CGMU vs SPY
Capital Group Municipal Income ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. CGMU offers more diversification with 1,810 holdings.
Side-by-Side Comparison
| Metric | CGMU | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.27% | 0.09% | |
| AUM | $6.6B | $821.1B | |
| Dividend Yield | 3.38% | 1.01% | |
| Holdings | 1,810 | 505 | |
| YTD Return | +0.82% | +12.68% | |
| 1Y Return | +4.56% | +21.82% | |
| 3Y Return (annualized) | +4.50% | +21.98% | |
| 5Y Return (annualized) | - | +12.89% | |
| Volatility (annualized) | 5.0% | 15.3% | |
| Max Drawdown | -4.1% | -56.5% | |
| Fund Family | Capital Group (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Oct 25, 2022 | Jan 22, 1993 |
CGMU vs SPY Performance
Capital Group Municipal Income ETF (CGMU) is a ETF from Capital Group (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year CGMU returned +4.56% while SPY returned +21.82%. Year to date, CGMU is up 0.82% versus a gain of 12.68% for SPY.
Over three years, CGMU compounded at +4.50% per year against +21.98% for SPY. Across the full 4-year window we track, SPY has the edge at +8.81% annualized vs +5.25%. 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 5.0% for CGMU. 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 -4.1% for CGMU 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
CGMU charges 0.27% per year while SPY charges 0.09%. On a $10,000 position that is $27 vs $9 annually, a gap of $18 per year that compounds over a long holding period. On income, CGMU currently yields 3.38% against 1.01% for SPY.
Holdings Overlap
CGMU and SPY share 0 holdings out of 902 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, CGMU or SPY?
CGMU has an expense ratio of 0.27% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $18 per year of difference.
Which performed better, CGMU or SPY?
Over the past year CGMU returned +4.56% vs +21.82% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (4 years), CGMU annualized +5.25% vs +8.81% for SPY. Past performance does not guarantee future results.
Which is riskier, CGMU or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 5.0% for CGMU. Worst drawdown: CGMU -4.1% vs SPY -56.5%.
Should I hold both CGMU and SPY?
CGMU and SPY have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between CGMU and SPY?
CGMU and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 902 unique securities.
Which pays a higher dividend, CGMU or SPY?
CGMU yields 3.38% while SPY yields 1.01%, so CGMU currently pays the higher dividend yield.
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