MSTI vs SPY
MSTI vs SPY
Madison Short-Term Strategic 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. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | MSTI | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.36% | 0.09% | |
| AUM | $49M | $789.1B | |
| Dividend Yield | 5.33% | 1.01% | |
| Holdings | 99 | 505 | |
| YTD Return | +0.60% | +9.93% | |
| 1Y Return | +3.20% | +19.50% | |
| 3Y Return (annualized) | +5.78% | +19.33% | |
| 5Y Return (annualized) | - | +12.82% | |
| Volatility (annualized) | 2.5% | 15.3% | |
| Max Drawdown | -1.5% | -56.5% | |
| Fund Family | Madison Funds | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Sep 5, 2023 | Jan 22, 1993 |
MSTI vs SPY Performance
Madison Short-Term Strategic Income ETF (MSTI) 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 MSTI returned +3.20% while SPY returned +19.50%. Year to date, MSTI is up 0.60% versus a gain of 9.93% for SPY.
Over three years, MSTI compounded at +5.78% per year against +19.33% for SPY. Across the full 3-year window we track, SPY has the edge at +8.74% annualized vs +5.78%. 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 2.5% for MSTI. 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 -1.5% for MSTI 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
MSTI 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, MSTI currently yields 5.33% against 1.01% for SPY.
Holdings Overlap
MSTI and SPY share 0 holdings out of 559 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, MSTI or SPY?
MSTI 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, MSTI or SPY?
Over the past year MSTI returned +3.20% vs +19.50% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (3 years), MSTI annualized +5.78% vs +8.74% for SPY. Past performance does not guarantee future results.
Which is riskier, MSTI or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 2.5% for MSTI. Worst drawdown: MSTI -1.5% vs SPY -56.5%.
Should I hold both MSTI and SPY?
MSTI 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 MSTI and SPY?
MSTI and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 559 unique securities.
Which pays a higher dividend, MSTI or SPY?
MSTI yields 5.33% while SPY yields 1.01%, so MSTI currently pays the higher dividend yield.
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