LMUB vs SPY
iShares Long-Term National Muni Bond ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
LMUB has a lower expense ratio. SPY delivered stronger 1-year returns. LMUB offers more diversification with 783 holdings.
Side-by-Side Comparison
| Metric | LMUB | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.09% | |
| AUM | $1.6B | $821.1B | |
| Dividend Yield | 3.84% | 1.01% | |
| Holdings | 783 | 505 | |
| YTD Return | +0.23% | +12.22% | |
| 1Y Return | +6.94% | +20.83% | |
| 3Y Return (annualized) | - | +21.70% | |
| 5Y Return (annualized) | - | +12.98% | |
| Volatility (annualized) | 5.5% | 15.3% | |
| Max Drawdown | -5.5% | -56.5% | |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Mar 17, 2025 | Jan 22, 1993 |
LMUB vs SPY Performance
iShares Long-Term National Muni Bond ETF (LMUB) is a ETF from iShares by BlackRock (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year LMUB returned +6.94% while SPY returned +20.83%. Year to date, LMUB is up 0.23% versus a gain of 12.22% for SPY.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 5.5% for LMUB. 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 -5.5% for LMUB 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 0.37. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
LMUB charges 0.09% per year while SPY charges 0.09%. On a $10,000 position that is $9 vs $9 annually, a gap of $0 per year that compounds over a long holding period. On income, LMUB currently yields 3.84% against 1.01% for SPY.
Holdings Overlap
LMUB and SPY share 0 holdings out of 821 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, LMUB or SPY?
LMUB has an expense ratio of 0.09% while SPY charges 0.09%. LMUB is the cheaper option. On a $10,000 investment, that is $0 per year of difference.
Which performed better, LMUB or SPY?
Over the past year LMUB returned +6.94% vs +20.83% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (1 years), LMUB annualized +2.83% vs +8.79% for SPY. Past performance does not guarantee future results.
Which is riskier, LMUB or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 5.5% for LMUB. Worst drawdown: LMUB -5.5% vs SPY -56.5%.
Should I hold both LMUB and SPY?
LMUB and SPY have a monthly-return correlation of 0.37, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between LMUB and SPY?
LMUB and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 821 unique securities.
Which pays a higher dividend, LMUB or SPY?
LMUB yields 3.84% while SPY yields 1.01%, so LMUB currently pays the higher dividend yield.
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