RFMZ vs SPY
RiverNorth Flexible Municipal Income Fund II 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 | RFMZ | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 4.27% | 0.09% | |
| AUM | $351M | $821.1B | |
| Dividend Yield | 6.94% | 1.01% | |
| Holdings | 126 | 505 | |
| YTD Return | +8.36% | +12.68% | |
| 1Y Return | +13.76% | +21.82% | |
| 3Y Return (annualized) | +6.67% | +21.98% | |
| 5Y Return (annualized) | -2.16% | +12.89% | |
| Volatility (annualized) | 15.1% | 15.3% | |
| Max Drawdown | -39.5% | -56.5% | |
| Fund Family | RiverNorth | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Feb 24, 2021 | Jan 22, 1993 |
RFMZ vs SPY Performance
RiverNorth Flexible Municipal Income Fund II Inc (RFMZ) 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 RFMZ returned +13.76% while SPY returned +21.82%. Year to date, RFMZ is up 8.36% versus a gain of 12.68% for SPY.
Over three years, RFMZ compounded at +6.67% per year against +21.98% for SPY; over five years the annualized figures are -2.16% and +12.89% respectively. Across the full 6-year window we track, SPY has the edge at +8.81% annualized vs -0.45%. 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 15.1% for RFMZ. 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 -39.5% for RFMZ 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 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
RFMZ charges 4.27% per year while SPY charges 0.09%. On a $10,000 position that is $427 vs $9 annually, a gap of $418 per year that compounds over a long holding period. On income, RFMZ currently yields 6.94% against 1.01% for SPY.
Holdings Overlap
RFMZ and SPY share 0 holdings out of 563 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, RFMZ or SPY?
RFMZ has an expense ratio of 4.27% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $418 per year of difference.
Which performed better, RFMZ or SPY?
Over the past year RFMZ returned +13.76% vs +21.82% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (6 years), RFMZ annualized -0.45% vs +8.81% for SPY. Past performance does not guarantee future results.
Which is riskier, RFMZ or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 15.1% for RFMZ. Worst drawdown: RFMZ -39.5% vs SPY -56.5%.
Should I hold both RFMZ and SPY?
RFMZ and SPY have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between RFMZ and SPY?
RFMZ and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 563 unique securities.
Which pays a higher dividend, RFMZ or SPY?
RFMZ yields 6.94% while SPY yields 1.01%, so RFMZ currently pays the higher dividend yield.
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