SPY vs TAXX
State Street SPDR S&P 500 ETF Trust vs BondBloxx IR+M Tax-Aware Short Duration 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 | TAXX | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.35% | |
| AUM | $821.1B | $286M | |
| Dividend Yield | 1.01% | 3.45% | |
| Holdings | 505 | 311 | |
| YTD Return | +12.71% | +1.52% | |
| 1Y Return | +20.53% | +2.92% | |
| 3Y Return (annualized) | +21.60% | - | |
| 5Y Return (annualized) | +12.79% | - | |
| Volatility (annualized) | 15.3% | 1.4% | |
| Max Drawdown | -56.5% | -0.9% | |
| Fund Family | State Street Investment Management | BondBloxx | |
| Category | Equity | Fixed Income | |
| Inception | Jan 22, 1993 | Mar 14, 2024 |
SPY vs TAXX Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and BondBloxx IR+M Tax-Aware Short Duration ETF (TAXX) is a ETF from BondBloxx. Over the past year SPY returned +20.53% while TAXX returned +2.92%. Year to date, SPY is up 12.71% versus a gain of 1.52% for TAXX.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 1.4% for TAXX. 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 -0.9% for TAXX. 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 0.51. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while TAXX charges 0.35%. On a $10,000 position that is $9 vs $35 annually, a gap of $26 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 3.45% for TAXX.
Holdings Overlap
SPY and TAXX share 0 holdings out of 628 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 TAXX?
SPY has an expense ratio of 0.09% while TAXX charges 0.35%. SPY is the cheaper option. On a $10,000 investment, that is $26 per year of difference.
Which performed better, SPY or TAXX?
Over the past year SPY returned +20.53% vs +2.92% for TAXX, so SPY leads on 1-year performance. Over the longest common window we track (2 years), SPY annualized +8.80% vs +3.92% for TAXX. Past performance does not guarantee future results.
Which is riskier, SPY or TAXX?
SPY has been the more volatile fund at 15.3% annualized versus 1.4% for TAXX. Worst drawdown: SPY -56.5% vs TAXX -0.9%.
Should I hold both SPY and TAXX?
SPY and TAXX have a monthly-return correlation of 0.51, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and TAXX?
SPY and TAXX share 0 common holdings with a 0.0% weight overlap. Combined, they hold 628 unique securities.
Which pays a higher dividend, SPY or TAXX?
SPY yields 1.01% while TAXX yields 3.45%, so TAXX currently pays the higher dividend yield.
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