MHF vs SPY
Western Asset Municipal High Income Fund Inc. vs State Street SPDR S&P 500 ETF Trust
Which is better, MHF 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 | MHF | SPY |
|---|---|---|
| Expense Ratio | 0.71% | 0.09%Best |
| AUM | $152M | $804.7B |
| Dividend Yield | 6.06% | 0.98% |
| Holdings | 248 | 505 |
| YTD Return | -2.78% | +11.45%Best |
| 1Y Return | -8.50% | +15.87%Best |
| 3Y Return (annualized) | +6.79% | +20.93%Best |
| 5Y Return (annualized) | -0.45% | +12.59%Best |
| Volatility (annualized) | 10.3%Best | 15.3% |
| Max Drawdown | -44.6%Best | -56.5% |
| $10,000 over 5 years | $9,777 | $18,093Best |
| Fund Family | Franklin Templeton Investments (US) | State Street Investment Management |
| Category | Tax Preferred | Equity |
| Style | Municipal Bond | Large Cap Blend |
| Inception | Nov 28, 1988 | 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 15, 2026 (30.7 years).
MHF 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.
MHF vs SPY Performance
Western Asset Municipal High Income Fund Inc. (MHF) is an ETF from Franklin Templeton Investments (US) and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year MHF returned -8.50% while SPY returned +15.87%. Year to date, MHF is down 2.78% versus a gain of 11.45% for SPY.
Over three years, MHF compounded at +6.79% per year against +20.93% for SPY; over five years the annualized figures are -0.45% and +12.59% respectively. Across the full 31-year window we track, SPY has the edge at +8.75% annualized vs -0.09%.
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 10.3% for MHF. 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 -44.6% for MHF 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 0.22. They move largely independently of each other.
Fees and Cost Over Time
MHF charges 0.71% per year while SPY charges 0.09%. On a $10,000 position that is $71 vs $9 annually, a gap of $62 per year that compounds over a long holding period. On income, MHF currently yields 6.06% against 0.98% for SPY.
Holdings Overlap
We hold position weights for 126 holdings in MHF and 504 in SPY, totalling 48.6% and 99.9% 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 214 days apart, MHF as of Jan 30, 2026 and SPY as of Sep 1, 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 126 positions we hold weights for in MHF and 504 in SPY, against full books of 248 and 505.
You are not choosing between two funds in isolation.
Whichever of MHF 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, MHF or SPY?
MHF has an expense ratio of 0.71% while SPY charges 0.09%. SPY is the cheaper option, by $62 a year on a $10,000 investment.
Which performed better, MHF or SPY?
Over the past year MHF returned -8.50% vs +15.87% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (31 years), MHF annualized -0.09% vs +8.75% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, MHF or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 10.3% for MHF. Worst drawdown: MHF -44.6% vs SPY -56.5%.
Should I hold both MHF and SPY?
MHF and SPY have a monthly-return correlation of 0.22, 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, MHF or SPY?
MHF yields 6.06% while SPY yields 0.98%, so MHF currently pays the higher dividend yield.
Is SPY better than MHF?
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.