SPY vs TFI
State Street SPDR S&P 500 ETF Trust vs State Street SPDR Nuveen ICE Municipal Bond ETF
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. TFI offers more diversification with 1,809 holdings.
Side-by-Side Comparison
| Metric | SPY | TFI | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.23% | |
| AUM | $789.1B | $3.1B | |
| Dividend Yield | 1.01% | 3.46% | |
| Holdings | 505 | 1,809 | |
| YTD Return | +14.47% | +0.44% | |
| 1Y Return | +21.96% | +4.43% | |
| 3Y Return (annualized) | +21.70% | +2.64% | |
| 5Y Return (annualized) | +13.30% | -0.30% | |
| Volatility (annualized) | 15.3% | 5.8% | |
| Max Drawdown | -56.5% | -17.1% | |
| Fund Family | State Street Investment Management | State Street Investment Management | |
| Category | Equity | Tax Preferred | |
| Inception | Jan 22, 1993 | Sep 11, 2007 |
SPY vs TFI Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and State Street SPDR Nuveen ICE Municipal Bond ETF (TFI) is a ETF from State Street Investment Management. Over the past year SPY returned +21.96% while TFI returned +4.43%. Year to date, SPY is up 14.47% versus a gain of 0.44% for TFI.
Over three years, SPY compounded at +21.70% per year against +2.64% for TFI; over five years the annualized figures are +13.30% and -0.30% respectively. Across the full 19-year window we track, SPY has the edge at +8.87% annualized vs +0.82%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 5.8% for TFI. 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 -17.1% for TFI. 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 0.26. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while TFI charges 0.23%. On a $10,000 position that is $9 vs $23 annually, a gap of $14 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 3.46% for TFI.
Holdings Overlap
SPY and TFI share 0 holdings out of 510 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 TFI?
SPY has an expense ratio of 0.09% while TFI charges 0.23%. SPY is the cheaper option. On a $10,000 investment, that is $14 per year of difference.
Which performed better, SPY or TFI?
Over the past year SPY returned +21.96% vs +4.43% for TFI, so SPY leads on 1-year performance. Over the longest common window we track (19 years), SPY annualized +8.87% vs +0.82% for TFI. Past performance does not guarantee future results.
Which is riskier, SPY or TFI?
SPY has been the more volatile fund at 15.3% annualized versus 5.8% for TFI. Worst drawdown: SPY -56.5% vs TFI -17.1%.
Should I hold both SPY and TFI?
SPY and TFI have a monthly-return correlation of 0.26, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and TFI?
SPY and TFI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 510 unique securities.
Which pays a higher dividend, SPY or TFI?
SPY yields 1.01% while TFI yields 3.46%, so TFI currently pays the higher dividend yield.
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