SPY vs TAXM
SPY vs TAXM
State Street SPDR S&P 500 ETF Trust vs BondBloxx IR+M Tax-Aware ETF for Massachusetts Residents
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 | SPY | TAXM | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.35% | |
| AUM | $789.1B | $39M | |
| Dividend Yield | 1.01% | 3.31% | |
| Holdings | 505 | 143 | |
| YTD Return | +13.50% | +0.21% | |
| 1Y Return | +23.56% | +4.13% | |
| 3Y Return (annualized) | +21.17% | - | |
| 5Y Return (annualized) | +13.46% | - | |
| Volatility (annualized) | 15.3% | 3.6% | |
| Max Drawdown | -56.5% | -3.1% | |
| Fund Family | State Street Investment Management | BondBloxx | |
| Category | Equity | Tax Preferred | |
| Inception | Jan 22, 1993 | Mar 13, 2025 |
SPY vs TAXM Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and BondBloxx IR+M Tax-Aware ETF for Massachusetts Residents (TAXM) is a ETF from BondBloxx. Over the past year SPY returned +23.56% while TAXM returned +4.13%. Year to date, SPY is up 13.50% versus a gain of 0.21% for TAXM.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 3.6% for TAXM. 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 -3.1% for TAXM. 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 0.44. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while TAXM charges 0.35%. On a $10,000 position that is $9 vs $35 annually, a gap of $26 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 3.31% for TAXM.
Holdings Overlap
SPY and TAXM share 0 holdings out of 573 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 TAXM?
SPY has an expense ratio of 0.09% while TAXM charges 0.35%. SPY is the cheaper option. On a $10,000 investment, that is $26 per year of difference.
Which performed better, SPY or TAXM?
Over the past year SPY returned +23.56% vs +4.13% for TAXM, so SPY leads on 1-year performance. Over the longest common window we track (1 years), SPY annualized +8.85% vs +2.82% for TAXM. Past performance does not guarantee future results.
Which is riskier, SPY or TAXM?
SPY has been the more volatile fund at 15.3% annualized versus 3.6% for TAXM. Worst drawdown: SPY -56.5% vs TAXM -3.1%.
Should I hold both SPY and TAXM?
SPY and TAXM have a monthly-return correlation of 0.44, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and TAXM?
SPY and TAXM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 573 unique securities.
Which pays a higher dividend, SPY or TAXM?
SPY yields 1.01% while TAXM yields 3.31%, so TAXM currently pays the higher dividend yield.
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