Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. MMIT offers more diversification with 525 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: MMIT

Side-by-Side Comparison

MetricMMITSPYWinner
Expense Ratio0.30%0.09%
AUM$1.5B$789.1B
Dividend Yield3.86%1.01%
Holdings1,608505
YTD Return+0.97%+13.79%
1Y Return+4.59%+23.66%
3Y Return (annualized)+3.58%+21.40%
5Y Return (annualized)+0.91%+13.37%
Volatility (annualized)5.0%15.3%
Max Drawdown-12.3%-56.5%
Fund FamilyINDEXIQ ETF TRUSTState Street Investment Management
CategoryTax PreferredEquity
InceptionOct 18, 2017Jan 22, 1993

MMIT vs SPY Performance

NYLI MacKay Muni Intermediate ETF (MMIT) is a ETF from INDEXIQ ETF TRUST and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year MMIT returned +4.59% while SPY returned +23.66%. Year to date, MMIT is up 0.97% versus a gain of 13.79% for SPY.

Over three years, MMIT compounded at +3.58% per year against +21.40% for SPY; over five years the annualized figures are +0.91% and +13.37% respectively. Across the full 9-year window we track, SPY has the edge at +8.85% annualized vs +1.43%. 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 5.0% for MMIT. 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 -12.3% for MMIT 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 0.48. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

MMIT charges 0.30% per year while SPY charges 0.09%. On a $10,000 position that is $30 vs $9 annually, a gap of $21 per year that compounds over a long holding period. On income, MMIT currently yields 3.86% against 1.01% for SPY.

Holdings Overlap

0.0%overlap

MMIT and SPY share 0 holdings out of 1028 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, MMIT or SPY?

MMIT has an expense ratio of 0.30% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $21 per year of difference.

Which performed better, MMIT or SPY?

Over the past year MMIT returned +4.59% vs +23.66% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (9 years), MMIT annualized +1.43% vs +8.85% for SPY. Past performance does not guarantee future results.

Which is riskier, MMIT or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 5.0% for MMIT. Worst drawdown: MMIT -12.3% vs SPY -56.5%.

Should I hold both MMIT and SPY?

MMIT and SPY have a monthly-return correlation of 0.48, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between MMIT and SPY?

MMIT and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1028 unique securities.

Which pays a higher dividend, MMIT or SPY?

MMIT yields 3.86% while SPY yields 1.01%, so MMIT currently pays the higher dividend yield.

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