NMI vs SPY
Nuveen Municipal Income Fund Inc. 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 | NMI | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.73% | 0.09% | |
| AUM | - | $789.1B | |
| Dividend Yield | 4.57% | 1.01% | |
| Holdings | 220 | 505 | |
| YTD Return | +10.41% | +13.39% | |
| 1Y Return | +14.14% | +22.52% | |
| 3Y Return (annualized) | +9.57% | +21.36% | |
| 5Y Return (annualized) | +1.91% | +13.19% | |
| Volatility (annualized) | 11.0% | 15.3% | |
| Max Drawdown | -34.4% | -56.5% | |
| Fund Family | Nuveen | State Street Investment Management | |
| Category | Tax Preferred | Equity | |
| Inception | Apr 20, 1988 | Jan 22, 1993 |
NMI vs SPY Performance
Nuveen Municipal Income Fund Inc. (NMI) 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 NMI returned +14.14% while SPY returned +22.52%. Year to date, NMI is up 10.41% versus a gain of 13.39% for SPY.
Over three years, NMI compounded at +9.57% per year against +21.36% for SPY; over five years the annualized figures are +1.91% and +13.19% respectively. Across the full 31-year window we track, SPY has the edge at +8.84% annualized vs +0.36%. 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 11.0% for NMI. 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 -34.4% for NMI 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 0.04. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
NMI charges 0.73% per year while SPY charges 0.09%. On a $10,000 position that is $73 vs $9 annually, a gap of $64 per year that compounds over a long holding period. On income, NMI currently yields 4.57% against 1.01% for SPY.
Holdings Overlap
NMI and SPY share 0 holdings out of 598 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, NMI or SPY?
NMI has an expense ratio of 0.73% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $64 per year of difference.
Which performed better, NMI or SPY?
Over the past year NMI returned +14.14% vs +22.52% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (31 years), NMI annualized +0.36% vs +8.84% for SPY. Past performance does not guarantee future results.
Which is riskier, NMI or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 11.0% for NMI. Worst drawdown: NMI -34.4% vs SPY -56.5%.
Should I hold both NMI and SPY?
NMI and SPY have a monthly-return correlation of 0.04, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NMI and SPY?
NMI and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 598 unique securities.
Which pays a higher dividend, NMI or SPY?
NMI yields 4.57% while SPY yields 1.01%, so NMI currently pays the higher dividend yield.
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