SMI vs SPY
HIP Sustainable Muni ETF 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 | SMI | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.24% | 0.09% | |
| AUM | $11M | $821.1B | |
| Dividend Yield | 2.83% | 1.01% | |
| Holdings | 37 | 505 | |
| YTD Return | -3.75% | +12.22% | |
| 1Y Return | -4.39% | +20.83% | |
| 3Y Return (annualized) | -0.50% | +21.70% | |
| 5Y Return (annualized) | - | +12.98% | |
| Volatility (annualized) | 6.6% | 15.3% | |
| Max Drawdown | -14.2% | -56.5% | |
| Fund Family | VanEck | State Street Investment Management | |
| Category | Tax Preferred | Equity | |
| Inception | Sep 8, 2021 | Jan 22, 1993 |
SMI vs SPY Performance
HIP Sustainable Muni ETF (SMI) is a ETF from VanEck and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year SMI returned -4.39% while SPY returned +20.83%. Year to date, SMI is down 3.75% versus a gain of 12.22% for SPY.
Over three years, SMI compounded at -0.50% per year against +21.70% for SPY. Across the full 4-year window we track, SPY has the edge at +8.79% annualized vs -3.15%. 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 6.6% for SMI. 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 -14.2% for SMI 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SMI charges 0.24% per year while SPY charges 0.09%. On a $10,000 position that is $24 vs $9 annually, a gap of $15 per year that compounds over a long holding period. On income, SMI currently yields 2.83% against 1.01% for SPY.
Frequently Asked Questions
Which is cheaper, SMI or SPY?
SMI has an expense ratio of 0.24% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $15 per year of difference.
Which performed better, SMI or SPY?
Over the past year SMI returned -4.39% vs +20.83% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (4 years), SMI annualized -3.15% vs +8.79% for SPY. Past performance does not guarantee future results.
Which is riskier, SMI or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 6.6% for SMI. Worst drawdown: SMI -14.2% vs SPY -56.5%.
Should I hold both SMI and SPY?
SMI and SPY have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, SMI or SPY?
SMI yields 2.83% while SPY yields 1.01%, so SMI currently pays the higher dividend yield.
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