DSM vs SPY
BNY Mellon Strategic Municipal Bond 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 | DSM | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 1.09% | 0.09% | |
| AUM | $365M | $789.1B | |
| Dividend Yield | 4.47% | 1.01% | |
| Holdings | 229 | 505 | |
| YTD Return | -2.23% | +13.39% | |
| 1Y Return | +9.80% | +22.52% | |
| 3Y Return (annualized) | +6.27% | +21.36% | |
| 5Y Return (annualized) | -2.66% | +13.19% | |
| Volatility (annualized) | 12.8% | 15.3% | |
| Max Drawdown | -59.3% | -56.5% | |
| Fund Family | BNY Mellon Investment Management | State Street Investment Management | |
| Category | Tax Preferred | Equity | |
| Inception | Nov 22, 1989 | Jan 22, 1993 |
DSM vs SPY Performance
BNY Mellon Strategic Municipal Bond Fund Inc (DSM) is a ETF from BNY Mellon Investment Management and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year DSM returned +9.80% while SPY returned +22.52%. Year to date, DSM is down 2.23% versus a gain of 13.39% for SPY.
Over three years, DSM compounded at +6.27% per year against +21.36% for SPY; over five years the annualized figures are -2.66% and +13.19% respectively. Across the full 31-year window we track, SPY has the edge at +8.84% annualized vs -0.68%. 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 DSM. 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 -59.3% for DSM 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
DSM charges 1.09% per year while SPY charges 0.09%. On a $10,000 position that is $109 vs $9 annually, a gap of $100 per year that compounds over a long holding period. On income, DSM currently yields 4.47% against 1.01% for SPY.
Holdings Overlap
DSM and SPY share 0 holdings out of 634 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, DSM or SPY?
DSM has an expense ratio of 1.09% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $100 per year of difference.
Which performed better, DSM or SPY?
Over the past year DSM returned +9.80% vs +22.52% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (31 years), DSM annualized -0.68% vs +8.84% for SPY. Past performance does not guarantee future results.
Which is riskier, DSM or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 12.8% for DSM. Worst drawdown: DSM -59.3% vs SPY -56.5%.
Should I hold both DSM and SPY?
DSM 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 DSM and SPY?
DSM and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 634 unique securities.
Which pays a higher dividend, DSM or SPY?
DSM yields 4.47% while SPY yields 1.01%, so DSM currently pays the higher dividend yield.
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