MUC vs SPY
BlackRock MuniHoldings California Quality Fund, Inc 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 | MUC | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 2.82% | 0.09% | |
| AUM | $1.4B | $789.1B | |
| Dividend Yield | 5.40% | 1.01% | |
| Holdings | 213 | 505 | |
| YTD Return | +4.40% | +13.39% | |
| 1Y Return | +11.21% | +22.52% | |
| 3Y Return (annualized) | +6.38% | +21.36% | |
| 5Y Return (annualized) | -3.10% | +13.19% | |
| Volatility (annualized) | 12.8% | 15.3% | |
| Max Drawdown | -56.6% | -56.5% | |
| Fund Family | BlackRock, Inc. (US) | State Street Investment Management | |
| Category | Tax Preferred | Equity | |
| Inception | Feb 27, 1998 | Jan 22, 1993 |
MUC vs SPY Performance
BlackRock MuniHoldings California Quality Fund, Inc (MUC) is a ETF from BlackRock, Inc. (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year MUC returned +11.21% while SPY returned +22.52%. Year to date, MUC is up 4.40% versus a gain of 13.39% for SPY.
Over three years, MUC compounded at +6.38% per year against +21.36% for SPY; over five years the annualized figures are -3.10% and +13.19% respectively. Across the full 28-year window we track, SPY has the edge at +8.84% annualized vs -0.18%. 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 12.8% for MUC. 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 -56.6% for MUC 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 0.23. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MUC charges 2.82% per year while SPY charges 0.09%. On a $10,000 position that is $282 vs $9 annually, a gap of $273 per year that compounds over a long holding period. On income, MUC currently yields 5.40% against 1.01% for SPY.
Holdings Overlap
MUC and SPY share 0 holdings out of 587 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, MUC or SPY?
MUC has an expense ratio of 2.82% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $273 per year of difference.
Which performed better, MUC or SPY?
Over the past year MUC returned +11.21% vs +22.52% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (28 years), MUC annualized -0.18% vs +8.84% for SPY. Past performance does not guarantee future results.
Which is riskier, MUC or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 12.8% for MUC. Worst drawdown: MUC -56.6% vs SPY -56.5%.
Should I hold both MUC and SPY?
MUC and SPY have a monthly-return correlation of 0.23, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MUC and SPY?
MUC and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 587 unique securities.
Which pays a higher dividend, MUC or SPY?
MUC yields 5.40% while SPY yields 1.01%, so MUC currently pays the higher dividend yield.
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