SPY vs TAFL
State Street SPDR S&P 500 ETF Trust vs AB Tax-Aware Long Municipal ETF
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 | SPY | TAFL | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.28% | |
| AUM | $821.1B | $65M | |
| Dividend Yield | 1.01% | 4.15% | |
| Holdings | 505 | 156 | |
| YTD Return | +12.22% | +1.20% | |
| 1Y Return | +20.83% | +7.01% | |
| 3Y Return (annualized) | +21.70% | - | |
| 5Y Return (annualized) | +12.98% | - | |
| Volatility (annualized) | 15.3% | 4.8% | |
| Max Drawdown | -56.5% | -6.3% | |
| Fund Family | State Street Investment Management | AllianceBernstein L.P. | |
| Category | Equity | Tax Preferred | |
| Inception | Jan 22, 1993 | Dec 13, 2023 |
SPY vs TAFL Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and AB Tax-Aware Long Municipal ETF (TAFL) is a ETF from AllianceBernstein L.P.. Over the past year SPY returned +20.83% while TAFL returned +7.01%. Year to date, SPY is up 12.22% versus a gain of 1.20% for TAFL.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 4.8% for TAFL. 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 -6.3% for TAFL. 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 0.47. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while TAFL charges 0.28%. On a $10,000 position that is $9 vs $28 annually, a gap of $19 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 4.15% for TAFL.
Holdings Overlap
SPY and TAFL share 0 holdings out of 571 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 TAFL?
SPY has an expense ratio of 0.09% while TAFL charges 0.28%. SPY is the cheaper option. On a $10,000 investment, that is $19 per year of difference.
Which performed better, SPY or TAFL?
Over the past year SPY returned +20.83% vs +7.01% for TAFL, so SPY leads on 1-year performance. Over the longest common window we track (3 years), SPY annualized +8.79% vs +3.24% for TAFL. Past performance does not guarantee future results.
Which is riskier, SPY or TAFL?
SPY has been the more volatile fund at 15.3% annualized versus 4.8% for TAFL. Worst drawdown: SPY -56.5% vs TAFL -6.3%.
Should I hold both SPY and TAFL?
SPY and TAFL have a monthly-return correlation of 0.47, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and TAFL?
SPY and TAFL share 0 common holdings with a 0.0% weight overlap. Combined, they hold 571 unique securities.
Which pays a higher dividend, SPY or TAFL?
SPY yields 1.01% while TAFL yields 4.15%, so TAFL currently pays the higher dividend yield.
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