CGHM vs SPY
CGHM vs SPY
Capital Group Municipal High-Income ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. CGHM offers more diversification with 562 holdings.
Side-by-Side Comparison
| Metric | CGHM | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.34% | 0.09% | |
| AUM | $3.3B | $789.1B | |
| Dividend Yield | 3.54% | 1.01% | |
| Holdings | 3,277 | 505 | |
| YTD Return | +2.36% | +13.79% | |
| 1Y Return | +7.98% | +23.66% | |
| 3Y Return (annualized) | - | +21.40% | |
| 5Y Return (annualized) | - | +13.37% | |
| Volatility (annualized) | 4.5% | 15.3% | |
| Max Drawdown | -5.9% | -56.5% | |
| Fund Family | Capital Group (US) | State Street Investment Management | |
| Category | Tax Preferred | Equity | |
| Inception | Jun 25, 2024 | Jan 22, 1993 |
CGHM vs SPY Performance
Capital Group Municipal High-Income ETF (CGHM) is a ETF from Capital Group (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year CGHM returned +7.98% while SPY returned +23.66%. Year to date, CGHM is up 2.36% versus a gain of 13.79% for SPY.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 4.5% for CGHM. 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 -5.9% for CGHM and -56.5% for SPY. 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
CGHM charges 0.34% per year while SPY charges 0.09%. On a $10,000 position that is $34 vs $9 annually, a gap of $25 per year that compounds over a long holding period. On income, CGHM currently yields 3.54% against 1.01% for SPY.
Holdings Overlap
CGHM and SPY share 0 holdings out of 1065 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, CGHM or SPY?
CGHM has an expense ratio of 0.34% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $25 per year of difference.
Which performed better, CGHM or SPY?
Over the past year CGHM returned +7.98% vs +23.66% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (2 years), CGHM annualized +4.56% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, CGHM or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 4.5% for CGHM. Worst drawdown: CGHM -5.9% vs SPY -56.5%.
Should I hold both CGHM and SPY?
CGHM and SPY 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 CGHM and SPY?
CGHM and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1065 unique securities.
Which pays a higher dividend, CGHM or SPY?
CGHM yields 3.54% while SPY yields 1.01%, so CGHM currently pays the higher dividend yield.
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