MUSE 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

MetricMUSESPYWinner
Expense Ratio0.56%0.09%
AUM$40M$789.1B
Dividend Yield7.67%1.01%
Holdings260505
YTD Return+2.23%+13.50%
1Y Return+5.06%+23.56%
3Y Return (annualized)-+21.17%
5Y Return (annualized)-+13.46%
Volatility (annualized)2.9%15.3%
Max Drawdown-3.6%-56.5%
Fund FamilyTCW ETFsState Street Investment Management
CategoryFixed IncomeEquity
InceptionNov 15, 2024Jan 22, 1993

MUSE vs SPY Performance

TCW Multisector Credit Income ETF (MUSE) is a ETF from TCW ETFs and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year MUSE returned +5.06% while SPY returned +23.56%. Year to date, MUSE is up 2.23% 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 2.9% for MUSE. 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 -3.6% for MUSE 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 0.83. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

MUSE charges 0.56% per year while SPY charges 0.09%. On a $10,000 position that is $56 vs $9 annually, a gap of $47 per year that compounds over a long holding period. On income, MUSE currently yields 7.67% against 1.01% for SPY.

Holdings Overlap

0.0%overlap

MUSE and SPY share 1 holdings out of 646 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in MUSEWeight in SPYDifference
CNP0.64%0.04%0.60%

Frequently Asked Questions

Which is cheaper, MUSE or SPY?

MUSE has an expense ratio of 0.56% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $47 per year of difference.

Which performed better, MUSE or SPY?

Over the past year MUSE returned +5.06% vs +23.56% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (2 years), MUSE annualized +6.35% vs +8.85% for SPY. Past performance does not guarantee future results.

Which is riskier, MUSE or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 2.9% for MUSE. Worst drawdown: MUSE -3.6% vs SPY -56.5%.

Should I hold both MUSE and SPY?

MUSE and SPY have a monthly-return correlation of 0.83, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between MUSE and SPY?

MUSE and SPY share 1 common holdings with a 0.0% weight overlap. Combined, they hold 646 unique securities.

Which pays a higher dividend, MUSE or SPY?

MUSE yields 7.67% while SPY yields 1.01%, so MUSE currently pays the higher dividend yield.

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