial ETF (KBWD) is 3.93%, while State Street SPDR S&P 500 ETF (SPY) has a volatility of 4.26%. This indicates that KBWD experiences smaller price fluctuations and is considered to be less risky than SPY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	KBWD	SPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.93%	4.26%	-0.33%
Volatility (6M) Calculated over the trailing 6-month period	12.53%	10.01%	+2.52%
Volatility (1Y) Calculated over the trailing 1-year period	15.67%	12.60%	+3.07%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.79%	17.17%	+2.62%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.24%	17.93%	+5.31%

KBWD vs. SPY - Expense Ratio Comparison

KBWD has a 5.39% expense ratio, which is higher than SPY's 0.09% expense ratio.

Dividends

KBWD vs. SPY - Dividend Comparison

KBWD's dividend yield for the trailing twelve months is around 14.21%, more than SPY's 1.00% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
KBWD Invesco KBW High Dividend Yield Financial ETF	14.21%	12.83%	12.45%	11.45%	11.32%	7.26%	9.68%	8.63%	9.47%	8.77%	8.68%	8.89%
SPY State Street SPDR S&P 500 ETF	1.00%	1.07%	1.21%	1.40%	1.65%	1.20%	1.52%	1.75%	2.04%	1.80%	2.03%	2.06%

Frequently Asked Questions

Can I hold both KBWD and SPY in my portfolio?

KBWD and SPY have a correlation of 0.50, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, KBWD or SPY?

SPY has higher volatility (4.26%) compared to KBWD (3.93%). In terms of maximum drawdown, KBWD dropped -58.63% vs SPY's -55.19%.

Which ETF is better, KBWD or SPY?

On 10-year performance, SPY leads with 15.08% vs 4.71% for KBWD. On fees, SPY is cheaper at 0.09% per year. On volatility, KBWD has been the lower-risk option at 3.93%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, KBWD or SPY?

Over the 10-year period, SPY has performed better with a 15.08% return vs 4.71%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, KBWD or SPY?

SPY is cheaper with a 0.09% expense ratio, compared with 5.39% for KBWD.

Which ETF pays a higher dividend yield, KBWD or SPY?

KBWD has the higher dividend yield at 14.21%, compared with 1.00% for SPY.

What is the main difference between KBWD and SPY?

KBWD is categorized as Financials Equities, while SPY is S&P 500. KBWD tracks KBW Nasdaq Financial Sector Dividend Yield Index, while SPY tracks S&P 500 Index. They also come from different issuers: Invesco and State Street. Their fees differ too: 5.39% for KBWD and 0.09% for SPY.

Which has better risk-adjusted returns?

SPY currently has the higher Sharpe Ratio (1.71 vs -0.10), 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.