SPDR S&P Capital Markets ETF

SPDR S&P Capital Markets ETF (KCE), from State Street, tracks the S&P Capital Markets Select Industry Index: U.S. broker-dealers, asset managers, custody banks and exchanges. The index gives its 65 stocks roughly equal weights, so Robinhood, the largest holding, was just 1.86% of assets as of June 30, 2026. Its 0.35% expense ratio is above the 0.29% average of similar funds, and the fund has swung sharply in past downturns.

• Over the year to Oct 27, 2026, KCE returned +2.7%, 7th of 8 among similar funds.
• Its 5-year annualized return was +10.2% and its 10-year +17.0%.
• In the 2020 COVID crash it fell 40.8% and regained its old high 6.7 months after the low.
• Its worst full calendar year was 2008 (-60.2%); its best was 2013 (+49.9%).
• The deepest fall in its price history was 74% (Jun 21, 2007 to Nov 20, 2008), recovered by Jan 5, 2018.

As of Jun 30, 2026, the fund held 66 securities; the ten largest made up 17.13% of assets.

• Over the three months to Jun 30, 2026, investors withdrew a net $25.7M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +10.49%, -0.14%, -2.59%.

KCE tracks the S&P Capital Markets Select Industry Index, built by S&P Dow Jones Indices. The index starts with the S&P Total Market Index, which covers the broad U.S. stock market. It then keeps only U.S. companies in four groups: asset management and custody banks, diversified capital markets, financial exchanges and data, and investment banking and brokerage. These groups come from the Global Industry Classification Standard (GICS), a system that sorts companies mainly by where their revenue comes from. Each company must also meet size and trading-volume tests. A stock is generally removed if its market value falls below $300 million. The index held 65 stocks as of July 31, 2026.

The index is "modified equal weighted." That means each stock gets a roughly similar share instead of a share based on company size. As a result, smaller firms such as Perella Weinberg and Virtu Financial carried about as much weight as Goldman Sachs and Charles Schwab as of June 30, 2026. The index rebalances and reconstitutes every quarter, so weights that have drifted are reset and stocks are added or removed.

State Street's adviser, SSGA Funds Management, may hold only a representative sample of the index rather than every stock. It keeps at least 80% of assets in index stocks. It may use futures and cash to manage money flowing in and out. Portfolio turnover was 29% in the period the prospectus reports.

• KCE charges 0.35% a year, versus an average of 0.29% for the similar funds below (4th of 8, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $36 in the first year and $443 over 10 years (assuming a 5% annual return).

KCE is a narrow bet on one part of the financial sector, and its declines have been far deeper than the broad market's.

KCE could add a focused position in brokers, asset managers, custody banks and exchanges. Its losses have been severe, though. In the 2008 financial crisis it fell 73.6%. Its worst calendar year was 2008, down 60.2%. Its deepest drop was 74%, from June 2007 to November 2008, and it did not regain that peak until January 2018, about nine years later. It fell 40.8% in the 2020 COVID crash but recovered in about seven months. In 2022 it fell 31.4% and took about 18 months to recover. Anyone who has to sell shares or take income in a bad year could lock in deep losses. Income is modest: the trailing yield was 1.77% as of October 27, 2026, paid quarterly. Costs come to $36 in the first year on $10,000 under the SEC's standard example. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.