MMU vs SPY
MMU vs SPY
Western Asset Managed Municipals Fund Inc. 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 | MMU | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 1.34% | 0.09% | |
| AUM | $587M | $789.1B | |
| Dividend Yield | 5.92% | 1.01% | |
| Holdings | 427 | 505 | |
| YTD Return | -0.50% | +11.49% | |
| 1Y Return | +7.64% | +21.37% | |
| 3Y Return (annualized) | +7.24% | +20.76% | |
| 5Y Return (annualized) | -0.74% | +12.94% | |
| Volatility (annualized) | 11.1% | 15.3% | |
| Max Drawdown | -41.0% | -56.5% | |
| Fund Family | Franklin Templeton Investments (US) | State Street Investment Management | |
| Category | Tax Preferred | Equity | |
| Inception | Jun 26, 1992 | Jan 22, 1993 |
MMU vs SPY Performance
Western Asset Managed Municipals Fund Inc. (MMU) is a ETF from Franklin Templeton Investments (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year MMU returned +7.64% while SPY returned +21.37%. Year to date, MMU is down 0.50% versus a gain of 11.49% for SPY.
Over three years, MMU compounded at +7.24% per year against +20.76% for SPY; over five years the annualized figures are -0.74% and +12.94% respectively. Across the full 31-year window we track, SPY has the edge at +8.78% annualized vs +0.28%. 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 11.1% for MMU. 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 -41.0% for MMU 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 0.23. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MMU charges 1.34% per year while SPY charges 0.09%. On a $10,000 position that is $134 vs $9 annually, a gap of $125 per year that compounds over a long holding period. On income, MMU currently yields 5.92% against 1.01% for SPY.
Holdings Overlap
MMU and SPY share 0 holdings out of 724 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, MMU or SPY?
MMU has an expense ratio of 1.34% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $125 per year of difference.
Which performed better, MMU or SPY?
Over the past year MMU returned +7.64% vs +21.37% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (31 years), MMU annualized +0.28% vs +8.78% for SPY. Past performance does not guarantee future results.
Which is riskier, MMU or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 11.1% for MMU. Worst drawdown: MMU -41.0% vs SPY -56.5%.
Should I hold both MMU and SPY?
MMU and SPY have a monthly-return correlation of 0.23, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MMU and SPY?
MMU and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 724 unique securities.
Which pays a higher dividend, MMU or SPY?
MMU yields 5.92% while SPY yields 1.01%, so MMU currently pays the higher dividend yield.
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