MUST vs SPY

MUST vs SPY
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Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. MUST offers more diversification with 645 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: MUST

Side-by-Side Comparison

MetricMUSTSPYWinner
Expense Ratio0.23%0.09%
AUM$599M$821.1B
Dividend Yield3.40%1.01%
Holdings645505
YTD Return+0.11%+12.22%
1Y Return+4.86%+20.83%
3Y Return (annualized)+3.41%+21.70%
5Y Return (annualized)+0.36%+12.98%
Volatility (annualized)6.0%15.3%
Max Drawdown-13.8%-56.5%
Fund FamilyColumbia Threadneedle InvestmentsState Street Investment Management
CategoryTax PreferredEquity
InceptionOct 10, 2018Jan 22, 1993

MUST vs SPY Performance

Columbia Multi-Sector Municipal Income ETF (MUST) is a ETF from Columbia Threadneedle Investments and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year MUST returned +4.86% while SPY returned +20.83%. Year to date, MUST is up 0.11% versus a gain of 12.22% for SPY.

Over three years, MUST compounded at +3.41% per year against +21.70% for SPY; over five years the annualized figures are +0.36% and +12.98% respectively. Across the full 8-year window we track, SPY has the edge at +8.79% annualized vs +1.98%. 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 6.0% for MUST. 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 -13.8% for MUST 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 0.50. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

MUST charges 0.23% per year while SPY charges 0.09%. On a $10,000 position that is $23 vs $9 annually, a gap of $14 per year that compounds over a long holding period. On income, MUST currently yields 3.40% against 1.01% for SPY.

Holdings Overlap

0.0%overlap

MUST and SPY share 0 holdings out of 878 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, MUST or SPY?

MUST has an expense ratio of 0.23% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $14 per year of difference.

Which performed better, MUST or SPY?

Over the past year MUST returned +4.86% vs +20.83% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (8 years), MUST annualized +1.98% vs +8.79% for SPY. Past performance does not guarantee future results.

Which is riskier, MUST or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 6.0% for MUST. Worst drawdown: MUST -13.8% vs SPY -56.5%.

Should I hold both MUST and SPY?

MUST and SPY have a monthly-return correlation of 0.50, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between MUST and SPY?

MUST and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 878 unique securities.

Which pays a higher dividend, MUST or SPY?

MUST yields 3.40% while SPY yields 1.01%, so MUST currently pays the higher dividend yield.

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