Quick Verdict

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

Lower Fees: SPYHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricNDMOSPYWinner
Expense Ratio2.92%0.09%
AUM-$789.1B
Dividend Yield7.09%1.01%
Holdings543505
YTD Return+3.39%+13.79%
1Y Return+9.81%+23.66%
3Y Return (annualized)+5.06%+21.40%
5Y Return (annualized)-3.82%+13.37%
Volatility (annualized)18.2%15.3%
Max Drawdown-42.5%-56.5%
Fund FamilyNuveenState Street Investment Management
CategoryTax PreferredEquity
InceptionAug 26, 2020Jan 22, 1993

NDMO vs SPY Performance

Nuveen Dynamic Municipal Opportunities Fund (NDMO) 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 NDMO returned +9.81% while SPY returned +23.66%. Year to date, NDMO is up 3.39% versus a gain of 13.79% for SPY.

Over three years, NDMO compounded at +5.06% per year against +21.40% for SPY; over five years the annualized figures are -3.82% and +13.37% respectively. Across the full 6-year window we track, SPY has the edge at +8.85% annualized vs -0.47%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

NDMO has been the more volatile fund, with annualized monthly volatility of 18.2% compared with 15.3% for SPY. 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 -42.5% for NDMO 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 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

NDMO charges 2.92% per year while SPY charges 0.09%. On a $10,000 position that is $292 vs $9 annually, a gap of $283 per year that compounds over a long holding period. On income, NDMO currently yields 7.09% against 1.01% for SPY.

Holdings Overlap

0.0%overlap

NDMO and SPY share 0 holdings out of 701 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, NDMO or SPY?

NDMO has an expense ratio of 2.92% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $283 per year of difference.

Which performed better, NDMO or SPY?

Over the past year NDMO returned +9.81% vs +23.66% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (6 years), NDMO annualized -0.47% vs +8.85% for SPY. Past performance does not guarantee future results.

Which is riskier, NDMO or SPY?

NDMO has been the more volatile fund at 18.2% annualized versus 15.3% for SPY. Worst drawdown: NDMO -42.5% vs SPY -56.5%.

Should I hold both NDMO and SPY?

NDMO and SPY have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between NDMO and SPY?

NDMO and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 701 unique securities.

Which pays a higher dividend, NDMO or SPY?

NDMO yields 7.09% while SPY yields 1.01%, so NDMO currently pays the higher dividend yield.

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