RFM vs SPY
RiverNorth Flexible 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 505 holdings.
Side-by-Side Comparison
| Metric | RFM | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 3.68% | 0.09% | |
| AUM | $97M | $821.1B | |
| Dividend Yield | 6.92% | 1.01% | |
| Holdings | 93 | 505 | |
| YTD Return | +8.24% | +12.22% | |
| 1Y Return | +13.46% | +20.83% | |
| 3Y Return (annualized) | +5.32% | +21.70% | |
| 5Y Return (annualized) | -1.32% | +12.98% | |
| Volatility (annualized) | 15.0% | 15.3% | |
| Max Drawdown | -33.8% | -56.5% | |
| Fund Family | RiverNorth | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Mar 26, 2020 | Jan 22, 1993 |
RFM vs SPY Performance
RiverNorth Flexible Municipal Income Fund, Inc. (RFM) is a ETF from RiverNorth and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year RFM returned +13.46% while SPY returned +20.83%. Year to date, RFM is up 8.24% versus a gain of 12.22% for SPY.
Over three years, RFM compounded at +5.32% per year against +21.70% for SPY; over five years the annualized figures are -1.32% and +12.98% respectively. Across the full 6-year window we track, SPY has the edge at +8.79% annualized vs +2.34%. 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 15.0% for RFM. 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 -33.8% for RFM 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
RFM charges 3.68% per year while SPY charges 0.09%. On a $10,000 position that is $368 vs $9 annually, a gap of $359 per year that compounds over a long holding period. On income, RFM currently yields 6.92% against 1.01% for SPY.
Holdings Overlap
RFM and SPY share 0 holdings out of 551 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, RFM or SPY?
RFM has an expense ratio of 3.68% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $359 per year of difference.
Which performed better, RFM or SPY?
Over the past year RFM returned +13.46% vs +20.83% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (6 years), RFM annualized +2.34% vs +8.79% for SPY. Past performance does not guarantee future results.
Which is riskier, RFM or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 15.0% for RFM. Worst drawdown: RFM -33.8% vs SPY -56.5%.
Should I hold both RFM and SPY?
RFM and SPY have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between RFM and SPY?
RFM and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 551 unique securities.
Which pays a higher dividend, RFM or SPY?
RFM yields 6.92% while SPY yields 1.01%, so RFM currently pays the higher dividend yield.
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