IIM vs SPY
Invesco Value Municipal Income Trust 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 505 holdings.
Side-by-Side Comparison
| Metric | IIM | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 1.70% | 0.09% | |
| AUM | $3,691.17 | $821.1B | |
| Dividend Yield | 7.66% | 1.01% | |
| Holdings | 499 | 505 | |
| YTD Return | +8.09% | +14.24% | |
| 1Y Return | +18.13% | +21.71% | |
| 3Y Return (annualized) | +10.61% | +22.10% | |
| 5Y Return (annualized) | +0.40% | +13.21% | |
| Volatility (annualized) | 12.1% | 15.3% | |
| Max Drawdown | -46.5% | -56.5% | |
| Fund Family | Invesco (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Feb 26, 1993 | Jan 22, 1993 |
IIM vs SPY Performance
Invesco Value Municipal Income Trust (IIM) is a ETF from Invesco (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year IIM returned +18.13% while SPY returned +21.71%. Year to date, IIM is up 8.09% versus a gain of 14.24% for SPY.
Over three years, IIM compounded at +10.61% per year against +22.10% for SPY; over five years the annualized figures are +0.40% and +13.21% respectively. Across the full 31-year window we track, SPY has the edge at +8.86% annualized vs +1.43%. 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 12.1% for IIM. 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 -46.5% for IIM 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 0.23. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IIM charges 1.70% per year while SPY charges 0.09%. On a $10,000 position that is $170 vs $9 annually, a gap of $161 per year that compounds over a long holding period. On income, IIM currently yields 7.66% against 1.01% for SPY.
Holdings Overlap
IIM and SPY share 0 holdings out of 749 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, IIM or SPY?
IIM has an expense ratio of 1.70% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $161 per year of difference.
Which performed better, IIM or SPY?
Over the past year IIM returned +18.13% vs +21.71% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (31 years), IIM annualized +1.43% vs +8.86% for SPY. Past performance does not guarantee future results.
Which is riskier, IIM or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 12.1% for IIM. Worst drawdown: IIM -46.5% vs SPY -56.5%.
Should I hold both IIM and SPY?
IIM and SPY have a monthly-return correlation of 0.23, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IIM and SPY?
IIM and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 749 unique securities.
Which pays a higher dividend, IIM or SPY?
IIM yields 7.66% while SPY yields 1.01%, so IIM currently pays the higher dividend yield.
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