MFM vs SPY
MFS Municipal Income Trust vs State Street SPDR S&P 500 ETF Trust
Which is better, MFM or SPY?
Municipal Bond against Large Cap Blend.
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | MFM | SPY |
|---|---|---|
| Expense Ratio | 1.45% | 0.09%Best |
| AUM | $250M | $804.7B |
| Dividend Yield | 5.66% | 0.98% |
| Holdings | 840 | 505 |
| YTD Return | +0.26% | +12.47%Best |
| 1Y Return | +2.06% | +17.51%Best |
| 3Y Return (annualized) | +7.44% | +21.18%Best |
| 5Y Return (annualized) | -1.58% | +12.88%Best |
| Volatility (annualized) | 14.1%Best | 15.3% |
| Max Drawdown | -64.8% | -56.5%Best |
| $10,000 over 5 years | $9,235 | $18,327Best |
| Fund Family | MFS Investment Management | State Street Investment Management |
| Category | Tax Preferred | Equity |
| Style | Municipal Bond | Large Cap Blend |
| Inception | Nov 25, 1986 | Jan 22, 1993 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Jan 2, 1996 to Sep 11, 2026 (30.7 years).
MFM vs SPY growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
MFM vs SPY Performance
MFS Municipal Income Trust (MFM) is an ETF from MFS Investment Management and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year MFM returned +2.06% while SPY returned +17.51%. Year to date, MFM is up 0.26% versus a gain of 12.47% for SPY.
Over three years, MFM compounded at +7.44% per year against +21.18% for SPY; over five years the annualized figures are -1.58% and +12.88% respectively. Across the full 31-year window we track, SPY has the edge at +8.78% annualized vs -1.17%.
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 14.1% for MFM. 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 -64.8% for MFM and -56.5% for SPY. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.26. They move largely independently of each other.
Fees and Cost Over Time
MFM charges 1.45% per year while SPY charges 0.09%. On a $10,000 position that is $145 vs $9 annually, a gap of $136 per year that compounds over a long holding period. On income, MFM currently yields 5.66% against 0.98% for SPY.
Holdings Overlap
We hold position weights for 263 holdings in MFM and 504 in SPY, totalling 55.1% and 100.0% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
The two holdings books were reported 185 days apart, MFM as of Jan 31, 2026 and SPY as of Aug 4, 2026, so some of the difference between them is the time between the two reports rather than the funds.
0 positions in common, counted across the 263 positions we hold weights for in MFM and 504 in SPY, against full books of 840 and 505.
You are not choosing between two funds in isolation.
Whichever of MFM and SPY you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, MFM or SPY?
MFM has an expense ratio of 1.45% while SPY charges 0.09%. SPY is the cheaper option, by $136 a year on a $10,000 investment.
Which performed better, MFM or SPY?
Over the past year MFM returned +2.06% vs +17.51% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (31 years), MFM annualized -1.17% vs +8.78% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, MFM or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 14.1% for MFM. Worst drawdown: MFM -64.8% vs SPY -56.5%.
Should I hold both MFM and SPY?
MFM and SPY have a monthly-return correlation of 0.26, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, MFM or SPY?
MFM yields 5.66% while SPY yields 0.98%, so MFM currently pays the higher dividend yield.
Is SPY better than MFM?
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.