Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricMUNBSPYWinner
Expense Ratio0.18%0.09%
AUM$14M$789.1B
Dividend Yield1.79%1.01%
Holdings231505
YTD Return+0.22%+13.79%
1Y Return+2.17%+23.66%
3Y Return (annualized)-+21.40%
5Y Return (annualized)-+13.37%
Volatility (annualized)3.3%15.3%
Max Drawdown-2.5%-56.5%
Fund FamilyNorthern Trust Asset ManagementState Street Investment Management
CategoryFixed IncomeEquity
InceptionMar 1, 2025Jan 22, 1993

MUNB vs SPY Performance

Northern Trust 2035 Tax-Exempt Distributing Ladder ETF (MUNB) is a ETF from Northern Trust Asset Management and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year MUNB returned +2.17% while SPY returned +23.66%. Year to date, MUNB is up 0.22% versus a gain of 13.79% for SPY.

Risk: Volatility and Drawdowns

SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 3.3% for MUNB. 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 -2.5% for MUNB 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 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

MUNB charges 0.18% per year while SPY charges 0.09%. On a $10,000 position that is $18 vs $9 annually, a gap of $9 per year that compounds over a long holding period. On income, MUNB currently yields 1.79% against 1.01% for SPY.

Holdings Overlap

0.0%overlap

MUNB and SPY share 0 holdings out of 522 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, MUNB or SPY?

MUNB has an expense ratio of 0.18% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $9 per year of difference.

Which performed better, MUNB or SPY?

Over the past year MUNB returned +2.17% vs +23.66% for SPY, so SPY leads on 1-year performance. Past performance does not guarantee future results.

Which is riskier, MUNB or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 3.3% for MUNB. Worst drawdown: MUNB -2.5% vs SPY -56.5%.

Should I hold both MUNB and SPY?

MUNB and SPY have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between MUNB and SPY?

MUNB and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 522 unique securities.

Which pays a higher dividend, MUNB or SPY?

MUNB yields 1.79% while SPY yields 1.01%, so MUNB currently pays the higher dividend yield.

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