SCEP vs. KSPY

Last updated Jun 5, 2026

SCEP (Sterling Capital Hedged Equity Premium Income ETF) and KSPY (Kraneshares Hedgeye Hedged Equity Index ETF) are both Equity Hedged funds. SCEP is actively managed, while KSPY is passively managed. Their correlation of 0.82 suggests significant overlap in exposure. SCEP charges 0.65%/yr vs 0.78%/yr for KSPY.

Performance

SCEP vs. KSPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Sterling Capital Hedged Equity Premium Income ETF (SCEP) 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, SCEP achieves a 4.03% return, which is significantly lower than KSPY's 5.54% return.

SCEP

• 1D: 0.11%
• 1M: 1.81%
• YTD: 4.03%
• 6M: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

KSPY

• 1D: 0.10%
• 1M: 1.61%
• YTD: 5.54%
• 6M: 5.98%
• 1Y: 18.08%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

SCEP vs. KSPY - Yearly Performance Comparison

	2026 (YTD)	2025
SCEP Sterling Capital Hedged Equity Premium Income ETF	4.03%	-0.50%
KSPY Kraneshares Hedgeye Hedged Equity Index ETF	5.54%	-0.10%

Correlation

The correlation between SCEP and KSPY is 0.82, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (All Time) Calculated using the full available price history since Dec 12, 2025	0.82

Return for Risk

SCEP vs. KSPY — Risk / Return Rank

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

KSPY

KSPY Risk / Return Rank: 86
KSPY Sharpe Ratio Rank: 81
KSPY Sortino Ratio Rank: 85
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.

SCEP vs. KSPY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Sterling Capital Hedged Equity Premium Income ETF (SCEP) 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.

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

Sharpe Ratios by Period

	SCEP	KSPY	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	—	2.60	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.78	1.17	-0.39

Drawdowns

SCEP vs. KSPY - Drawdown Comparison

The maximum SCEP drawdown since its inception was -7.25%, smaller than the maximum KSPY drawdown of -11.67%. Use the drawdown chart below to compare losses from any high point for SCEP and KSPY.

Drawdown Indicators

	SCEP	KSPY	Difference
Max Drawdown Largest peak-to-trough decline	-7.25%	-11.67%	+4.42%
Max Drawdown (1Y) Largest decline over 1 year	—	-4.46%	—
Current Drawdown Current decline from peak	-0.05%	-0.17%	+0.12%
Average Drawdown Average peak-to-trough decline	-1.57%	-1.18%	-0.39%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	0.83%	—

Volatility

Volatility by Period

	SCEP	KSPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	0.66%	—
Volatility (6M) Calculated over the trailing 6-month period	—	5.51%	—
Volatility (1Y) Calculated over the trailing 1-year period	9.82%	6.99%	+2.83%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	9.82%	10.52%	-0.70%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	9.82%	10.52%	-0.70%

SCEP vs. KSPY - Expense Ratio Comparison

SCEP has a 0.65% expense ratio, which is lower than KSPY's 0.78% expense ratio.

Dividends

SCEP vs. KSPY - Dividend Comparison

SCEP's dividend yield for the trailing twelve months is around 3.24%, less than KSPY's 5.84% yield.

Position	TTM	2025	2024
KSPY Kraneshares Hedgeye Hedged Equity Index ETF	5.84%	6.16%	1.31%
SCEP Sterling Capital Hedged Equity Premium Income ETF	3.24%	0.38%	0.00%

Frequently Asked Questions

Can I hold both SCEP and KSPY in my portfolio?

SCEP and KSPY have a correlation of 0.82, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, SCEP or KSPY?

On fees, SCEP is cheaper at 0.65% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, SCEP or KSPY?

SCEP is cheaper with a 0.65% expense ratio, compared with 0.78% for KSPY.

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

KSPY has the higher dividend yield at 5.84%, compared with 3.24% for SCEP.

What is the main difference between SCEP and KSPY?

They also come from different issuers: Sterling Capital and KraneShares. Their fees differ too: 0.65% for SCEP and 0.78% for KSPY.