MBND vs SPY
State Street Nuveen Municipal Bond ETF 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 503 holdings.
Side-by-Side Comparison
| Metric | MBND | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.40% | 0.09% | |
| AUM | $27M | $789.1B | |
| Dividend Yield | 3.46% | 1.01% | |
| Holdings | 74 | 505 | |
| YTD Return | -1.55% | +13.39% | |
| 1Y Return | +1.81% | +22.52% | |
| 3Y Return (annualized) | +2.69% | +21.36% | |
| 5Y Return (annualized) | -0.03% | +13.19% | |
| Volatility (annualized) | 5.4% | 15.3% | |
| Max Drawdown | -13.2% | -56.5% | |
| Fund Family | State Street Investment Management | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Feb 4, 2021 | Jan 22, 1993 |
MBND vs SPY Performance
State Street Nuveen Municipal Bond ETF (MBND) is a ETF from State Street Investment Management and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year MBND returned +1.81% while SPY returned +22.52%. Year to date, MBND is down 1.55% versus a gain of 13.39% for SPY.
Over three years, MBND compounded at +2.69% per year against +21.36% for SPY; over five years the annualized figures are -0.03% and +13.19% respectively. Across the full 6-year window we track, SPY has the edge at +8.84% annualized vs +0.20%. 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 5.4% for MBND. 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 -13.2% for MBND 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 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MBND charges 0.40% per year while SPY charges 0.09%. On a $10,000 position that is $40 vs $9 annually, a gap of $31 per year that compounds over a long holding period. On income, MBND currently yields 3.46% against 1.01% for SPY.
Holdings Overlap
MBND and SPY share 0 holdings out of 543 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, MBND or SPY?
MBND has an expense ratio of 0.40% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $31 per year of difference.
Which performed better, MBND or SPY?
Over the past year MBND returned +1.81% vs +22.52% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (6 years), MBND annualized +0.20% vs +8.84% for SPY. Past performance does not guarantee future results.
Which is riskier, MBND or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 5.4% for MBND. Worst drawdown: MBND -13.2% vs SPY -56.5%.
Should I hold both MBND and SPY?
MBND and SPY have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MBND and SPY?
MBND and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 543 unique securities.
Which pays a higher dividend, MBND or SPY?
MBND yields 3.46% while SPY yields 1.01%, so MBND 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.