SPY vs TAXE

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

MetricSPYTAXEWinner
Expense Ratio0.09%0.24%
AUM$789.1B$192M
Dividend Yield1.01%3.58%
Holdings505347
YTD Return+11.49%+0.65%
1Y Return+21.37%+4.81%
3Y Return (annualized)+20.76%-
5Y Return (annualized)+12.94%-
Volatility (annualized)15.3%3.5%
Max Drawdown-56.5%-3.7%
Fund FamilyState Street Investment ManagementT.Rowe Price
CategoryEquityFixed Income
InceptionJan 22, 1993Jul 10, 2024

SPY vs TAXE Performance

State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and T. Rowe Price Intermediate Municipal Income ETF (TAXE) is a ETF from T.Rowe Price. Over the past year SPY returned +21.37% while TAXE returned +4.81%. Year to date, SPY is up 11.49% versus a gain of 0.65% for TAXE.

Risk: Volatility and Drawdowns

SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 3.5% for TAXE. 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 -56.5% for SPY and -3.7% for TAXE. 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 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SPY charges 0.09% per year while TAXE charges 0.24%. On a $10,000 position that is $9 vs $24 annually, a gap of $15 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 3.58% for TAXE.

Holdings Overlap

0.0%overlap

SPY and TAXE share 0 holdings out of 674 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, SPY or TAXE?

SPY has an expense ratio of 0.09% while TAXE charges 0.24%. SPY is the cheaper option. On a $10,000 investment, that is $15 per year of difference.

Which performed better, SPY or TAXE?

Over the past year SPY returned +21.37% vs +4.81% for TAXE, so SPY leads on 1-year performance. Over the longest common window we track (2 years), SPY annualized +8.78% vs +3.93% for TAXE. Past performance does not guarantee future results.

Which is riskier, SPY or TAXE?

SPY has been the more volatile fund at 15.3% annualized versus 3.5% for TAXE. Worst drawdown: SPY -56.5% vs TAXE -3.7%.

Should I hold both SPY and TAXE?

SPY and TAXE have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SPY and TAXE?

SPY and TAXE share 0 common holdings with a 0.0% weight overlap. Combined, they hold 674 unique securities.

Which pays a higher dividend, SPY or TAXE?

SPY yields 1.01% while TAXE yields 3.58%, so TAXE currently pays the higher dividend yield.

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