MUSI 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

MetricMUSISPYWinner
Expense Ratio0.38%0.09%
AUM$244M$789.1B
Dividend Yield5.51%1.01%
Holdings374505
YTD Return+0.84%+13.28%
1Y Return+3.70%+23.94%
3Y Return (annualized)+6.24%+21.07%
5Y Return (annualized)+2.04%+13.27%
Volatility (annualized)5.4%15.3%
Max Drawdown-13.9%-56.5%
Fund FamilyAmerican Century InvestmentsState Street Investment Management
CategoryFixed IncomeEquity
InceptionJun 29, 2021Jan 22, 1993

MUSI vs SPY Performance

American Century Multisector Income ETF (MUSI) is a ETF from American Century Investments and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year MUSI returned +3.70% while SPY returned +23.94%. Year to date, MUSI is up 0.84% versus a gain of 13.28% for SPY.

Over three years, MUSI compounded at +6.24% per year against +21.07% for SPY; over five years the annualized figures are +2.04% and +13.27% respectively. Across the full 5-year window we track, SPY has the edge at +8.84% annualized vs +2.03%. 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 5.4% for MUSI. 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 -13.9% for MUSI 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

MUSI charges 0.38% per year while SPY charges 0.09%. On a $10,000 position that is $38 vs $9 annually, a gap of $29 per year that compounds over a long holding period. On income, MUSI currently yields 5.51% against 1.01% for SPY.

Holdings Overlap

0.4%overlap

MUSI and SPY share 1 holdings out of 652 unique holdings combined, representing a 0.4% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in MUSIWeight in SPYDifference
C0.44%0.38%0.06%

Frequently Asked Questions

Which is cheaper, MUSI or SPY?

MUSI has an expense ratio of 0.38% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $29 per year of difference.

Which performed better, MUSI or SPY?

Over the past year MUSI returned +3.70% vs +23.94% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (5 years), MUSI annualized +2.03% vs +8.84% for SPY. Past performance does not guarantee future results.

Which is riskier, MUSI or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 5.4% for MUSI. Worst drawdown: MUSI -13.9% vs SPY -56.5%.

Should I hold both MUSI and SPY?

MUSI and SPY have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between MUSI and SPY?

MUSI and SPY share 1 common holdings with a 0.4% weight overlap. Combined, they hold 652 unique securities.

Which pays a higher dividend, MUSI or SPY?

MUSI yields 5.51% while SPY yields 1.01%, so MUSI currently pays the higher dividend yield.

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