NBB vs SPY
NBB vs SPY
Nuveen Taxable 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 | NBB | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 2.10% | 0.09% | |
| AUM | - | $789.1B | |
| Dividend Yield | 7.17% | 1.01% | |
| Holdings | 155 | 505 | |
| YTD Return | +1.85% | +13.79% | |
| 1Y Return | +3.82% | +23.66% | |
| 3Y Return (annualized) | +8.65% | +21.40% | |
| 5Y Return (annualized) | -1.20% | +13.37% | |
| Volatility (annualized) | 11.1% | 15.3% | |
| Max Drawdown | -33.5% | -56.5% | |
| Fund Family | Nuveen | State Street Investment Management | |
| Category | Tax Preferred | Equity | |
| Inception | Apr 28, 2010 | Jan 22, 1993 |
NBB vs SPY Performance
Nuveen Taxable Municipal Income Fund (NBB) 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 NBB returned +3.82% while SPY returned +23.66%. Year to date, NBB is up 1.85% versus a gain of 13.79% for SPY.
Over three years, NBB compounded at +8.65% per year against +21.40% for SPY; over five years the annualized figures are -1.20% and +13.37% respectively. Across the full 16-year window we track, SPY has the edge at +8.85% annualized vs +0.77%. 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 11.1% for NBB. 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 -33.5% for NBB 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 0.37. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
NBB charges 2.10% per year while SPY charges 0.09%. On a $10,000 position that is $210 vs $9 annually, a gap of $201 per year that compounds over a long holding period. On income, NBB currently yields 7.17% against 1.01% for SPY.
Holdings Overlap
NBB and SPY share 0 holdings out of 504 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, NBB or SPY?
NBB has an expense ratio of 2.10% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $201 per year of difference.
Which performed better, NBB or SPY?
Over the past year NBB returned +3.82% vs +23.66% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (16 years), NBB annualized +0.77% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, NBB or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 11.1% for NBB. Worst drawdown: NBB -33.5% vs SPY -56.5%.
Should I hold both NBB and SPY?
NBB and SPY have a monthly-return correlation of 0.37, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NBB and SPY?
NBB and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 504 unique securities.
Which pays a higher dividend, NBB or SPY?
NBB yields 7.17% while SPY yields 1.01%, so NBB currently pays the higher dividend yield.
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