SHM vs SPY
SHM vs SPY
State Street SPDR Nuveen ICE Short Term Municipal Bond ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SHM offers more diversification with 671 holdings.
Side-by-Side Comparison
| Metric | SHM | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.20% | 0.09% | |
| AUM | $3.5B | $789.1B | |
| Dividend Yield | 2.66% | 1.01% | |
| Holdings | 988 | 505 | |
| YTD Return | +0.54% | +13.50% | |
| 1Y Return | +1.58% | +23.56% | |
| 3Y Return (annualized) | +2.75% | +21.17% | |
| 5Y Return (annualized) | +0.76% | +13.46% | |
| Volatility (annualized) | 2.6% | 15.3% | |
| Max Drawdown | -11.6% | -56.5% | |
| Fund Family | State Street Investment Management | State Street Investment Management | |
| Category | Tax Preferred | Equity | |
| Inception | Oct 10, 2007 | Jan 22, 1993 |
SHM vs SPY Performance
State Street SPDR Nuveen ICE Short Term Municipal Bond ETF (SHM) is a ETF from State Street Investment Management and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year SHM returned +1.58% while SPY returned +23.56%. Year to date, SHM is up 0.54% versus a gain of 13.50% for SPY.
Over three years, SHM compounded at +2.75% per year against +21.17% for SPY; over five years the annualized figures are +0.76% and +13.46% respectively. Across the full 19-year window we track, SPY has the edge at +8.85% annualized vs +0.76%. 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 2.6% for SHM. 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 -11.6% for SHM 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 0.21. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SHM charges 0.20% per year while SPY charges 0.09%. On a $10,000 position that is $20 vs $9 annually, a gap of $11 per year that compounds over a long holding period. On income, SHM currently yields 2.66% against 1.01% for SPY.
Holdings Overlap
SHM and SPY share 0 holdings out of 1174 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, SHM or SPY?
SHM has an expense ratio of 0.20% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $11 per year of difference.
Which performed better, SHM or SPY?
Over the past year SHM returned +1.58% vs +23.56% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (19 years), SHM annualized +0.76% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, SHM or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 2.6% for SHM. Worst drawdown: SHM -11.6% vs SPY -56.5%.
Should I hold both SHM and SPY?
SHM and SPY have a monthly-return correlation of 0.21, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SHM and SPY?
SHM and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1174 unique securities.
Which pays a higher dividend, SHM or SPY?
SHM yields 2.66% while SPY yields 1.01%, so SHM currently pays the higher dividend yield.
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