KCE: STATE STREET(R) SPDR(R) S&P(R) CAPITAL MARKETS ETF
ETF Education Report: KCE
What this ETF is trying to do
The State Street(R) SPDR(R) S&P(R) Capital Markets ETF (Ticker: KCE) is an exchange-traded fund that focuses on companies within the capital markets sector. It holds a variety of different companies, such as WisdomTree Inc and MarketAxess Holdings Inc, to provide exposure to this part of the market.
What the numbers show
When looking at an ETF, it is important to understand two different types of returns: price return and total return.
• Price Return: This measures only the change in the share price. For KCE, the year-to-date (YTD) price return is approximately 7.14%. The one-year price return was about 2.56%, and the three-year price return was approximately 83.30%.
• Total Return: This includes the share price change plus any cash distributions (dividends) paid out. KCE's YTD total return is approximately 8.56%, its one-year total return was about 4.77%, and its three-year total return was approximately 93.58%.
To visualize the price change, we can look at an estimated price from roughly one year ago, which was $156.62. The current price is $160.63.
Income and distribution explanation
Some investors look for ETFs that pay out cash, known as distributions. KCE has a distribution yield of approximately 2.01%. This means the cash paid out is about 2.01% of the ETF's price. Over the last 12 months, there were 5 payouts. While these distributions provide cash income, they are separate from the total return of the investment.
NAV erosion explanation
"NAV erosion" refers to a situation where the value of the underlying assets in the fund decreases significantly. StockValueFinder uses an erosion-risk score to measure this risk. KCE has an erosion score of 94, which is labeled as "Stable / sideways," and its erosion severity is rated as "good." There is no severe erosion-risk flag for this ETF.
Pros
• The fund shows a history of positive total returns over one, three, and five years.
• The erosion-risk score suggests the fund is currently stable.
Cons
• The distribution yield is relatively modest at approximately 2.01%.
• As with all ETFs, the value of your investment can change based on market movements.
Beginner takeaway
KCE tracks companies in the capital markets sector. When studying this ETF, remember that the price return only tells you how the share price moved, while the total return shows a more complete picture by including distributions. Always look at both numbers to understand how an ETF has performed.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | WISDOMTREE INC | WT | 2.01% |
| 2 | MARKETAXESS HOLDINGS INC | MKTX | 1.96% |
| 3 | HAMILTON LANE INC CLASS A | HLNE | 1.95% |
| 4 | VICTORY CAPITAL HOLDINGS INC CLASS A | VCTR | 1.88% |
| 5 | TPG INC ORDINARY SHARES CLASS A | TPG | 1.82% |
| 6 | n/a | OWL | 1.81% |
| 7 | DONNELLEY FINANCIAL SOLUTIONS INC | DFIN | 1.80% |
| 8 | LPL FINANCIAL HOLDINGS INC | LPLA | 1.79% |
| 9 | FACTSET RESEARCH SYSTEMS INC | FDS | 1.76% |
| 10 | SEI INVESTMENTS CO | SEIC | 1.75% |