NMZ vs SPY
NMZ vs SPY
Nuveen Municipal High Income Opportunity 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 | NMZ | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 3.75% | 0.09% | |
| AUM | - | $789.1B | |
| Dividend Yield | 7.49% | 1.01% | |
| Holdings | 893 | 505 | |
| YTD Return | +5.42% | +13.79% | |
| 1Y Return | +10.50% | +23.66% | |
| 3Y Return (annualized) | +6.76% | +21.40% | |
| 5Y Return (annualized) | -1.81% | +13.37% | |
| Volatility (annualized) | 14.1% | 15.3% | |
| Max Drawdown | -63.5% | -56.5% | |
| Fund Family | Nuveen | State Street Investment Management | |
| Category | Tax Preferred | Equity | |
| Inception | Nov 19, 2003 | Jan 22, 1993 |
NMZ vs SPY Performance
Nuveen Municipal High Income Opportunity Fund (NMZ) 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 NMZ returned +10.50% while SPY returned +23.66%. Year to date, NMZ is up 5.42% versus a gain of 13.79% for SPY.
Over three years, NMZ compounded at +6.76% per year against +21.40% for SPY; over five years the annualized figures are -1.81% and +13.37% respectively. Across the full 23-year window we track, SPY has the edge at +8.85% annualized vs -0.23%. 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 14.1% for NMZ. 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 -63.5% for NMZ 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 0.40. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
NMZ charges 3.75% per year while SPY charges 0.09%. On a $10,000 position that is $375 vs $9 annually, a gap of $366 per year that compounds over a long holding period. On income, NMZ currently yields 7.49% against 1.01% for SPY.
Holdings Overlap
NMZ and SPY share 0 holdings out of 738 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, NMZ or SPY?
NMZ has an expense ratio of 3.75% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $366 per year of difference.
Which performed better, NMZ or SPY?
Over the past year NMZ returned +10.50% vs +23.66% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (23 years), NMZ annualized -0.23% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, NMZ or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 14.1% for NMZ. Worst drawdown: NMZ -63.5% vs SPY -56.5%.
Should I hold both NMZ and SPY?
NMZ and SPY have a monthly-return correlation of 0.40, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NMZ and SPY?
NMZ and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 738 unique securities.
Which pays a higher dividend, NMZ or SPY?
NMZ yields 7.49% while SPY yields 1.01%, so NMZ currently pays the higher dividend yield.
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