NAC vs SPY
Nuveen California Quality Municipal Income 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 | NAC | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 3.79% | 0.09% | |
| AUM | - | $789.1B | |
| Dividend Yield | 7.49% | 1.01% | |
| Holdings | 346 | 505 | |
| YTD Return | +4.43% | +13.39% | |
| 1Y Return | +13.12% | +22.52% | |
| 3Y Return (annualized) | +11.20% | +21.36% | |
| 5Y Return (annualized) | -0.28% | +13.19% | |
| Volatility (annualized) | 13.0% | 15.3% | |
| Max Drawdown | -53.7% | -56.5% | |
| Fund Family | Nuveen | State Street Investment Management | |
| Category | Tax Preferred | Equity | |
| Inception | May 26, 1999 | Jan 22, 1993 |
NAC vs SPY Performance
Nuveen California Quality Municipal Income Fund (NAC) is a ETF from Nuveen and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year NAC returned +13.12% while SPY returned +22.52%. Year to date, NAC is up 4.43% versus a gain of 13.39% for SPY.
Over three years, NAC compounded at +11.20% per year against +21.36% for SPY; over five years the annualized figures are -0.28% and +13.19% respectively. Across the full 27-year window we track, SPY has the edge at +8.84% annualized vs +0.26%. 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 13.0% for NAC. 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 -53.7% for NAC 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
NAC charges 3.79% per year while SPY charges 0.09%. On a $10,000 position that is $379 vs $9 annually, a gap of $370 per year that compounds over a long holding period. On income, NAC currently yields 7.49% against 1.01% for SPY.
Holdings Overlap
NAC and SPY share 0 holdings out of 643 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, NAC or SPY?
NAC has an expense ratio of 3.79% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $370 per year of difference.
Which performed better, NAC or SPY?
Over the past year NAC returned +13.12% vs +22.52% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (27 years), NAC annualized +0.26% vs +8.84% for SPY. Past performance does not guarantee future results.
Which is riskier, NAC or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 13.0% for NAC. Worst drawdown: NAC -53.7% vs SPY -56.5%.
Should I hold both NAC and SPY?
NAC 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 NAC and SPY?
NAC and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 643 unique securities.
Which pays a higher dividend, NAC or SPY?
NAC yields 7.49% while SPY yields 1.01%, so NAC currently pays the higher dividend yield.
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