CMF vs SPY

Quick Verdict

CMF has a lower expense ratio. SPY delivered stronger 1-year returns. CMF offers more diversification with 517 holdings.

Lower Fees: CMFHigher Returns: SPYMore Diversified: CMF

Side-by-Side Comparison

MetricCMFSPYWinner
Expense Ratio0.08%0.09%
AUM$4.6B$789.1B
Dividend Yield2.94%1.01%
Holdings1,595505
YTD Return+0.22%+13.75%
1Y Return+4.79%+22.91%
3Y Return (annualized)+3.06%+21.67%
5Y Return (annualized)+0.43%+13.32%
Volatility (annualized)5.6%15.3%
Max Drawdown-22.8%-56.5%
Fund FamilyiShares by BlackRock (US)State Street Investment Management
CategoryTax PreferredEquity
InceptionOct 4, 2007Jan 22, 1993

CMF vs SPY Performance

iShares California Municipal Bond ETF (CMF) is a ETF from iShares by BlackRock (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year CMF returned +4.79% while SPY returned +22.91%. Year to date, CMF is up 0.22% versus a gain of 13.75% for SPY.

Over three years, CMF compounded at +3.06% per year against +21.67% for SPY; over five years the annualized figures are +0.43% and +13.32% respectively. Across the full 19-year window we track, SPY has the edge at +8.85% annualized vs +1.17%. 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 5.6% for CMF. 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 -22.8% for CMF 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 0.28. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

CMF charges 0.08% per year while SPY charges 0.09%. On a $10,000 position that is $8 vs $9 annually, a gap of $1 per year that compounds over a long holding period. On income, CMF currently yields 2.94% against 1.01% for SPY.

Holdings Overlap

0.0%overlap

CMF and SPY share 0 holdings out of 1020 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, CMF or SPY?

CMF has an expense ratio of 0.08% while SPY charges 0.09%. CMF is the cheaper option. On a $10,000 investment, that is $1 per year of difference.

Which performed better, CMF or SPY?

Over the past year CMF returned +4.79% vs +22.91% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (19 years), CMF annualized +1.17% vs +8.85% for SPY. Past performance does not guarantee future results.

Which is riskier, CMF or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 5.6% for CMF. Worst drawdown: CMF -22.8% vs SPY -56.5%.

Should I hold both CMF and SPY?

CMF and SPY have a monthly-return correlation of 0.28, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between CMF and SPY?

CMF and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1020 unique securities.

Which pays a higher dividend, CMF or SPY?

CMF yields 2.94% while SPY yields 1.01%, so CMF currently pays the higher dividend yield.

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