GBAB vs SPY
Guggenheim Taxable Municipal Bond & Investment Grade Debt Trust vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. GBAB offers more diversification with 636 holdings.
Side-by-Side Comparison
| Metric | GBAB | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 2.93% | 0.09% | |
| AUM | $394M | $821.1B | |
| Dividend Yield | 10.66% | 1.01% | |
| Holdings | 636 | 505 | |
| YTD Return | -0.55% | +12.68% | |
| 1Y Return | +0.18% | +21.82% | |
| 3Y Return (annualized) | +7.34% | +21.98% | |
| 5Y Return (annualized) | -2.53% | +12.89% | |
| Volatility (annualized) | 11.7% | 15.3% | |
| Max Drawdown | -35.8% | -56.5% | |
| Fund Family | Guggenheim Investments | State Street Investment Management | |
| Category | Tax Preferred | Equity | |
| Inception | Oct 26, 2010 | Jan 22, 1993 |
GBAB vs SPY Performance
Guggenheim Taxable Municipal Bond & Investment Grade Debt Trust (GBAB) is a ETF from Guggenheim Investments and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year GBAB returned +0.18% while SPY returned +21.82%. Year to date, GBAB is down 0.55% versus a gain of 12.68% for SPY.
Over three years, GBAB compounded at +7.34% per year against +21.98% for SPY; over five years the annualized figures are -2.53% and +12.89% respectively. Across the full 16-year window we track, SPY has the edge at +8.81% annualized vs +0.73%. 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 11.7% for GBAB. 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 -35.8% for GBAB 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 0.30. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
GBAB charges 2.93% per year while SPY charges 0.09%. On a $10,000 position that is $293 vs $9 annually, a gap of $284 per year that compounds over a long holding period. On income, GBAB currently yields 10.66% against 1.01% for SPY.
Holdings Overlap
Frequently Asked Questions
Which is cheaper, GBAB or SPY?
GBAB has an expense ratio of 2.93% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $284 per year of difference.
Which performed better, GBAB or SPY?
Over the past year GBAB returned +0.18% vs +21.82% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (16 years), GBAB annualized +0.73% vs +8.81% for SPY. Past performance does not guarantee future results.
Which is riskier, GBAB or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 11.7% for GBAB. Worst drawdown: GBAB -35.8% vs SPY -56.5%.
Should I hold both GBAB and SPY?
GBAB and SPY have a monthly-return correlation of 0.30, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between GBAB and SPY?
GBAB and SPY share 2 common holdings with a 0.5% weight overlap. Combined, they hold 716 unique securities.
Which pays a higher dividend, GBAB or SPY?
GBAB yields 10.66% while SPY yields 1.01%, so GBAB currently pays the higher dividend yield.
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