MHD vs SPY
BlackRock MuniHoldings Fund, Inc 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 | MHD | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 2.31% | 0.09% | |
| AUM | $2.2B | $789.1B | |
| Dividend Yield | 5.52% | 1.01% | |
| Holdings | 422 | 505 | |
| YTD Return | +2.79% | +13.39% | |
| 1Y Return | +9.77% | +22.52% | |
| 3Y Return (annualized) | +6.39% | +21.36% | |
| 5Y Return (annualized) | -2.62% | +13.19% | |
| Volatility (annualized) | 13.4% | 15.3% | |
| Max Drawdown | -52.7% | -56.5% | |
| Fund Family | BlackRock, Inc. (US) | State Street Investment Management | |
| Category | Tax Preferred | Equity | |
| Inception | May 2, 1997 | Jan 22, 1993 |
MHD vs SPY Performance
BlackRock MuniHoldings Fund, Inc (MHD) is a ETF from BlackRock, Inc. (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year MHD returned +9.77% while SPY returned +22.52%. Year to date, MHD is up 2.79% versus a gain of 13.39% for SPY.
Over three years, MHD compounded at +6.39% per year against +21.36% for SPY; over five years the annualized figures are -2.62% and +13.19% respectively. Across the full 29-year window we track, SPY has the edge at +8.84% annualized vs +0.00%. 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 13.4% for MHD. 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 -52.7% for MHD 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 0.22. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MHD charges 2.31% per year while SPY charges 0.09%. On a $10,000 position that is $231 vs $9 annually, a gap of $222 per year that compounds over a long holding period. On income, MHD currently yields 5.52% against 1.01% for SPY.
Holdings Overlap
MHD and SPY share 0 holdings out of 695 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, MHD or SPY?
MHD has an expense ratio of 2.31% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $222 per year of difference.
Which performed better, MHD or SPY?
Over the past year MHD returned +9.77% vs +22.52% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (29 years), MHD annualized +0.00% vs +8.84% for SPY. Past performance does not guarantee future results.
Which is riskier, MHD or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 13.4% for MHD. Worst drawdown: MHD -52.7% vs SPY -56.5%.
Should I hold both MHD and SPY?
MHD and SPY have a monthly-return correlation of 0.22, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MHD and SPY?
MHD and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 695 unique securities.
Which pays a higher dividend, MHD or SPY?
MHD yields 5.52% while SPY yields 1.01%, so MHD currently pays the higher dividend yield.
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