MMKT vs SPY
Texas Capital Government Money Market ETF 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 505 holdings.
Side-by-Side Comparison
| Metric | MMKT | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.20% | 0.09% | |
| AUM | $73M | $821.1B | |
| Dividend Yield | 3.73% | 1.01% | |
| Holdings | 29 | 505 | |
| YTD Return | +2.19% | +12.22% | |
| 1Y Return | +3.70% | +20.83% | |
| 3Y Return (annualized) | - | +21.70% | |
| 5Y Return (annualized) | - | +12.98% | |
| Volatility (annualized) | 0.2% | 15.3% | |
| Max Drawdown | -0.0% | -56.5% | |
| Fund Family | Texas Capital | State Street Investment Management | |
| Category | Money Market | Equity | |
| Inception | Sep 13, 2024 | Jan 22, 1993 |
MMKT vs SPY Performance
Texas Capital Government Money Market ETF (MMKT) is a ETF from Texas Capital and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year MMKT returned +3.70% while SPY returned +20.83%. Year to date, MMKT is up 2.19% versus a gain of 12.22% for SPY.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 0.2% for MMKT. 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 -0.0% for MMKT 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 -0.04. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MMKT charges 0.20% per year while SPY charges 0.09%. On a $10,000 position that is $20 vs $9 annually, a gap of $11 per year that compounds over a long holding period. On income, MMKT currently yields 3.73% against 1.01% for SPY.
Holdings Overlap
MMKT and SPY share 0 holdings out of 508 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, MMKT or SPY?
MMKT has an expense ratio of 0.20% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $11 per year of difference.
Which performed better, MMKT or SPY?
Over the past year MMKT returned +3.70% vs +20.83% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (2 years), MMKT annualized +3.99% vs +8.79% for SPY. Past performance does not guarantee future results.
Which is riskier, MMKT or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 0.2% for MMKT. Worst drawdown: MMKT -0.0% vs SPY -56.5%.
Should I hold both MMKT and SPY?
MMKT and SPY have a monthly-return correlation of -0.04, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MMKT and SPY?
MMKT and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 508 unique securities.
Which pays a higher dividend, MMKT or SPY?
MMKT yields 3.73% while SPY yields 1.01%, so MMKT currently pays the higher dividend yield.
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