HMOP vs SPY

Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricHMOPSPYWinner
Expense Ratio0.29%0.09%
AUM$786M$789.1B
Dividend Yield3.78%1.01%
Holdings587505
YTD Return+1.17%+13.39%
1Y Return+5.13%+22.52%
3Y Return (annualized)+4.26%+21.36%
5Y Return (annualized)+1.19%+13.19%
Volatility (annualized)5.1%15.3%
Max Drawdown-13.6%-56.5%
Fund FamilyHartford FundsState Street Investment Management
CategoryTax PreferredEquity
InceptionDec 13, 2017Jan 22, 1993

HMOP vs SPY Performance

Hartford Municipal Opportunities ETF (HMOP) is a ETF from Hartford Funds and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year HMOP returned +5.13% while SPY returned +22.52%. Year to date, HMOP is up 1.17% versus a gain of 13.39% for SPY.

Over three years, HMOP compounded at +4.26% per year against +21.36% for SPY; over five years the annualized figures are +1.19% and +13.19% respectively. Across the full 9-year window we track, SPY has the edge at +8.84% annualized vs +1.38%. 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 5.1% for HMOP. 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 -13.6% for HMOP 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 0.49. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

HMOP charges 0.29% per year while SPY charges 0.09%. On a $10,000 position that is $29 vs $9 annually, a gap of $20 per year that compounds over a long holding period. On income, HMOP currently yields 3.78% against 1.01% for SPY.

Holdings Overlap

0.0%overlap

HMOP and SPY share 0 holdings out of 840 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, HMOP or SPY?

HMOP has an expense ratio of 0.29% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $20 per year of difference.

Which performed better, HMOP or SPY?

Over the past year HMOP returned +5.13% vs +22.52% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (9 years), HMOP annualized +1.38% vs +8.84% for SPY. Past performance does not guarantee future results.

Which is riskier, HMOP or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 5.1% for HMOP. Worst drawdown: HMOP -13.6% vs SPY -56.5%.

Should I hold both HMOP and SPY?

HMOP and SPY have a monthly-return correlation of 0.49, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between HMOP and SPY?

HMOP and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 840 unique securities.

Which pays a higher dividend, HMOP or SPY?

HMOP yields 3.78% while SPY yields 1.01%, so HMOP currently pays the higher dividend yield.

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