NKX vs SPY
Nuveen California AMT-Free 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 | NKX | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 4.02% | 0.09% | |
| AUM | - | $821.1B | |
| Dividend Yield | 7.71% | 1.01% | |
| Holdings | 214 | 505 | |
| YTD Return | +1.05% | +12.22% | |
| 1Y Return | +10.04% | +20.83% | |
| 3Y Return (annualized) | +10.17% | +21.70% | |
| 5Y Return (annualized) | -0.59% | +12.98% | |
| Volatility (annualized) | 13.5% | 15.3% | |
| Max Drawdown | -49.0% | -56.5% | |
| Fund Family | Nuveen | State Street Investment Management | |
| Category | Tax Preferred | Equity | |
| Inception | Nov 22, 2002 | Jan 22, 1993 |
NKX vs SPY Performance
Nuveen California AMT-Free Quality Municipal Income Fund (NKX) 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 NKX returned +10.04% while SPY returned +20.83%. Year to date, NKX is up 1.05% versus a gain of 12.22% for SPY.
Over three years, NKX compounded at +10.17% per year against +21.70% for SPY; over five years the annualized figures are -0.59% and +12.98% respectively. Across the full 24-year window we track, SPY has the edge at +8.79% annualized vs +0.39%. 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 13.5% for NKX. 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 -49.0% for NKX 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 0.28. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
NKX charges 4.02% per year while SPY charges 0.09%. On a $10,000 position that is $402 vs $9 annually, a gap of $393 per year that compounds over a long holding period. On income, NKX currently yields 7.71% against 1.01% for SPY.
Holdings Overlap
NKX and SPY share 0 holdings out of 605 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, NKX or SPY?
NKX has an expense ratio of 4.02% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $393 per year of difference.
Which performed better, NKX or SPY?
Over the past year NKX returned +10.04% vs +20.83% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (24 years), NKX annualized +0.39% vs +8.79% for SPY. Past performance does not guarantee future results.
Which is riskier, NKX or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 13.5% for NKX. Worst drawdown: NKX -49.0% vs SPY -56.5%.
Should I hold both NKX and SPY?
NKX and SPY have a monthly-return correlation of 0.28, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NKX and SPY?
NKX and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 605 unique securities.
Which pays a higher dividend, NKX or SPY?
NKX yields 7.71% while SPY yields 1.01%, so NKX currently pays the higher dividend yield.
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