NMCO vs SPY
NMCO vs SPY
Nuveen Municipal Credit Opportunities 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 | NMCO | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 4.50% | 0.09% | |
| AUM | - | $789.1B | |
| Dividend Yield | 7.60% | 1.01% | |
| Holdings | 430 | 505 | |
| YTD Return | +7.53% | +13.79% | |
| 1Y Return | +12.13% | +23.66% | |
| 3Y Return (annualized) | +4.91% | +21.40% | |
| 5Y Return (annualized) | -1.71% | +13.37% | |
| Volatility (annualized) | 20.2% | 15.3% | |
| Max Drawdown | -43.0% | -56.5% | |
| Fund Family | Nuveen | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Sep 16, 2019 | Jan 22, 1993 |
NMCO vs SPY Performance
Nuveen Municipal Credit Opportunities Fund (NMCO) 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 NMCO returned +12.13% while SPY returned +23.66%. Year to date, NMCO is up 7.53% versus a gain of 13.79% for SPY.
Over three years, NMCO compounded at +4.91% per year against +21.40% for SPY; over five years the annualized figures are -1.71% and +13.37% respectively. Across the full 7-year window we track, SPY has the edge at +8.85% annualized vs -0.38%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
NMCO has been the more volatile fund, with annualized monthly volatility of 20.2% 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 -43.0% for NMCO 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 0.59. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
NMCO charges 4.50% per year while SPY charges 0.09%. On a $10,000 position that is $450 vs $9 annually, a gap of $441 per year that compounds over a long holding period. On income, NMCO currently yields 7.60% against 1.01% for SPY.
Holdings Overlap
NMCO and SPY share 0 holdings out of 658 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, NMCO or SPY?
NMCO has an expense ratio of 4.50% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $441 per year of difference.
Which performed better, NMCO or SPY?
Over the past year NMCO returned +12.13% vs +23.66% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (7 years), NMCO annualized -0.38% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, NMCO or SPY?
NMCO has been the more volatile fund at 20.2% annualized versus 15.3% for SPY. Worst drawdown: NMCO -43.0% vs SPY -56.5%.
Should I hold both NMCO and SPY?
NMCO and SPY have a monthly-return correlation of 0.59, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NMCO and SPY?
NMCO and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 658 unique securities.
Which pays a higher dividend, NMCO or SPY?
NMCO yields 7.60% while SPY yields 1.01%, so NMCO currently pays the higher dividend yield.
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