MFLX vs SPY
First Trust Flexible Municipal High Income 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 | MFLX | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.75% | 0.09% | |
| AUM | $21M | $789.1B | |
| Dividend Yield | 4.09% | 1.01% | |
| Holdings | 80 | 505 | |
| YTD Return | +2.52% | +13.68% | |
| 1Y Return | +7.34% | +21.53% | |
| 3Y Return (annualized) | +5.16% | +21.44% | |
| 5Y Return (annualized) | -0.91% | +13.18% | |
| Volatility (annualized) | 8.6% | 15.3% | |
| Max Drawdown | -26.9% | -56.5% | |
| Fund Family | First Trust Portfolios (US) | State Street Investment Management | |
| Category | Tax Preferred | Equity | |
| Inception | Sep 27, 2016 | Jan 22, 1993 |
MFLX vs SPY Performance
First Trust Flexible Municipal High Income ETF (MFLX) is a ETF from First Trust Portfolios (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year MFLX returned +7.34% while SPY returned +21.53%. Year to date, MFLX is up 2.52% versus a gain of 13.68% for SPY.
Over three years, MFLX compounded at +5.16% per year against +21.44% for SPY; over five years the annualized figures are -0.91% and +13.18% respectively. Across the full 10-year window we track, SPY has the edge at +8.85% annualized vs +0.42%. 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 8.6% for MFLX. 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 -26.9% for MFLX 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 0.55. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MFLX charges 0.75% per year while SPY charges 0.09%. On a $10,000 position that is $75 vs $9 annually, a gap of $66 per year that compounds over a long holding period. On income, MFLX currently yields 4.09% against 1.01% for SPY.
Holdings Overlap
MFLX and SPY share 0 holdings out of 553 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, MFLX or SPY?
MFLX has an expense ratio of 0.75% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $66 per year of difference.
Which performed better, MFLX or SPY?
Over the past year MFLX returned +7.34% vs +21.53% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (10 years), MFLX annualized +0.42% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, MFLX or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 8.6% for MFLX. Worst drawdown: MFLX -26.9% vs SPY -56.5%.
Should I hold both MFLX and SPY?
MFLX and SPY have a monthly-return correlation of 0.55, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MFLX and SPY?
MFLX and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 553 unique securities.
Which pays a higher dividend, MFLX or SPY?
MFLX yields 4.09% while SPY yields 1.01%, so MFLX currently pays the higher dividend yield.
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