PMO vs SPY
PMO vs SPY
Putnam Municipal Opportunities Trust 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 | PMO | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 1.02% | 0.09% | |
| AUM | $4,829 | $789.1B | |
| Dividend Yield | 4.04% | 1.01% | |
| Holdings | 288 | 505 | |
| YTD Return | +0.30% | +13.79% | |
| 1Y Return | +10.75% | +23.66% | |
| 3Y Return (annualized) | +5.92% | +21.40% | |
| 5Y Return (annualized) | -1.95% | +13.37% | |
| Volatility (annualized) | 11.5% | 15.3% | |
| Max Drawdown | -50.4% | -56.5% | |
| Fund Family | Putnam Investments | State Street Investment Management | |
| Category | Tax Preferred | Equity | |
| Inception | May 28, 1993 | Jan 22, 1993 |
PMO vs SPY Performance
Putnam Municipal Opportunities Trust (PMO) is a ETF from Putnam Investments and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year PMO returned +10.75% while SPY returned +23.66%. Year to date, PMO is up 0.30% versus a gain of 13.79% for SPY.
Over three years, PMO compounded at +5.92% per year against +21.40% for SPY; over five years the annualized figures are -1.95% and +13.37% respectively. Across the full 31-year window we track, SPY has the edge at +8.85% annualized vs -0.05%. 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 11.5% for PMO. 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 -50.4% for PMO 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 0.29. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PMO charges 1.02% per year while SPY charges 0.09%. On a $10,000 position that is $102 vs $9 annually, a gap of $93 per year that compounds over a long holding period. On income, PMO currently yields 4.04% against 1.01% for SPY.
Holdings Overlap
PMO and SPY share 0 holdings out of 613 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, PMO or SPY?
PMO has an expense ratio of 1.02% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $93 per year of difference.
Which performed better, PMO or SPY?
Over the past year PMO returned +10.75% vs +23.66% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (31 years), PMO annualized -0.05% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, PMO or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 11.5% for PMO. Worst drawdown: PMO -50.4% vs SPY -56.5%.
Should I hold both PMO and SPY?
PMO and SPY have a monthly-return correlation of 0.29, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PMO and SPY?
PMO and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 613 unique securities.
Which pays a higher dividend, PMO or SPY?
PMO yields 4.04% while SPY yields 1.01%, so PMO currently pays the higher dividend yield.
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