MMT vs SPY

Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. MMT offers more diversification with 547 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: MMT

Side-by-Side Comparison

MetricMMTSPYWinner
Expense Ratio1.17%0.09%
AUM$266M$789.1B
Dividend Yield8.21%1.01%
Holdings920505
YTD Return-2.09%+9.93%
1Y Return+1.48%+19.50%
3Y Return (annualized)+7.20%+19.33%
5Y Return (annualized)+1.36%+12.82%
Volatility (annualized)10.8%15.3%
Max Drawdown-47.7%-56.5%
Fund FamilyMFS Investment ManagementState Street Investment Management
CategoryFixed IncomeEquity
InceptionMar 12, 1987Jan 22, 1993

MMT vs SPY Performance

MFS Multimarket Income Trust (MMT) 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 MMT returned +1.48% while SPY returned +19.50%. Year to date, MMT is down 2.09% versus a gain of 9.93% for SPY.

Over three years, MMT compounded at +7.20% per year against +19.33% for SPY; over five years the annualized figures are +1.36% and +12.82% respectively. Across the full 31-year window we track, SPY has the edge at +8.74% annualized vs +0.23%. 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 10.8% for MMT. 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 -47.7% for MMT 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

MMT charges 1.17% per year while SPY charges 0.09%. On a $10,000 position that is $117 vs $9 annually, a gap of $108 per year that compounds over a long holding period. On income, MMT currently yields 8.21% against 1.01% for SPY.

Holdings Overlap

0.0%overlap

MMT and SPY share 0 holdings out of 1050 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, MMT or SPY?

MMT has an expense ratio of 1.17% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $108 per year of difference.

Which performed better, MMT or SPY?

Over the past year MMT returned +1.48% vs +19.50% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (31 years), MMT annualized +0.23% vs +8.74% for SPY. Past performance does not guarantee future results.

Which is riskier, MMT or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 10.8% for MMT. Worst drawdown: MMT -47.7% vs SPY -56.5%.

Should I hold both MMT and SPY?

MMT 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 MMT and SPY?

MMT and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1050 unique securities.

Which pays a higher dividend, MMT or SPY?

MMT yields 8.21% while SPY yields 1.01%, so MMT currently pays the higher dividend yield.

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