MUB vs SPY
iShares National Muni Bond ETF vs State Street SPDR S&P 500 ETF Trust
Which is better, MUB or SPY?
Municipal Bond against Large Cap Blend.
MUB 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 | MUB | SPY |
|---|---|---|
| Expense Ratio | 0.05%Best | 0.09% |
| AUM | $45.0B | $804.7B |
| Dividend Yield | 3.25% | 0.98% |
| Holdings | 6,825 | 505 |
| YTD Return | -2.05% | +10.96%Best |
| 1Y Return | -0.48% | +15.52%Best |
| 3Y Return (annualized) | +2.48% | +20.73%Best |
| 5Y Return (annualized) | +0.18% | +12.53%Best |
| Volatility (annualized) | 5.4%Best | 15.6% |
| Max Drawdown | -14.1%Best | -56.5% |
| $10,000 over 5 years | $10,090 | $18,044Best |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management |
| Category | Tax Preferred | Equity |
| Style | Municipal Bond | Large Cap Blend |
| Inception | Sep 7, 2007 | Jan 22, 1993 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Sep 10, 2007 to Sep 16, 2026 (19 years).
MUB 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.
MUB vs SPY Performance
iShares National Muni Bond ETF (MUB) is an ETF from iShares by BlackRock (US) and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year MUB returned -0.48% while SPY returned +15.52%. Year to date, MUB is down 2.05% versus a gain of 10.96% for SPY.
Over three years, MUB compounded at +2.48% per year against +20.73% for SPY; over five years the annualized figures are +0.18% and +12.53% respectively. Across the full 19-year window we track, SPY has the edge at +9.45% annualized vs +0.85%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.6% compared with 5.4% for MUB. 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 -14.1% for MUB 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 0.28. They move largely independently of each other.
Fees and Cost Over Time
MUB charges 0.05% per year while SPY charges 0.09%. On a $10,000 position that is $5 vs $9 annually, a gap of $4 per year that compounds over a long holding period. On income, MUB currently yields 3.25% against 0.98% for SPY.
Holdings Overlap
We hold position weights for 2,247 holdings in MUB and 504 in SPY, totalling 27.1% and 99.9% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 2,247 positions we hold weights for in MUB and 504 in SPY, against full books of 6,825 and 505.
You are not choosing between two funds in isolation.
Whichever of MUB 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, MUB or SPY?
MUB has an expense ratio of 0.05% while SPY charges 0.09%. MUB is the cheaper option, by $4 a year on a $10,000 investment.
Which performed better, MUB or SPY?
Over the past year MUB returned -0.48% vs +15.52% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (19 years), MUB annualized +0.85% vs +9.45% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, MUB or SPY?
SPY has been the more volatile fund at 15.6% annualized versus 5.4% for MUB. Worst drawdown: MUB -14.1% vs SPY -56.5%.
Should I hold both MUB and SPY?
MUB and SPY have a monthly-return correlation of 0.28, 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, MUB or SPY?
MUB yields 3.25% while SPY yields 0.98%, so MUB currently pays the higher dividend yield.
Is SPY better than MUB?
MUB 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.