SPY vs TMB
SPY vs TMB
State Street SPDR S&P 500 ETF Trust vs Thornburg Multi Sector Bond ETF
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | SPY | TMB | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.55% | |
| AUM | $789.1B | $238M | |
| Dividend Yield | 1.01% | 4.60% | |
| Holdings | 505 | 403 | |
| YTD Return | +13.79% | +0.96% | |
| 1Y Return | +23.66% | +3.21% | |
| 3Y Return (annualized) | +21.40% | - | |
| 5Y Return (annualized) | +13.37% | - | |
| Volatility (annualized) | 15.3% | 2.0% | |
| Max Drawdown | -56.5% | -2.0% | |
| Fund Family | State Street Investment Management | Thornburg Investment Management | |
| Category | Equity | Fixed Income | |
| Inception | Jan 22, 1993 | Feb 5, 2025 |
SPY vs TMB Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Thornburg Multi Sector Bond ETF (TMB) is a ETF from Thornburg Investment Management. Over the past year SPY returned +23.66% while TMB returned +3.21%. Year to date, SPY is up 13.79% versus a gain of 0.96% for TMB.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 2.0% for TMB. 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 -2.0% for TMB. 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 TMB charges 0.55%. On a $10,000 position that is $9 vs $55 annually, a gap of $46 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 4.60% for TMB.
Holdings Overlap
SPY and TMB share 0 holdings out of 758 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 TMB?
SPY has an expense ratio of 0.09% while TMB charges 0.55%. SPY is the cheaper option. On a $10,000 investment, that is $46 per year of difference.
Which performed better, SPY or TMB?
Over the past year SPY returned +23.66% vs +3.21% for TMB, so SPY leads on 1-year performance. Over the longest common window we track (2 years), SPY annualized +8.85% vs +5.05% for TMB. Past performance does not guarantee future results.
Which is riskier, SPY or TMB?
SPY has been the more volatile fund at 15.3% annualized versus 2.0% for TMB. Worst drawdown: SPY -56.5% vs TMB -2.0%.
Should I hold both SPY and TMB?
SPY and TMB 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 TMB?
SPY and TMB share 0 common holdings with a 0.0% weight overlap. Combined, they hold 758 unique securities.
Which pays a higher dividend, SPY or TMB?
SPY yields 1.01% while TMB yields 4.60%, so TMB currently pays the higher dividend yield.
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