SPY vs TAXF
State Street SPDR S&P 500 ETF Trust vs American Century Diversified Municipal Bond ETF
Which is better, SPY or TAXF?
Large Cap Blend against Municipal Bond.
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y 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 | TAXF |
|---|---|---|
| Expense Ratio | 0.09%Best | 0.25% |
| AUM | $804.7B | $680M |
| Dividend Yield | 0.98% | 3.88% |
| Holdings | 505 | 785 |
| YTD Return | +12.47%Best | -1.54% |
| 1Y Return | +17.51%Best | +0.50% |
| 3Y Return (annualized) | +21.18%Best | +3.12% |
| 5Y Return (annualized) | +12.88%Best | +0.27% |
| Volatility (annualized) | 16.9% | 6.0%Best |
| Max Drawdown | -34.1% | -13.9%Best |
| $10,000 over 5 years | $18,327Best | $10,136 |
| Fund Family | State Street Investment Management | American Century Investments |
| Category | Equity | Tax Preferred |
| Style | Large Cap Blend | Municipal Bond |
| Inception | Jan 22, 1993 | Sep 10, 2018 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Sep 12, 2018 to Sep 11, 2026 (8 years).
SPY vs TAXF 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 is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
SPY vs TAXF Performance
State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management and American Century Diversified Municipal Bond ETF (TAXF) is an ETF from American Century Investments. Over the past year SPY returned +17.51% while TAXF returned +0.50%. Year to date, SPY is up 12.47% versus a loss of 1.54% for TAXF.
Over three years, SPY compounded at +21.18% per year against +3.12% for TAXF; over five years the annualized figures are +12.88% and +0.27% respectively. Across the full 8-year window we track, SPY has the edge at +13.98% annualized vs +1.60%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 16.9% compared with 6.0% for TAXF. 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 -34.1% for SPY and -13.9% for TAXF. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.52. They move together some of the time, and apart the rest.
Fees and Cost Over Time
SPY charges 0.09% per year while TAXF charges 0.25%. On a $10,000 position that is $9 vs $25 annually, a gap of $16 per year that compounds over a long holding period. On income, SPY currently yields 0.98% against 3.88% for TAXF.
Holdings Overlap
We hold position weights for 504 holdings in SPY and 482 in TAXF, totalling 100.0% and 54.3% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 504 positions we hold weights for in SPY and 482 in TAXF, against full books of 505 and 785.
You are not choosing between two funds in isolation.
Whichever of SPY and TAXF 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 TAXF?
SPY has an expense ratio of 0.09% while TAXF charges 0.25%. SPY is the cheaper option, by $16 a year on a $10,000 investment.
Which performed better, SPY or TAXF?
Over the past year SPY returned +17.51% vs +0.50% for TAXF, so SPY leads on 1-year performance. Over the longest common window we track (8 years), SPY annualized +13.98% vs +1.60% for TAXF. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SPY or TAXF?
SPY has been the more volatile fund at 16.9% annualized versus 6.0% for TAXF. Worst drawdown: SPY -34.1% vs TAXF -13.9%.
Should I hold both SPY and TAXF?
SPY and TAXF have a monthly-return correlation of 0.52, 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 TAXF?
SPY yields 0.98% while TAXF yields 3.88%, so TAXF currently pays the higher dividend yield.
Is TAXF better than SPY?
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.