BSMT vs SPY

BSMT vs SPY

Which is better, BSMT or SPY?

Municipal Bond against Large Cap Blend.

SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window.

Lower Fees: SPYHigher Returns: SPY

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricBSMTSPY
Expense Ratio0.18%0.09%Best
AUM$289M$804.7B
Dividend Yield2.74%0.98%
Holdings1,834505
YTD Return-0.37%+12.22%Best
1Y Return+0.16%+16.97%Best
3Y Return (annualized)+2.85%+21.16%Best
5Y Return (annualized)-0.47%+13.00%Best
Volatility (annualized)6.3%Best16.6%
Max Drawdown-16.2%Best-34.1%
$10,000 over 5 years$9,767$18,424Best
Fund FamilyInvesco (US)State Street Investment Management
CategoryFixed IncomeEquity
StyleMunicipal BondLarge Cap Blend
InceptionSep 25, 2019Jan 22, 1993

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Sep 25, 2019 to Sep 17, 2026 (7 years).

BSMT vs SPY growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.

BSMT vs SPY Performance

Invesco BulletShares 2029 Municipal Bond ETF (BSMT) is an ETF from Invesco (US) and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year BSMT returned +0.16% while SPY returned +16.97%. Year to date, BSMT is down 0.37% versus a gain of 12.22% for SPY.

Over three years, BSMT compounded at +2.85% per year against +21.16% for SPY; over five years the annualized figures are -0.47% and +13.00% respectively. Across the full 7-year window we track, SPY has the edge at +15.66% annualized vs +0.38%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SPY has been the more volatile fund, with annualized monthly volatility of 16.6% compared with 6.3% for BSMT. 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 -16.2% for BSMT and -34.1% for SPY. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.57. They move together some of the time, and apart the rest.

Fees and Cost Over Time

BSMT charges 0.18% per year while SPY charges 0.09%. On a $10,000 position that is $18 vs $9 annually, a gap of $9 per year that compounds over a long holding period. On income, BSMT currently yields 2.74% against 0.98% for SPY.

Holdings Overlap

We hold position weights for 534 holdings in BSMT and 504 in SPY, totalling 27.5% and 99.9% of the two funds. The two books name no position in common, so there is no overlap percentage to show.

0 positions in common, counted across the 534 positions we hold weights for in BSMT and 504 in SPY, against full books of 1,834 and 505.

You are not choosing between two funds in isolation.

Whichever of BSMT and SPY you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

BSMTSPY

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, BSMT or SPY?

BSMT has an expense ratio of 0.18% while SPY charges 0.09%. SPY is the cheaper option, by $9 a year on a $10,000 investment.

Which performed better, BSMT or SPY?

Over the past year BSMT returned +0.16% vs +16.97% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (7 years), BSMT annualized +0.38% vs +15.66% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, BSMT or SPY?

SPY has been the more volatile fund at 16.6% annualized versus 6.3% for BSMT. Worst drawdown: BSMT -16.2% vs SPY -34.1%.

Should I hold both BSMT and SPY?

BSMT and SPY have a monthly-return correlation of 0.57, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

Which pays a higher dividend, BSMT or SPY?

BSMT yields 2.74% while SPY yields 0.98%, so BSMT currently pays the higher dividend yield.

Is SPY better than BSMT?

SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.