MEAR vs SPY
iShares Short Maturity Municipal Bond Active 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 | MEAR | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.26% | 0.09% | |
| AUM | $1.4B | $789.1B | |
| Dividend Yield | 2.84% | 1.01% | |
| Holdings | 346 | 505 | |
| YTD Return | -0.20% | +13.39% | |
| 1Y Return | +0.69% | +22.52% | |
| 3Y Return (annualized) | +2.85% | +21.36% | |
| 5Y Return (annualized) | +2.11% | +13.19% | |
| Volatility (annualized) | 6.5% | 15.3% | |
| Max Drawdown | -14.4% | -56.5% | |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management | |
| Category | Tax Preferred | Equity | |
| Inception | Mar 3, 2015 | Jan 22, 1993 |
MEAR vs SPY Performance
iShares Short Maturity Municipal Bond Active ETF (MEAR) 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 MEAR returned +0.69% while SPY returned +22.52%. Year to date, MEAR is down 0.20% versus a gain of 13.39% for SPY.
Over three years, MEAR compounded at +2.85% per year against +21.36% for SPY; over five years the annualized figures are +2.11% and +13.19% respectively. Across the full 11-year window we track, SPY has the edge at +8.84% annualized vs +1.52%. 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 6.5% for MEAR. 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 -14.4% for MEAR 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 0.02. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MEAR charges 0.26% per year while SPY charges 0.09%. On a $10,000 position that is $26 vs $9 annually, a gap of $17 per year that compounds over a long holding period. On income, MEAR currently yields 2.84% against 1.01% for SPY.
Holdings Overlap
MEAR and SPY share 0 holdings out of 578 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, MEAR or SPY?
MEAR has an expense ratio of 0.26% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $17 per year of difference.
Which performed better, MEAR or SPY?
Over the past year MEAR returned +0.69% vs +22.52% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (11 years), MEAR annualized +1.52% vs +8.84% for SPY. Past performance does not guarantee future results.
Which is riskier, MEAR or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 6.5% for MEAR. Worst drawdown: MEAR -14.4% vs SPY -56.5%.
Should I hold both MEAR and SPY?
MEAR and SPY have a monthly-return correlation of 0.02, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MEAR and SPY?
MEAR and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 578 unique securities.
Which pays a higher dividend, MEAR or SPY?
MEAR yields 2.84% while SPY yields 1.01%, so MEAR currently pays the higher dividend yield.
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