IQI vs SPY
Invesco Quality 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 | IQI | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 1.71% | 0.09% | |
| AUM | $3,048.42 | $821.1B | |
| Dividend Yield | 7.66% | 1.01% | |
| Holdings | 485 | 505 | |
| YTD Return | +5.33% | +12.68% | |
| 1Y Return | +15.70% | +21.82% | |
| 3Y Return (annualized) | +10.51% | +21.98% | |
| 5Y Return (annualized) | -0.20% | +12.89% | |
| Volatility (annualized) | 11.6% | 15.3% | |
| Max Drawdown | -57.6% | -56.5% | |
| Fund Family | Invesco (US) | State Street Investment Management | |
| Category | Tax Preferred | Equity | |
| Inception | Sep 29, 1992 | Jan 22, 1993 |
IQI vs SPY Performance
Invesco Quality Municipal Income Trust (IQI) 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 IQI returned +15.70% while SPY returned +21.82%. Year to date, IQI is up 5.33% versus a gain of 12.68% for SPY.
Over three years, IQI compounded at +10.51% per year against +21.98% for SPY; over five years the annualized figures are -0.20% and +12.89% respectively. Across the full 31-year window we track, SPY has the edge at +8.81% annualized vs -0.02%. 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 11.6% for IQI. 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 -57.6% for IQI 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 0.27. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IQI charges 1.71% per year while SPY charges 0.09%. On a $10,000 position that is $171 vs $9 annually, a gap of $162 per year that compounds over a long holding period. On income, IQI currently yields 7.66% against 1.01% for SPY.
Holdings Overlap
IQI 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, IQI or SPY?
IQI has an expense ratio of 1.71% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $162 per year of difference.
Which performed better, IQI or SPY?
Over the past year IQI returned +15.70% vs +21.82% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (31 years), IQI annualized -0.02% vs +8.81% for SPY. Past performance does not guarantee future results.
Which is riskier, IQI or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 11.6% for IQI. Worst drawdown: IQI -57.6% vs SPY -56.5%.
Should I hold both IQI and SPY?
IQI and SPY have a monthly-return correlation of 0.27, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IQI and SPY?
IQI and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 749 unique securities.
Which pays a higher dividend, IQI or SPY?
IQI yields 7.66% while SPY yields 1.01%, so IQI currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.