FMUN vs SPY
Fidelity Systematic Municipal Bond Index ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
FMUN has a lower expense ratio. SPY delivered stronger 1-year returns. FMUN offers more diversification with 651 holdings.
Side-by-Side Comparison
| Metric | FMUN | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.09% | |
| AUM | $183M | $789.1B | |
| Dividend Yield | 3.58% | 1.01% | |
| Holdings | 651 | 505 | |
| YTD Return | +1.21% | +13.68% | |
| 1Y Return | +5.72% | +21.53% | |
| 3Y Return (annualized) | - | +21.44% | |
| 5Y Return (annualized) | - | +13.18% | |
| Volatility (annualized) | 4.4% | 15.3% | |
| Max Drawdown | -3.2% | -56.5% | |
| Fund Family | Fidelity Investments (US) | State Street Investment Management | |
| Category | Tax Preferred | Equity | |
| Inception | Apr 7, 2025 | Jan 22, 1993 |
FMUN vs SPY Performance
Fidelity Systematic Municipal Bond Index ETF (FMUN) is a ETF from Fidelity Investments (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year FMUN returned +5.72% while SPY returned +21.53%. Year to date, FMUN is up 1.21% versus a gain of 13.68% for SPY.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 4.4% for FMUN. 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 -3.2% for FMUN 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 0.47. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FMUN charges 0.05% per year while SPY charges 0.09%. On a $10,000 position that is $5 vs $9 annually, a gap of $4 per year that compounds over a long holding period. On income, FMUN currently yields 3.58% against 1.01% for SPY.
Frequently Asked Questions
Which is cheaper, FMUN or SPY?
FMUN has an expense ratio of 0.05% while SPY charges 0.09%. FMUN is the cheaper option. On a $10,000 investment, that is $4 per year of difference.
Which performed better, FMUN or SPY?
Over the past year FMUN returned +5.72% vs +21.53% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (1 years), FMUN annualized +4.50% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, FMUN or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 4.4% for FMUN. Worst drawdown: FMUN -3.2% vs SPY -56.5%.
Should I hold both FMUN and SPY?
FMUN and SPY have a monthly-return correlation of 0.47, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, FMUN or SPY?
FMUN yields 3.58% while SPY yields 1.01%, so FMUN currently pays the higher dividend yield.
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