SPY vs TAFM
State Street SPDR S&P 500 ETF Trust vs AB Tax-Aware Intermediate Municipal ETF
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. TAFM offers more diversification with 672 holdings.
Side-by-Side Comparison
| Metric | SPY | TAFM | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.28% | |
| AUM | $821.1B | $741M | |
| Dividend Yield | 1.01% | 3.68% | |
| Holdings | 505 | 672 | |
| YTD Return | +12.68% | +0.91% | |
| 1Y Return | +21.82% | +5.60% | |
| 3Y Return (annualized) | +21.98% | - | |
| 5Y Return (annualized) | +12.89% | - | |
| Volatility (annualized) | 15.3% | 4.0% | |
| Max Drawdown | -56.5% | -4.7% | |
| Fund Family | State Street Investment Management | AllianceBernstein L.P. | |
| Category | Equity | Tax Preferred | |
| Inception | Jan 22, 1993 | Dec 13, 2023 |
SPY vs TAFM Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and AB Tax-Aware Intermediate Municipal ETF (TAFM) is a ETF from AllianceBernstein L.P.. Over the past year SPY returned +21.82% while TAFM returned +5.60%. Year to date, SPY is up 12.68% versus a gain of 0.91% for TAFM.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 4.0% for TAFM. 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 -4.7% for TAFM. 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 0.52. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while TAFM 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 3.68% for TAFM.
Holdings Overlap
SPY and TAFM share 0 holdings out of 725 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 TAFM?
SPY has an expense ratio of 0.09% while TAFM 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 TAFM?
Over the past year SPY returned +21.82% vs +5.60% for TAFM, so SPY leads on 1-year performance. Over the longest common window we track (3 years), SPY annualized +8.81% vs +3.47% for TAFM. Past performance does not guarantee future results.
Which is riskier, SPY or TAFM?
SPY has been the more volatile fund at 15.3% annualized versus 4.0% for TAFM. Worst drawdown: SPY -56.5% vs TAFM -4.7%.
Should I hold both SPY and TAFM?
SPY and TAFM have a monthly-return correlation of 0.52, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and TAFM?
SPY and TAFM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 725 unique securities.
Which pays a higher dividend, SPY or TAFM?
SPY yields 1.01% while TAFM yields 3.68%, so TAFM currently pays the higher dividend yield.
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