MAGG vs SPY
MAGG vs SPY
Madison Aggregate Bond ETF vs State Street SPDR S&P 500 ETF Trust
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 | MAGG | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.36% | 0.09% | |
| AUM | $66M | $789.1B | |
| Dividend Yield | 4.75% | 1.01% | |
| Holdings | 219 | 505 | |
| YTD Return | -0.07% | +13.28% | |
| 1Y Return | +2.46% | +23.94% | |
| 3Y Return (annualized) | +4.54% | +21.07% | |
| 5Y Return (annualized) | - | +13.27% | |
| Volatility (annualized) | 5.2% | 15.3% | |
| Max Drawdown | -4.6% | -56.5% | |
| Fund Family | Madison Funds | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Aug 28, 2023 | Jan 22, 1993 |
MAGG vs SPY Performance
Madison Aggregate Bond ETF (MAGG) is a ETF from Madison Funds and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year MAGG returned +2.46% while SPY returned +23.94%. Year to date, MAGG is down 0.07% versus a gain of 13.28% for SPY.
Over three years, MAGG compounded at +4.54% per year against +21.07% for SPY. Across the full 3-year window we track, SPY has the edge at +8.84% annualized vs +4.54%. 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 5.2% for MAGG. 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 -4.6% for MAGG 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 0.52. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MAGG charges 0.36% per year while SPY charges 0.09%. On a $10,000 position that is $36 vs $9 annually, a gap of $27 per year that compounds over a long holding period. On income, MAGG currently yields 4.75% against 1.01% for SPY.
Holdings Overlap
MAGG and SPY share 0 holdings out of 648 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, MAGG or SPY?
MAGG has an expense ratio of 0.36% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $27 per year of difference.
Which performed better, MAGG or SPY?
Over the past year MAGG returned +2.46% vs +23.94% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (3 years), MAGG annualized +4.54% vs +8.84% for SPY. Past performance does not guarantee future results.
Which is riskier, MAGG or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 5.2% for MAGG. Worst drawdown: MAGG -4.6% vs SPY -56.5%.
Should I hold both MAGG and SPY?
MAGG and SPY have a monthly-return correlation of 0.52, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MAGG and SPY?
MAGG and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 648 unique securities.
Which pays a higher dividend, MAGG or SPY?
MAGG yields 4.75% while SPY yields 1.01%, so MAGG currently pays the higher dividend yield.
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