ETF Comparison

KWEB vs SPY: Which Is the Better Pick in 2026?

A head-to-head comparison of KraneShares CSI China Internet ETF and SPDR S&P 500 ETF Trust covering yield, cost, risk, and income potential.

Updated October 9, 2026

How these figures are calculated: methodology.

Best for

KWEBInvestors who want higher current income (8.41% vs 0.97% for SPY).
SPYInvestors who want simple, diversified core exposure in one low-cost fund.

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Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

100% reinvested · ex-date convention. Period returns use this fixed assumption, independent of chart settings. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year.

KWEB has lagged SPY over the trailing twelve months, posting a -37.46% total return against 16.92%. The lead holds up over 10 years too: SPY has compounded at 15.49% a year, against -3.00% for KWEB. SPY has been the steadier holding, though — annualized volatility of 15.2% against 33.7% for KWEB. Figures are total returns: price change plus every distribution reinvested.

Total return and risk statistics by fund. Each row is one fund; each column is one period or statistic.
Symbol	YTD cumulative	1Y cumulative	3Y annualized	5Y annualized	10Y annualized	Since Aug 2013	Volatility	Sharpe	Sortino	Max drawdown
KWEB	-30.03%	-37.46%	0.33%	-9.83%	-3.00%	1.52%	33.7%	-0.12	-0.18	-41.6%
SPY	14.85%	16.92%	23.14%	13.71%	15.49%	14.11%	15.2%	1.08	1.58	-18.8%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of October 9, 2026. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year. “Since Aug 2013” measures every fund from August 1, 2013 — the start of shared available history — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
Metric	KWEB	SPY
Full name	KraneShares CSI China Internet ETF	SPDR S&P 500 ETF Trust
Issuer	KraneShares	State Street
Underlying index	CSI Overseas China Internet Index	S&P 500 Index
Last Close	$24.93 as of October 9, 2026	$778.57 as of October 9, 2026
Distribution rate	8.41%	0.97%
Trailing 12-month yield	8.41%	0.97%
Distribution Safety Score™	79	100
Safety-Adjusted Yield	6.64%	0.97%
Expense ratio	0.69%	0.0945%
AUM	$4.38B	$815B
Distribution frequency	Annual	Quarterly
Objective	Seeks to provide investment results that correspond to the price and yield performance of the CSI Overseas China Internet Index.	Track the S&P 500 Index before expenses.
Asset class	Equity	Equity
Inception date	07/31/2013	01/22/1993
Beta	0.73	1.0
Last dividend	$2.096	$1.88883
Ex-dividend date	12/22/2025	09/18/2026

Bottom lineChoose KWEB if you want higher current income (8.41% vs 0.97% for SPY). Choose SPY if you want simple, diversified core exposure in one low-cost fund.

Model this comparison:

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Income calculator

See how much monthly income a hypothetical investment would generate in each ETF at current yields.

KraneShares

ETFs37

Total AUM$8.48B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

KraneShares is known for pioneering thematic and alternative ETF strategies that capture emerging trends and specialized market segments. The issuer's fund lineup spans income-focused strategies, including covered call and high-yield approaches, alongside thematic funds targeting areas like artificial intelligence, cryptocurrency, cannabis, and other innovative sectors. KraneShares distinguishes itself through a diversified portfolio of specialized ETFs designed for investors seeking exposure beyond traditional asset classes, with a particular emphasis on capturing opportunities in evolving industries and alternative income generation strategies.

See our curated list of related YouTube videos on KWEB.

See all KraneShares ETFs

State Street

ETFs179

Total AUM$2144B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

State Street Global Advisors (SSGA) is one of the largest ETF providers globally, known for its flagship SPDR suite of exchange-traded products that serve both institutional and retail investors across a broad range of asset classes. Their 88-fund lineup spans diverse strategies including sector exposure (Select Sector SPDR), income generation (Income and Select Sector SPDR Premium Income families), commodities (including the widely-held GLD gold ETF), bonds, ESG-focused investments, and thematic allocations, with popular tickers like DIA (Diamonds Trust), FEZ (Eurozone exposure), and JNK (high-yield bonds) among their most recognized funds. The issuer is characterized by its comprehensive coverage across multiple market segments and its emphasis on both traditional index-based products and specialized strategies like covered call income funds and factor-based investing.

See our curated list of related YouTube videos on SPY.

See all State Street ETFs

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Quick verdict

KWEB (KraneShares CSI China Internet ETF) and SPY (SPDR S&P 500 ETF Trust) are both dividend ETFs, but they take different approaches.

KWEB offers the higher yield at 8.41% vs 0.97% for SPY. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

SPY is cheaper with an expense ratio of 0.0945% compared to 0.69%.

They have different reference exposures: KWEB is linked to CSI Overseas China Internet Index while SPY is linked to S&P 500 Index, which means their performance drivers differ.

SPY is the larger fund by assets ($815B), but assets alone do not establish trading costs or liquidity.

Who should choose each?

Choose KWEB

KraneShares CSI China Internet ETF

Want higher current income — KWEB yields 8.41% vs 0.97% for SPY.
Want broad equity exposure.
Prefer lower volatility — a beta of 0.7 vs 1.0 for SPY.

Choose SPY

SPDR S&P 500 ETF Trust

Want simple, diversified core exposure as a portfolio building block.
Want to keep costs low — a 0.0945% expense ratio vs 0.69% for KWEB.

Not sure? Use the income calculator and snapshot above to weigh these trade-offs against your own goals.

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Deep dive

Yield & income

On a $10,000 investment, KWEB would generate roughly $841.00 cash per distribution, while SPY would produce $24.25 cash per distribution, at current distribution rates.

KWEB yield8.41%

SPY yield0.97%

Cash diff on $10K$816.75

Cost & efficiency

Over 10 years on $10,000, KWEB would cost approximately $690 in fees vs $95 for SPY (simplified, not compounded). The $595.50 difference may be offset by yield or performance.

KWEB ER0.69%

SPY ER0.0945%

Strategy & risk

KWEB tracks CSI Overseas China Internet Index with an international approach, while SPY tracks S&P 500 Index with a large cap approach. Beta is 0.73 for KWEB and 1.0 for SPY, making KWEB the less volatile of the two by this measure.

KWEB beta0.73

SPY beta1.0

Fund details

KWEB is managed by KraneShares (launched 07/31/2013) with $4.38B in assets. SPY is managed by State Street (launched 01/22/1993) with $815B in assets.

KWEB AUM$4.38B

SPY AUM$815B

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Frequently asked questions

What is the current distribution rate for KWEB and SPY?

KWEB currently distributes 8.41% and SPY 0.97%, based on fund data updated October 2026. Distribution rate moves with both the payout and the share price, so check the as-of date before relying on either figure.

Is KWEB or SPY better for dividend income?

It depends on your goals. KWEB currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

What is the difference between KWEB and SPY?

KWEB (KraneShares CSI China Internet ETF) tracks CSI Overseas China Internet Index with an international approach, while SPY (SPDR S&P 500 ETF Trust) tracks S&P 500 Index with a large cap approach. They are issued by KraneShares and State Street respectively.

Can I hold both KWEB and SPY?

Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.

Is KWEB or SPY safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — SPY scores 100, KWEB scores 79, so SPY's payout currently looks the more resilient of the two. KWEB has also shown lower price volatility (beta 0.73 vs 1.00 for SPY). No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

Which has lower fees, KWEB or SPY?

KWEB has an expense ratio of 0.69% while SPY charges 0.0945%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in KWEB vs SPY generate?

At current rates, $10,000 in KWEB would generate roughly $841.00 cash per distribution ($841.00 annually). The same in SPY would produce about $24.25 cash per distribution ($97.00 annually).

Which has performed better historically, KWEB or SPY?

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Dividend dates and history

KWEB vs SPY — at a glance

Generated October 10, 2026.

The comparison pits a concentrated, growth-tilted international play against the foundational US equity benchmark — two fundamentally different geographic and thematic exposures.

How they differ

The first and biggest difference is geographic: KWEB holds Chinese internet stocks (primarily Alibaba, Tencent, Pinduoduo, and similar names), while SPY holds 500 large US companies across all sectors.

Who each is best for

KWEB: Fits investors seeking concentrated exposure to Chinese internet and technology growth, willing to accept currency risk, geopolitical uncertainty, and single-region concentration for the possibility of higher capital appreciation and dividends than broad US equity.

SPY: Designed for investors building a core holding in diversified US large-cap equities — those prioritizing low cost, broad sector and company diversification, and deep liquidity as the anchor of a long-term portfolio.

Key risks to know

China regulatory and political risk. KWEB holds companies subject to Chinese government scrutiny on data, antitrust, and capital controls. Regulatory shifts can drive sudden drawdowns independent of business fundamentals or global market moves.

Currency exposure. KWEB's underlying stocks trade in Chinese yuan and Hong Kong dollars. A strengthening US dollar reduces returns to dollar-based investors without any change in the companies' performance.

Concentration and single-sector volatility. KWEB is dominated by a handful of mega-cap internet names. A downturn in tech or a sell-off in any of the top three holdings can move the entire fund sharply; SPY's 500-company breadth absorbs individual stock shocks.

Beta and drawdown asymmetry. KWEB's 0.73 beta suggests lower volatility than the market in calm periods, but Chinese tech stocks have experienced drawdowns of 30–50% in recent years without corresponding SPY weakness, indicating beta alone understates tail risk.

Distribution sustainability at elevated yields. KWEB's 8.41% yield is unusually high for an equity index ETF and warrants examination of whether it reflects genuine underlying earnings growth or increasing reliance on return-of-capital treatment.

Bottom line

If you want broad US diversification, low cost, and deep liquidity, SPY remains the foundational choice; if you're seeking growth and higher income from Chinese tech specifically and can tolerate geopolitical, currency, and concentration risk, KWEB offers a thematic alternative. Neither is a substitute for the other — they serve different portfolio roles. Past performance does not guarantee future results.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.

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These comparisons follow the Dividend Vision methodology.