NIM vs SPY

NIM vs SPY
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Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. NIM offers more diversification with 537 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: NIM

Side-by-Side Comparison

MetricNIMSPYWinner
Expense Ratio0.56%0.09%
AUM-$821.1B
Dividend Yield3.54%1.01%
Holdings537505
YTD Return+2.48%+13.17%
1Y Return+5.58%+21.53%
3Y Return (annualized)+5.46%+22.06%
5Y Return (annualized)+0.22%+13.35%
Volatility (annualized)8.8%15.3%
Max Drawdown-30.4%-56.5%
Fund FamilyNuveenState Street Investment Management
CategoryTax PreferredEquity
InceptionSep 18, 1992Jan 22, 1993

NIM vs SPY Performance

Nuveen Select Maturities Municipal Fund (NIM) 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 NIM returned +5.58% while SPY returned +21.53%. Year to date, NIM is up 2.48% versus a gain of 13.17% for SPY.

Over three years, NIM compounded at +5.46% per year against +22.06% for SPY; over five years the annualized figures are +0.22% and +13.35% respectively. Across the full 31-year window we track, SPY has the edge at +8.82% annualized vs -0.09%. 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 8.8% for NIM. 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 -30.4% for NIM 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 0.15. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

NIM charges 0.56% per year while SPY charges 0.09%. On a $10,000 position that is $56 vs $9 annually, a gap of $47 per year that compounds over a long holding period. On income, NIM currently yields 3.54% against 1.01% for SPY.

Frequently Asked Questions

Which is cheaper, NIM or SPY?

NIM has an expense ratio of 0.56% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $47 per year of difference.

Which performed better, NIM or SPY?

Over the past year NIM returned +5.58% vs +21.53% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (31 years), NIM annualized -0.09% vs +8.82% for SPY. Past performance does not guarantee future results.

Which is riskier, NIM or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 8.8% for NIM. Worst drawdown: NIM -30.4% vs SPY -56.5%.

Should I hold both NIM and SPY?

NIM and SPY have a monthly-return correlation of 0.15, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, NIM or SPY?

NIM yields 3.54% while SPY yields 1.01%, so NIM currently pays the higher dividend yield.

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