SPY vs TAFI
State Street SPDR S&P 500 ETF Trust vs AB Tax Aware Short Duration Municipal ETF
Which is better, SPY or TAFI?
Large Cap Blend against Municipal Bond.
SPY has a lower expense ratio. SPY led over 1Y, 3Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | SPY | TAFI |
|---|---|---|
| Expense Ratio | 0.09%Best | 0.27% |
| AUM | $804.7B | $1.4B |
| Dividend Yield | 0.98% | 3.12% |
| Holdings | 505 | 711 |
| YTD Return | +13.82%Best | +0.39% |
| 1Y Return | +16.96%Best | +0.87% |
| 3Y Return (annualized) | +22.97%Best | +3.43% |
| 5Y Return (annualized) | +13.73% | - |
| Volatility (annualized) | 13.2% | 2.3%Best |
| Max Drawdown | -18.8% | -1.9%Best |
| $10,000 over 4 years | $21,021Best | $11,264 |
| Fund Family | State Street Investment Management | AllianceBernstein L.P. |
| Category | Equity | Tax Preferred |
| Style | Large Cap Blend | Municipal Bond |
| Inception | Jan 22, 1993 | Sep 13, 2022 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown, and the $10,000 over 4 years row, are measured over the window both funds cover: Sep 16, 2022 to Sep 21, 2026 (4 years).
SPY vs TAFI growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 4 years both funds cover.
SPY vs TAFI Performance
State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management and AB Tax Aware Short Duration Municipal ETF (TAFI) is an ETF from AllianceBernstein L.P.. Over the past year SPY returned +16.96% while TAFI returned +0.87%. Year to date, SPY is up 13.82% versus a gain of 0.39% for TAFI.
Over three years, SPY compounded at +22.97% per year against +3.43% for TAFI. Across the full 4-year window we track, SPY has the edge at +20.41% annualized vs +3.02%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 13.2% compared with 2.3% for TAFI. 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 -18.8% for SPY and -1.9% for TAFI. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.58. They move together some of the time, and apart the rest.
Fees and Cost Over Time
SPY charges 0.09% per year while TAFI charges 0.27%. On a $10,000 position that is $9 vs $27 annually, a gap of $18 per year that compounds over a long holding period. On income, SPY currently yields 0.98% against 3.12% for TAFI.
Holdings Overlap
At least 0.3% of SPY's money is in holdings TAFI also owns.
Stated as a floor: for TAFI, our book for it covers 25.8% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
We cannot see either book well enough to say how much of this pair is duplicated.
The two holdings books were reported 63 days apart, SPY as of Sep 1, 2026 and TAFI as of Jun 30, 2026, so some of the difference between them is the time between the two reports rather than the funds.
1 positions in common, counted across the 504 positions we hold weights for in SPY and 180 in TAFI, against full books of 505 and 711.
Top Shared Holdings
| Stock | Weight in SPY | Weight in TAFI | Difference |
|---|---|---|---|
| CCitigroup Inc V/R /Perp | 0.34% | 0.01% | 0.33% |
You are not choosing between two funds in isolation.
Whichever of SPY and TAFI you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, SPY or TAFI?
SPY has an expense ratio of 0.09% while TAFI charges 0.27%. SPY is the cheaper option, by $18 a year on a $10,000 investment.
Which performed better, SPY or TAFI?
Over the past year SPY returned +16.96% vs +0.87% for TAFI, so SPY leads on 1-year performance. Over the longest common window we track (4 years), SPY annualized +20.41% vs +3.02% for TAFI. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SPY or TAFI?
SPY has been the more volatile fund at 13.2% annualized versus 2.3% for TAFI. Worst drawdown: SPY -18.8% vs TAFI -1.9%.
Should I hold both SPY and TAFI?
SPY and TAFI have a monthly-return correlation of 0.58, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, SPY or TAFI?
SPY yields 0.98% while TAFI yields 3.12%, so TAFI currently pays the higher dividend yield.
Is TAFI better than SPY?
SPY has a lower expense ratio. SPY led over 1Y, 3Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.