IIM vs SPY
Invesco Value Municipal Income Trust vs State Street SPDR S&P 500 ETF Trust
Which is better, IIM or SPY?
Municipal Bond against Large Cap Blend.
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | IIM | SPY |
|---|---|---|
| Expense Ratio | 1.70% | 0.09%Best |
| AUM | $3,691.17 | $814.4B |
| Dividend Yield | 7.66% | 1.01% |
| Holdings | 499 | 505 |
| YTD Return | +5.35% | +13.34%Best |
| 1Y Return | +13.30% | +19.97%Best |
| 3Y Return (annualized) | +9.85% | +21.20%Best |
| 5Y Return (annualized) | -0.23% | +12.81%Best |
| Volatility (annualized) | 12.1%Best | 15.2% |
| Max Drawdown | -46.5%Best | -56.5% |
| $10,000 over 5 years | $9,886 | $18,270Best |
| Fund Family | Invesco (US) | State Street Investment Management |
| Category | Fixed Income | Equity |
| Style | Municipal Bond | Large Cap Blend |
| Inception | Feb 26, 1993 | Jan 22, 1993 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Jan 2, 1996 to Sep 4, 2026 (30.7 years).
IIM vs SPY growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
IIM vs SPY Performance
Invesco Value Municipal Income Trust (IIM) is an ETF from Invesco (US) and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year IIM returned +13.30% while SPY returned +19.97%. Year to date, IIM is up 5.35% versus a gain of 13.34% for SPY.
Over three years, IIM compounded at +9.85% per year against +21.20% for SPY; over five years the annualized figures are -0.23% and +12.81% respectively. Across the full 31-year window we track, SPY has the edge at +8.82% annualized vs +1.34%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.2% 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 what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.23. They move largely independently of each other.
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
We hold position weights for 245 holdings in IIM and 504 in SPY, totalling 78.2% and 100.0% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
The two holdings books were reported 157 days apart, IIM as of Feb 28, 2026 and SPY as of Aug 4, 2026, so some of the difference between them is the time between the two reports rather than the funds.
0 positions in common, counted across the 245 positions we hold weights for in IIM and 504 in SPY, against full books of 499 and 505.
You are not choosing between two funds in isolation.
Whichever of IIM and SPY you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
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, by $161 a year on a $10,000 investment.
Which performed better, IIM or SPY?
Over the past year IIM returned +13.30% vs +19.97% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (31 years), IIM annualized +1.34% vs +8.82% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IIM or SPY?
SPY has been the more volatile fund at 15.2% 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 their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
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.
Is SPY better than IIM?
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.