SPY vs TAXI
State Street SPDR S&P 500 ETF Trust vs Northern Trust Intermediate Tax-Exempt Bond ETF
Quick Verdict
TAXI has a lower expense ratio. SPY delivered stronger 1-year returns. TAXI offers more diversification with 2,035 holdings.
Side-by-Side Comparison
| Metric | SPY | TAXI | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.05% | |
| AUM | $821.1B | $164M | |
| Dividend Yield | 1.01% | 2.27% | |
| Holdings | 505 | 2,035 | |
| YTD Return | +12.68% | +0.08% | |
| 1Y Return | +21.82% | +3.63% | |
| 3Y Return (annualized) | +21.98% | - | |
| 5Y Return (annualized) | +12.89% | - | |
| Volatility (annualized) | 15.3% | 3.3% | |
| Max Drawdown | -56.5% | -2.2% | |
| Fund Family | State Street Investment Management | Northern Trust Asset Management | |
| Category | Equity | Fixed Income | |
| Inception | Jan 22, 1993 | Mar 1, 2025 |
SPY vs TAXI Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Northern Trust Intermediate Tax-Exempt Bond ETF (TAXI) is a ETF from Northern Trust Asset Management. Over the past year SPY returned +21.82% while TAXI returned +3.63%. Year to date, SPY is up 12.68% versus a gain of 0.08% for TAXI.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 3.3% for TAXI. 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 -2.2% for TAXI. 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 0.53. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while TAXI charges 0.05%. On a $10,000 position that is $9 vs $5 annually, a gap of $4 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 2.27% for TAXI.
Holdings Overlap
SPY and TAXI share 0 holdings out of 1019 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 TAXI?
SPY has an expense ratio of 0.09% while TAXI charges 0.05%. TAXI is the cheaper option. On a $10,000 investment, that is $4 per year of difference.
Which performed better, SPY or TAXI?
Over the past year SPY returned +21.82% vs +3.63% for TAXI, so SPY leads on 1-year performance. Over the longest common window we track (1 years), SPY annualized +8.81% vs +3.57% for TAXI. Past performance does not guarantee future results.
Which is riskier, SPY or TAXI?
SPY has been the more volatile fund at 15.3% annualized versus 3.3% for TAXI. Worst drawdown: SPY -56.5% vs TAXI -2.2%.
Should I hold both SPY and TAXI?
SPY and TAXI have a monthly-return correlation of 0.53, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and TAXI?
SPY and TAXI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1019 unique securities.
Which pays a higher dividend, SPY or TAXI?
SPY yields 1.01% while TAXI yields 2.27%, so TAXI currently pays the higher dividend yield.
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