AFB vs SPY
AFB vs SPY
AllianceBernstein National Municipal Income Fund Inc vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | AFB | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 1.56% | 0.09% | |
| AUM | $341M | $789.1B | |
| Dividend Yield | 4.67% | 1.01% | |
| Holdings | 175 | 505 | |
| YTD Return | +4.75% | +13.79% | |
| 1Y Return | +12.23% | +23.66% | |
| 3Y Return (annualized) | +6.79% | +21.40% | |
| 5Y Return (annualized) | -1.81% | +13.37% | |
| Volatility (annualized) | 12.8% | 15.3% | |
| Max Drawdown | -56.2% | -56.5% | |
| Fund Family | AllianceBernstein L.P. | State Street Investment Management | |
| Category | Tax Preferred | Equity | |
| Inception | Jan 28, 2002 | Jan 22, 1993 |
AFB vs SPY Performance
AllianceBernstein National Municipal Income Fund Inc (AFB) is a ETF from AllianceBernstein L.P. and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year AFB returned +12.23% while SPY returned +23.66%. Year to date, AFB is up 4.75% versus a gain of 13.79% for SPY.
Over three years, AFB compounded at +6.79% per year against +21.40% for SPY; over five years the annualized figures are -1.81% and +13.37% respectively. Across the full 25-year window we track, SPY has the edge at +8.85% annualized vs -0.30%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 12.8% for AFB. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -56.2% for AFB and -56.5% for SPY. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.24. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
AFB charges 1.56% per year while SPY charges 0.09%. On a $10,000 position that is $156 vs $9 annually, a gap of $147 per year that compounds over a long holding period. On income, AFB currently yields 4.67% against 1.01% for SPY.
Holdings Overlap
AFB and SPY share 0 holdings out of 582 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, AFB or SPY?
AFB has an expense ratio of 1.56% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $147 per year of difference.
Which performed better, AFB or SPY?
Over the past year AFB returned +12.23% vs +23.66% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (25 years), AFB annualized -0.30% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, AFB or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 12.8% for AFB. Worst drawdown: AFB -56.2% vs SPY -56.5%.
Should I hold both AFB and SPY?
AFB and SPY have a monthly-return correlation of 0.24, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between AFB and SPY?
AFB and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 582 unique securities.
Which pays a higher dividend, AFB or SPY?
AFB yields 4.67% while SPY yields 1.01%, so AFB currently pays the higher dividend yield.
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