SPMB vs SPY
SPMB vs SPY
State Street SPDR Portfolio Mortgage Backed Bond ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPMB has a lower expense ratio. SPY delivered stronger 1-year returns. SPMB offers more diversification with 2556 holdings.
Side-by-Side Comparison
| Metric | SPMB | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.09% | |
| AUM | $7.0B | $789.1B | |
| Dividend Yield | 4.05% | 1.01% | |
| Holdings | 2,661 | 505 | |
| YTD Return | -0.24% | +9.93% | |
| 1Y Return | +4.10% | +19.50% | |
| 3Y Return (annualized) | +4.32% | +19.33% | |
| 5Y Return (annualized) | -0.01% | +12.82% | |
| Volatility (annualized) | 4.5% | 15.3% | |
| Max Drawdown | -22.8% | -56.5% | |
| Fund Family | State Street Investment Management | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Jan 15, 2009 | Jan 22, 1993 |
SPMB vs SPY Performance
State Street SPDR Portfolio Mortgage Backed Bond ETF (SPMB) 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 SPMB returned +4.10% while SPY returned +19.50%. Year to date, SPMB is down 0.24% versus a gain of 9.93% for SPY.
Over three years, SPMB compounded at +4.32% per year against +19.33% for SPY; over five years the annualized figures are -0.01% and +12.82% respectively. Across the full 18-year window we track, SPY has the edge at +8.74% annualized vs +0.08%. 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 4.5% for SPMB. 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 -22.8% for SPMB 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 0.24. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPMB charges 0.04% per year while SPY charges 0.09%. On a $10,000 position that is $4 vs $9 annually, a gap of $5 per year that compounds over a long holding period. On income, SPMB currently yields 4.05% against 1.01% for SPY.
Holdings Overlap
SPMB and SPY share 0 holdings out of 3059 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, SPMB or SPY?
SPMB has an expense ratio of 0.04% while SPY charges 0.09%. SPMB is the cheaper option. On a $10,000 investment, that is $5 per year of difference.
Which performed better, SPMB or SPY?
Over the past year SPMB returned +4.10% vs +19.50% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (18 years), SPMB annualized +0.08% vs +8.74% for SPY. Past performance does not guarantee future results.
Which is riskier, SPMB or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 4.5% for SPMB. Worst drawdown: SPMB -22.8% vs SPY -56.5%.
Should I hold both SPMB and SPY?
SPMB and SPY have a monthly-return correlation of 0.24, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPMB and SPY?
SPMB and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 3059 unique securities.
Which pays a higher dividend, SPMB or SPY?
SPMB yields 4.05% while SPY yields 1.01%, so SPMB currently pays the higher dividend yield.
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