SPY vs SUB
SPY vs SUB
State Street SPDR S&P 500 ETF Trust vs iShares Short-Term National Muni Bond ETF
Quick Verdict
SUB has a lower expense ratio. SPY delivered stronger 1-year returns. SUB offers more diversification with 783 holdings.
Side-by-Side Comparison
| Metric | SPY | SUB | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.07% | |
| AUM | $789.1B | $11.3B | |
| Dividend Yield | 1.01% | 2.52% | |
| Holdings | 505 | 2,925 | |
| YTD Return | +13.79% | +0.84% | |
| 1Y Return | +23.66% | +1.82% | |
| 3Y Return (annualized) | +21.40% | +3.08% | |
| 5Y Return (annualized) | +13.37% | +1.43% | |
| Volatility (annualized) | 15.3% | 1.7% | |
| Max Drawdown | -56.5% | -11.7% | |
| Fund Family | State Street Investment Management | iShares by BlackRock (US) | |
| Category | Equity | Tax Preferred | |
| Inception | Jan 22, 1993 | Nov 5, 2008 |
SPY vs SUB Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and iShares Short-Term National Muni Bond ETF (SUB) is a ETF from iShares by BlackRock (US). Over the past year SPY returned +23.66% while SUB returned +1.82%. Year to date, SPY is up 13.79% versus a gain of 0.84% for SUB.
Over three years, SPY compounded at +21.40% per year against +3.08% for SUB; over five years the annualized figures are +13.37% and +1.43% respectively. Across the full 18-year window we track, SPY has the edge at +8.85% annualized vs +0.81%. 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 1.7% for SUB. 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 -56.5% for SPY and -11.7% for SUB. 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 0.24. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while SUB charges 0.07%. On a $10,000 position that is $9 vs $7 annually, a gap of $2 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 2.52% for SUB.
Holdings Overlap
SPY and SUB share 0 holdings out of 1286 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, SPY or SUB?
SPY has an expense ratio of 0.09% while SUB charges 0.07%. SUB is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, SPY or SUB?
Over the past year SPY returned +23.66% vs +1.82% for SUB, so SPY leads on 1-year performance. Over the longest common window we track (18 years), SPY annualized +8.85% vs +0.81% for SUB. Past performance does not guarantee future results.
Which is riskier, SPY or SUB?
SPY has been the more volatile fund at 15.3% annualized versus 1.7% for SUB. Worst drawdown: SPY -56.5% vs SUB -11.7%.
Should I hold both SPY and SUB?
SPY and SUB have a monthly-return correlation of 0.24, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and SUB?
SPY and SUB share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1286 unique securities.
Which pays a higher dividend, SPY or SUB?
SPY yields 1.01% while SUB yields 2.52%, so SUB currently pays the higher dividend yield.
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