NAZ vs SPY
Nuveen Arizona 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 505 holdings.
Side-by-Side Comparison
| Metric | NAZ | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 3.72% | 0.09% | |
| AUM | - | $821.1B | |
| Dividend Yield | 6.94% | 1.01% | |
| Holdings | 219 | 505 | |
| YTD Return | +8.05% | +12.22% | |
| 1Y Return | +11.87% | +20.83% | |
| 3Y Return (annualized) | +13.02% | +21.70% | |
| 5Y Return (annualized) | -0.01% | +12.98% | |
| Volatility (annualized) | 12.3% | 15.3% | |
| Max Drawdown | -49.5% | -56.5% | |
| Fund Family | Nuveen | State Street Investment Management | |
| Category | Tax Preferred | Equity | |
| Inception | Nov 19, 1992 | Jan 22, 1993 |
NAZ vs SPY Performance
Nuveen Arizona Quality Municipal Income Fund (NAZ) 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 NAZ returned +11.87% while SPY returned +20.83%. Year to date, NAZ is up 8.05% versus a gain of 12.22% for SPY.
Over three years, NAZ compounded at +13.02% per year against +21.70% for SPY; over five years the annualized figures are -0.01% and +12.98% respectively. Across the full 31-year window we track, SPY has the edge at +8.79% annualized vs +0.64%. 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 12.3% for NAZ. 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 -49.5% for NAZ 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 0.20. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
NAZ charges 3.72% per year while SPY charges 0.09%. On a $10,000 position that is $372 vs $9 annually, a gap of $363 per year that compounds over a long holding period. On income, NAZ currently yields 6.94% against 1.01% for SPY.
Holdings Overlap
NAZ and SPY share 0 holdings out of 543 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, NAZ or SPY?
NAZ has an expense ratio of 3.72% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $363 per year of difference.
Which performed better, NAZ or SPY?
Over the past year NAZ returned +11.87% vs +20.83% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (31 years), NAZ annualized +0.64% vs +8.79% for SPY. Past performance does not guarantee future results.
Which is riskier, NAZ or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 12.3% for NAZ. Worst drawdown: NAZ -49.5% vs SPY -56.5%.
Should I hold both NAZ and SPY?
NAZ and SPY have a monthly-return correlation of 0.20, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NAZ and SPY?
NAZ and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 543 unique securities.
Which pays a higher dividend, NAZ or SPY?
NAZ yields 6.94% while SPY yields 1.01%, so NAZ currently pays the higher dividend yield.
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