At a glance
KSPY charges 0.88% a year, above the 0.86% average of the 7 funds most like it (the 6th cheapest of 8). It has $103.8M in assets, the 8th largest of that group; it paid 5.58% of its price in distributions over the past 12 months, annual. Over the past year it returned +11.6% with distributions reinvested (S&P 500: +11.5%), 4th of those 8 funds.
The short version
KraneShares Hedgeye Hedged Equity Index ETF (KSPY) tracks the Hedgeye Hedged Equity Index. It holds an S&P 500 ETF and adds S&P 500 put and call options on top. Hedgeye's proprietary Risk Range signals decide when to buy downside protection and when to sell away some upside, with the goal of a smoother ride than the S&P 500 alone. The trade-off is a 0.88% expense ratio and lower returns than the S&P 500 since its July 2024 launch.
Price history
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KSPY +11.6% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| KSPY official prospectus, to Dec 31, 2025 | — | +14.28% | — | — | — | +12.29% |
| S&P 500 Index (Reflects no deduction for fees, expenses or taxes) index, same period | — | +17.88% | — | — | — | +15.77% |
| Hedgeye Hedged Equity Index (Reflects no deduction for fees, expenses or taxes) index, same period | — | +15.96% | — | — | — | +13.93% |
| KSPY price data to Oct 27, 2026 | +10.3% | +11.6% | — | — | — | +12.3% |
- Over the year to Oct 27, 2026, KSPY returned +11.6%, 4th of 8 among similar funds.
- Its worst full calendar year was 2025 (+13.9%); its best was 2025 (+13.9%).
- The deepest fall in its price history was 11.7% (Feb 19, 2025 to Apr 8, 2025), recovered by Jun 25, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +10.3% | — |
| 2025 | +13.9% | +14.28% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2025 | $1.6900 |
What's inside
As of Jun 30, 2026, the fund held 1 securities; the ten largest made up 100.05% of assets.
| Fund held | Weight | |
|---|---|---|
| STATE STREET SPDR S&P 500 ETF TRUST MUTUAL FUND | 100.05% |
By country
United States 100.05%By asset type
Stocks 100.05%What changed recently
- Over the three months to Jun 30, 2026, investors added a net $21.3M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +1.04%, +2.19%, +3.32%.
How it works
The fund follows the Hedgeye Hedged Equity Index. Hedgeye Asset Management creates the index and Solactive AG calculates it. The index models owning the S&P 500 while buying and selling put options and selling call options on it. A put option gains value when the market falls below a set price, called the strike. Selling a call option brings in cash, called a premium, but gives up gains above its strike. Hedgeye's Risk Range signals are proprietary estimates of market entry and exit points. They decide which options to trade and at which strikes.
As of June 30, 2026, the fund's stock exposure came almost entirely from one holding: the SPDR S&P 500 ETF Trust, at about 100% of assets. On top of that sat three option positions expiring July 17, 2026. These were a long S&P 500 put with a 7,380 strike, a short put at 7,305, and a short FLEX option on the SPDR S&P 500 ETF Trust. Buying one put and selling a lower one costs less than a single put. But it only protects against the drop between the two strikes.
Option positions change whenever the signal changes, which can happen daily, and when options are within 7 calendar days of expiring. The fund may weight and time its options differently from the index. It is non-diversified and had 30% portfolio turnover.
What it really costs
- KSPY charges 0.88% a year, versus an average of 0.86% for the similar funds below (6th of 8, cheapest first).
- Of that, 0.78% is the management fee; the rest covers other fund expenses.
- Using the prospectus's standard example, $10,000 invested would cost about $90 in the first year and $1,084 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| KSPY | $90 | $281 | $488 | $1,084 |
Structure and tax notes
- Generates much of its income from selling options (directly or through notes). That income is usually taxed as ordinary income rather than as qualified dividends, and the strategy gives up some upside in strong markets.
- Invests in other funds rather than directly in stocks or bonds, so its holdings are those funds.
In a retirement portfolio
KSPY uses options to reduce the S&P 500's swings, and over the year to October 27, 2026 it moved about half as much as the market.
KSPY aims to soften stock market drops while keeping much of the upside. Its record is short. It launched in July 2024, so it has no record from the 2008, 2020 or 2022 sell-offs. Its deepest fall was 11.7%, from February 19 to April 8, 2025. It recovered by June 25, 2025, about 2.6 months later. Over the year to October 27, 2026, it moved about half as much as the market (a beta of 0.52). Smaller drops may help someone who has to sell shares in a bad year, but the hedge is only partial. The trailing yield was 5.58% as of October 27, 2026, paid once a year. Options income is usually taxed as ordinary income. Costs are 0.88% a year, or $1,084 over 10 years on $10,000 in the SEC example. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors wanting S&P 500 exposure with smaller swings: one-year volatility was 7.7% and beta 0.52 as of October 27, 2026.
- People comfortable relying on Hedgeye's proprietary Risk Range signals to decide when to buy put protection and sell calls.
- Holders who can work with one distribution a year, which equaled a 5.58% trailing yield as of October 27, 2026.
Look elsewhere if
- Cost-focused investors: the 0.88% expense ratio is far above plain S&P 500 index funds and above the 0.86% average of compared funds.
- Investors wanting full market gains: through December 31, 2025, it returned 12.29% a year since inception, versus 15.77% for the S&P 500.
- Those wanting a long record or a large fund: it launched in July 2024 and had about $104 million in net assets as of June 30, 2026.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| KSPY this fund | 0.88% | $103.8M | +11.6% | — |
| BUFR FT Vest Laddered Buffer ETF | 0.95% | $10.49B | +11.6% | +16.8% |
| BUFD FT Vest Laddered Deep Buffer ETF | 0.95% | $2.04B | +9.5% | +13.9% |
| PJAN Innovator U.S. Equity Power Buffer ETF - Ja… | 0.79% | $1.44B | +10.5% | +14.8% |
| PDEC Innovator U.S. Equity Power Buffer ETF - De… | 0.79% | $984.1M | +11.6% | +14.9% |
| FDEC FT Vest US Equity Buffer ETF - December | 0.85% | $1.31B | +12.9% | +18.5% |
| FJAN FT Vest US Equity Buffer ETF - January | 0.85% | $1.47B | +12.3% | +17.4% |
| FFEB FT Vest U.S. Equity Buffer Fund - February | 0.85% | $1.42B | +12.9% | +18.6% |
Questions investors ask
Does KSPY protect against a stock market crash?
Only partly. KSPY buys S&P 500 put options to cushion falls. As of June 30, 2026, it held a put spread, which protects only against the drop between two strike prices. The signals can also change or reduce the hedge, and selling puts can weaken protection. The fund launched in July 2024, so it has never faced a crash like 2008 or 2020. Its deepest drop was 11.7%, from February to April 2025, and it recovered by June 25, 2025.
Does KSPY pay dividends?
Yes, but only once a year. Over the 12 months to October 27, 2026, it paid $1.69 per share, a trailing yield of 5.58%. Much of the fund's income comes from selling options. That income is usually taxed as ordinary income rather than at the lower qualified-dividend rate. Annual payments are lumpy, so they may not suit someone looking for steady monthly cash.
What's the difference between KSPY and BUFR?
They use different approaches. FT Vest Laddered Buffer ETF (BUFR) is a defined-outcome buffer fund. KSPY instead adjusts its options whenever Hedgeye's Risk Range signals change. BUFR charges 0.95% a year versus KSPY's 0.88%. Both returned 11.6% over the year to October 27, 2026. BUFR is much larger, with about $10.5 billion in net assets as of August 31, 2026, compared with about $104 million for KSPY as of June 30, 2026. The two are worth comparing, but they are not substitutes.
How has KSPY performed compared with the S&P 500?
It has trailed the S&P 500. In 2025 the fund returned 14.28%, compared with 17.88% for the S&P 500 and 15.96% for its own index. From launch through December 31, 2025, it returned 12.29% a year, versus 15.77% for the S&P 500. The gap reflects the cost of hedging, the upside given up by selling calls, and fees. Its share price rose 11.6% over the year to October 27, 2026.
What is the Hedgeye Risk Range signal in KSPY?
It is Hedgeye's proprietary model that suggests market entry and exit points. KSPY's index uses it to decide when to buy and sell options and at which strikes. The prospectus flags several risks. Publishing the signals depends heavily on the manual work of one person, Hedgeye's CEO and founder. Other subscribers receive the same signals. The index provider is also affiliated with the fund's adviser, which creates potential conflicts of interest.