MUNY vs SPY

Quick Verdict

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

Lower Fees: MUNYHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricMUNYSPYWinner
Expense Ratio0.09%0.09%
AUM$447M$789.1B
Dividend Yield3.11%1.01%
Holdings3,016505
YTD Return-1.04%+13.39%
1Y Return+3.02%+22.52%
3Y Return (annualized)-+21.36%
5Y Return (annualized)-+13.19%
Volatility (annualized)4.3%15.3%
Max Drawdown-3.2%-56.5%
Fund FamilyVanguard (US)State Street Investment Management
CategoryTax PreferredEquity
InceptionMay 20, 2025Jan 22, 1993

MUNY vs SPY Performance

Vanguard New York Tax-Exempt Bond ETF (MUNY) is a ETF from Vanguard (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year MUNY returned +3.02% while SPY returned +22.52%. Year to date, MUNY is down 1.04% versus a gain of 13.39% for SPY.

Risk: Volatility and Drawdowns

SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 4.3% for MUNY. 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 -3.2% for MUNY 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 0.52. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

MUNY charges 0.09% per year while SPY charges 0.09%. On a $10,000 position that is $9 vs $9 annually, a gap of $0 per year that compounds over a long holding period. On income, MUNY currently yields 3.11% against 1.01% for SPY.

Holdings Overlap

0.0%overlap

MUNY and SPY share 0 holdings out of 853 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, MUNY or SPY?

MUNY has an expense ratio of 0.09% while SPY charges 0.09%. MUNY is the cheaper option. On a $10,000 investment, that is $0 per year of difference.

Which performed better, MUNY or SPY?

Over the past year MUNY returned +3.02% vs +22.52% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (1 years), MUNY annualized +3.53% vs +8.84% for SPY. Past performance does not guarantee future results.

Which is riskier, MUNY or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 4.3% for MUNY. Worst drawdown: MUNY -3.2% vs SPY -56.5%.

Should I hold both MUNY and SPY?

MUNY and SPY have a monthly-return correlation of 0.52, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between MUNY and SPY?

MUNY and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 853 unique securities.

Which pays a higher dividend, MUNY or SPY?

MUNY yields 3.11% while SPY yields 1.01%, so MUNY currently pays the higher dividend yield.

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