MFSM vs SPY

Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricMFSMSPYWinner
Expense Ratio0.34%0.09%
AUM$100M$789.1B
Dividend Yield3.55%1.01%
Holdings305505
YTD Return+0.64%+13.50%
1Y Return+4.59%+23.56%
3Y Return (annualized)-+21.17%
5Y Return (annualized)-+13.46%
Volatility (annualized)3.7%15.3%
Max Drawdown-3.9%-56.5%
Fund FamilyMFS Investment ManagementState Street Investment Management
CategoryTax PreferredEquity
InceptionDec 5, 2024Jan 22, 1993

MFSM vs SPY Performance

MFS Active Intermediate Muni Bond ETF (MFSM) is a ETF from MFS Investment Management and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year MFSM returned +4.59% while SPY returned +23.56%. Year to date, MFSM is up 0.64% versus a gain of 13.50% for SPY.

Risk: Volatility and Drawdowns

SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 3.7% for MFSM. 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 -3.9% for MFSM 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 0.47. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

MFSM 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, MFSM currently yields 3.55% against 1.01% for SPY.

Holdings Overlap

0.0%overlap

MFSM and SPY share 0 holdings out of 589 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, MFSM or SPY?

MFSM 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, MFSM or SPY?

Over the past year MFSM returned +4.59% vs +23.56% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (2 years), MFSM annualized +2.71% vs +8.85% for SPY. Past performance does not guarantee future results.

Which is riskier, MFSM or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 3.7% for MFSM. Worst drawdown: MFSM -3.9% vs SPY -56.5%.

Should I hold both MFSM and SPY?

MFSM and SPY have a monthly-return correlation of 0.47, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between MFSM and SPY?

MFSM and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 589 unique securities.

Which pays a higher dividend, MFSM or SPY?

MFSM yields 3.55% while SPY yields 1.01%, so MFSM currently pays the higher dividend yield.

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