NZF vs SPY
Nuveen Municipal Credit 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. NZF offers more diversification with 671 holdings.
Side-by-Side Comparison
| Metric | NZF | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 3.61% | 0.09% | |
| AUM | - | $821.1B | |
| Dividend Yield | 7.78% | 1.01% | |
| Holdings | 671 | 505 | |
| YTD Return | +2.10% | +12.22% | |
| 1Y Return | +12.74% | +20.83% | |
| 3Y Return (annualized) | +10.80% | +21.70% | |
| 5Y Return (annualized) | -0.70% | +12.98% | |
| Volatility (annualized) | 13.0% | 15.3% | |
| Max Drawdown | -53.7% | -56.5% | |
| Fund Family | Nuveen | State Street Investment Management | |
| Category | Tax Preferred | Equity | |
| Inception | Sep 25, 2001 | Jan 22, 1993 |
NZF vs SPY Performance
Nuveen Municipal Credit Income Fund (NZF) 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 NZF returned +12.74% while SPY returned +20.83%. Year to date, NZF is up 2.10% versus a gain of 12.22% for SPY.
Over three years, NZF compounded at +10.80% per year against +21.70% for SPY; over five years the annualized figures are -0.70% and +12.98% respectively. Across the full 25-year window we track, SPY has the edge at +8.79% annualized vs +0.55%. 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 13.0% for NZF. 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 -53.7% for NZF 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 0.27. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
NZF charges 3.61% per year while SPY charges 0.09%. On a $10,000 position that is $361 vs $9 annually, a gap of $352 per year that compounds over a long holding period. On income, NZF currently yields 7.78% against 1.01% for SPY.
Holdings Overlap
NZF and SPY share 0 holdings out of 758 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, NZF or SPY?
NZF has an expense ratio of 3.61% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $352 per year of difference.
Which performed better, NZF or SPY?
Over the past year NZF returned +12.74% vs +20.83% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (25 years), NZF annualized +0.55% vs +8.79% for SPY. Past performance does not guarantee future results.
Which is riskier, NZF or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 13.0% for NZF. Worst drawdown: NZF -53.7% vs SPY -56.5%.
Should I hold both NZF and SPY?
NZF and SPY have a monthly-return correlation of 0.27, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NZF and SPY?
NZF and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 758 unique securities.
Which pays a higher dividend, NZF or SPY?
NZF yields 7.78% while SPY yields 1.01%, so NZF currently pays the higher dividend yield.
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