MMD vs SPY
NYLI MacKay DefinedTerm Muni Opportunities Fund 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 | MMD | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 2.33% | 0.09% | |
| AUM | $478M | $789.1B | |
| Dividend Yield | 4.59% | 1.01% | |
| Holdings | 90 | 505 | |
| YTD Return | +3.22% | +13.68% | |
| 1Y Return | +6.37% | +21.53% | |
| 3Y Return (annualized) | +1.08% | +21.44% | |
| 5Y Return (annualized) | -3.23% | +13.18% | |
| Volatility (annualized) | 11.2% | 15.3% | |
| Max Drawdown | -30.1% | -56.5% | |
| Fund Family | New York Life Investments | State Street Investment Management | |
| Category | Tax Preferred | Equity | |
| Inception | Jun 27, 2012 | Jan 22, 1993 |
MMD vs SPY Performance
NYLI MacKay DefinedTerm Muni Opportunities Fund (MMD) is a ETF from New York Life Investments and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year MMD returned +6.37% while SPY returned +21.53%. Year to date, MMD is up 3.22% versus a gain of 13.68% for SPY.
Over three years, MMD compounded at +1.08% per year against +21.44% for SPY; over five years the annualized figures are -3.23% and +13.18% respectively. Across the full 14-year window we track, SPY has the edge at +8.85% annualized vs -0.12%. 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 11.2% for MMD. 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 -30.1% for MMD 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 0.43. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MMD charges 2.33% per year while SPY charges 0.09%. On a $10,000 position that is $233 vs $9 annually, a gap of $224 per year that compounds over a long holding period. On income, MMD currently yields 4.59% against 1.01% for SPY.
Holdings Overlap
MMD and SPY share 0 holdings out of 552 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, MMD or SPY?
MMD has an expense ratio of 2.33% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $224 per year of difference.
Which performed better, MMD or SPY?
Over the past year MMD returned +6.37% vs +21.53% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (14 years), MMD annualized -0.12% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, MMD or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 11.2% for MMD. Worst drawdown: MMD -30.1% vs SPY -56.5%.
Should I hold both MMD and SPY?
MMD and SPY have a monthly-return correlation of 0.43, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MMD and SPY?
MMD and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 552 unique securities.
Which pays a higher dividend, MMD or SPY?
MMD yields 4.59% while SPY yields 1.01%, so MMD currently pays the higher dividend yield.
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