SMMU vs SPY
PIMCO Short Term Municipal Bond Active Exchange-Traded 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 505 holdings.
Side-by-Side Comparison
| Metric | SMMU | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.09% | |
| AUM | $1.2B | $821.1B | |
| Dividend Yield | 2.89% | 1.01% | |
| Holdings | 338 | 505 | |
| YTD Return | +1.27% | +12.68% | |
| 1Y Return | +2.69% | +21.82% | |
| 3Y Return (annualized) | +3.66% | +21.98% | |
| 5Y Return (annualized) | +1.93% | +12.89% | |
| Volatility (annualized) | 1.6% | 15.3% | |
| Max Drawdown | -5.1% | -56.5% | |
| Fund Family | PIMCO (US) | State Street Investment Management | |
| Category | Tax Preferred | Equity | |
| Inception | Feb 1, 2010 | Jan 22, 1993 |
SMMU vs SPY Performance
PIMCO Short Term Municipal Bond Active Exchange-Traded Fund (SMMU) is a ETF from PIMCO (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year SMMU returned +2.69% while SPY returned +21.82%. Year to date, SMMU is up 1.27% versus a gain of 12.68% for SPY.
Over three years, SMMU compounded at +3.66% per year against +21.98% for SPY; over five years the annualized figures are +1.93% and +12.89% respectively. Across the full 17-year window we track, SPY has the edge at +8.81% annualized vs +0.78%. 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 1.6% for SMMU. 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 -5.1% for SMMU 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
SMMU charges 0.35% per year while SPY charges 0.09%. On a $10,000 position that is $35 vs $9 annually, a gap of $26 per year that compounds over a long holding period. On income, SMMU currently yields 2.89% against 1.01% for SPY.
Holdings Overlap
SMMU and SPY share 0 holdings out of 720 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, SMMU or SPY?
SMMU has an expense ratio of 0.35% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $26 per year of difference.
Which performed better, SMMU or SPY?
Over the past year SMMU returned +2.69% vs +21.82% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (17 years), SMMU annualized +0.78% vs +8.81% for SPY. Past performance does not guarantee future results.
Which is riskier, SMMU or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 1.6% for SMMU. Worst drawdown: SMMU -5.1% vs SPY -56.5%.
Should I hold both SMMU and SPY?
SMMU 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 SMMU and SPY?
SMMU and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 720 unique securities.
Which pays a higher dividend, SMMU or SPY?
SMMU yields 2.89% while SPY yields 1.01%, so SMMU currently pays the higher dividend yield.
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