MUNI vs SPY
PIMCO Intermediate Municipal Bond Active Exchange-Traded Fund 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 | MUNI | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.09% | |
| AUM | $3.1B | $789.1B | |
| Dividend Yield | 3.28% | 1.01% | |
| Holdings | 580 | 505 | |
| YTD Return | +0.51% | +13.75% | |
| 1Y Return | +4.20% | +22.91% | |
| 3Y Return (annualized) | +3.65% | +21.67% | |
| 5Y Return (annualized) | +1.03% | +13.32% | |
| Volatility (annualized) | 3.9% | 15.3% | |
| Max Drawdown | -11.2% | -56.5% | |
| Fund Family | PIMCO (US) | State Street Investment Management | |
| Category | Tax Preferred | Equity | |
| Inception | Nov 30, 2009 | Jan 22, 1993 |
MUNI vs SPY Performance
PIMCO Intermediate Municipal Bond Active Exchange-Traded Fund (MUNI) is a ETF from PIMCO (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year MUNI returned +4.20% while SPY returned +22.91%. Year to date, MUNI is up 0.51% versus a gain of 13.75% for SPY.
Over three years, MUNI compounded at +3.65% per year against +21.67% for SPY; over five years the annualized figures are +1.03% and +13.32% respectively. Across the full 17-year window we track, SPY has the edge at +8.85% annualized vs +1.12%. 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 3.9% for MUNI. 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 -11.2% for MUNI 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 0.27. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MUNI charges 0.35% per year while SPY charges 0.09%. On a $10,000 position that is $35 vs $9 annually, a gap of $26 per year that compounds over a long holding period. On income, MUNI currently yields 3.28% against 1.01% for SPY.
Holdings Overlap
MUNI and SPY share 0 holdings out of 882 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, MUNI or SPY?
MUNI has an expense ratio of 0.35% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $26 per year of difference.
Which performed better, MUNI or SPY?
Over the past year MUNI returned +4.20% vs +22.91% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (17 years), MUNI annualized +1.12% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, MUNI or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 3.9% for MUNI. Worst drawdown: MUNI -11.2% vs SPY -56.5%.
Should I hold both MUNI and SPY?
MUNI and SPY have a monthly-return correlation of 0.27, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MUNI and SPY?
MUNI and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 882 unique securities.
Which pays a higher dividend, MUNI or SPY?
MUNI yields 3.28% while SPY yields 1.01%, so MUNI currently pays the higher dividend yield.
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