SPY vs TAXS
State Street SPDR S&P 500 ETF Trust vs Northern Trust Short Term Tax-Exempt Bond ETF
Quick Verdict
TAXS has a lower expense ratio. SPY delivered stronger 1-year returns. TAXS offers more diversification with 1,098 holdings.
Side-by-Side Comparison
| Metric | SPY | TAXS | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.05% | |
| AUM | $821.1B | $131M | |
| Dividend Yield | 1.01% | 2.04% | |
| Holdings | 505 | 1,098 | |
| YTD Return | +12.68% | +1.19% | |
| 1Y Return | +21.82% | +2.47% | |
| 3Y Return (annualized) | +21.98% | - | |
| 5Y Return (annualized) | +12.89% | - | |
| Volatility (annualized) | 15.3% | 1.4% | |
| Max Drawdown | -56.5% | -0.8% | |
| Fund Family | State Street Investment Management | Northern Trust Asset Management | |
| Category | Equity | Fixed Income | |
| Inception | Jan 22, 1993 | Mar 1, 2025 |
SPY vs TAXS Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Northern Trust Short Term Tax-Exempt Bond ETF (TAXS) is a ETF from Northern Trust Asset Management. Over the past year SPY returned +21.82% while TAXS returned +2.47%. Year to date, SPY is up 12.68% versus a gain of 1.19% for TAXS.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 1.4% for TAXS. 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 -0.8% for TAXS. 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 0.28. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while TAXS 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 2.04% for TAXS.
Holdings Overlap
SPY and TAXS share 0 holdings out of 862 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 TAXS?
SPY has an expense ratio of 0.09% while TAXS charges 0.05%. TAXS is the cheaper option. On a $10,000 investment, that is $4 per year of difference.
Which performed better, SPY or TAXS?
Over the past year SPY returned +21.82% vs +2.47% for TAXS, so SPY leads on 1-year performance. Over the longest common window we track (1 years), SPY annualized +8.81% vs +2.50% for TAXS. Past performance does not guarantee future results.
Which is riskier, SPY or TAXS?
SPY has been the more volatile fund at 15.3% annualized versus 1.4% for TAXS. Worst drawdown: SPY -56.5% vs TAXS -0.8%.
Should I hold both SPY and TAXS?
SPY and TAXS have a monthly-return correlation of 0.28, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and TAXS?
SPY and TAXS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 862 unique securities.
Which pays a higher dividend, SPY or TAXS?
SPY yields 1.01% while TAXS yields 2.04%, so TAXS currently pays the higher dividend yield.
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