MBND vs. SPY

Last updated Jun 4, 2026

MBND (SPDR Nuveen Municipal Bond ETF) and SPY (State Street SPDR S&P 500 ETF) are both exchange-traded funds - MBND is a Municipal Bonds fund actively managed by State Street, while SPY is a S&P 500 fund tracking the S&P 500 Index. MBND is actively managed, while SPY is passively managed. Over the past 5 years, MBND returned 0.63%/yr vs 13.83%/yr for SPY. At a 0.13 correlation, their price movements are largely independent. MBND charges 0.40%/yr vs 0.09%/yr for SPY.

Performance

MBND vs. SPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SPDR Nuveen Municipal Bond ETF (MBND) and State Street SPDR S&P 500 ETF (SPY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MBND achieves a 1.12% return, which is significantly lower than SPY's 10.91% return.

MBND

• 1D: 0.00%
• 1M: 0.58%
• YTD: 1.12%
• 6M: 1.54%
• 1Y: 5.33%
• 3Y*: 3.72%
• 5Y*: 0.63%
• 10Y*: —

SPY

• 1D: -0.70%
• 1M: 5.05%
• YTD: 10.91%
• 6M: 10.91%
• 1Y: 27.98%
• 3Y*: 22.35%
• 5Y*: 13.83%
• 10Y*: 15.49%

*Multi-year figures are annualized to reflect compound growth (CAGR)

MBND vs. SPY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
MBND SPDR Nuveen Municipal Bond ETF	1.12%	2.90%	2.75%	5.62%	-8.61%	0.59%
SPY State Street SPDR S&P 500 ETF	10.91%	17.72%	24.89%	26.18%	-18.18%	24.63%

Correlation

The correlation between MBND and SPY is 0.16, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.16
Correlation (3Y) Calculated over the trailing 3-year period	0.16
Correlation (5Y) Calculated over the trailing 5-year period	0.13
Correlation (All Time) Calculated using the full available price history since Feb 5, 2021	0.13

Return for Risk

MBND vs. SPY — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

MBND

MBND Risk / Return Rank: 60
MBND Sharpe Ratio Rank: 65
MBND Sortino Ratio Rank: 67
MBND Omega Ratio Rank: 77
MBND Calmar Ratio Rank: 45
MBND Martin Ratio Rank: 45

SPY

SPY Risk / Return Rank: 70
SPY Sharpe Ratio Rank: 71
SPY Sortino Ratio Rank: 69
SPY Omega Ratio Rank: 70
SPY Calmar Ratio Rank: 62
SPY Martin Ratio Rank: 75

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

MBND vs. SPY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR Nuveen Municipal Bond ETF (MBND) and State Street SPDR S&P 500 ETF (SPY). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	MBND	SPY	Difference
Sharpe ratio Return per unit of total volatility	2.14	2.38	-0.24
Sortino ratio Return per unit of downside risk	3.07	3.24	-0.17
Omega ratio Gain probability vs. loss probability	1.45	1.43	+0.02
Calmar ratio Return relative to maximum drawdown	2.19	3.16	-0.97
Martin ratio Return relative to average drawdown	7.27	14.72	-7.44
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

MBND vs. SPY - Sharpe Ratio Comparison

The current MBND Sharpe Ratio is 2.14, which is comparable to the SPY Sharpe Ratio of 2.38. The chart below compares the historical Sharpe Ratios of MBND and SPY, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	MBND	SPY	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.14	2.38	-0.24
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.18	0.82	-0.63
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.87	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.21	0.59	-0.38

Drawdowns

MBND vs. SPY - Drawdown Comparison

The maximum MBND drawdown since its inception was -13.18%, smaller than the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for MBND and SPY.

Drawdown Indicators

	MBND	SPY	Difference
Max Drawdown Largest peak-to-trough decline	-13.18%	-55.19%	+42.01%
Max Drawdown (1Y) Largest decline over 1 year	-2.44%	-8.88%	+6.44%
Max Drawdown (3Y) Largest decline over 3 years	-4.57%	-18.76%	+14.19%
Max Drawdown (5Y) Largest decline over 5 years	-13.18%	-24.50%	+11.32%
Max Drawdown (10Y) Largest decline over 10 years	—	-33.72%	—
Current Drawdown Current decline from peak	-0.62%	-0.70%	+0.08%
Average Drawdown Average peak-to-trough decline	-4.19%	-9.05%	+4.86%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.73%	1.91%	-1.18%

Volatility

MBND vs. SPY - Volatility Comparison

The current volatility for SPDR Nuveen Municipal Bond ETF (MBND) is 1.05%, while State Street SPDR S&P 500 ETF (SPY) has a volatility of 2.84%. This indicates that MBND experiences smaller price fluctuations and is considered to be less risky than SPY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MBND	SPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.05%	2.84%	-1.79%
Volatility (6M) Calculated over the trailing 6-month period	1.82%	8.90%	-7.08%
Volatility (1Y) Calculated over the trailing 1-year period	2.50%	11.83%	-9.33%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.48%	17.05%	-13.57%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.41%	17.94%	-14.53%

MBND vs. SPY - Expense Ratio Comparison

MBND has a 0.40% expense ratio, which is higher than SPY's 0.09% expense ratio.

Dividends

MBND vs. SPY - Dividend Comparison

MBND's dividend yield for the trailing twelve months is around 3.49%, more than SPY's 0.98% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MBND SPDR Nuveen Municipal Bond ETF	3.49%	3.43%	2.72%	2.53%	1.61%	1.62%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
SPY State Street SPDR S&P 500 ETF	0.98%	1.07%	1.21%	1.40%	1.65%	1.20%	1.52%	1.75%	2.04%	1.80%	2.03%	2.06%

Frequently Asked Questions

Can I hold both MBND and SPY in my portfolio?

MBND and SPY have a correlation of 0.16, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MBND or SPY?

SPY has higher volatility (2.84%) compared to MBND (1.05%). In terms of maximum drawdown, MBND dropped -13.18% vs SPY's -55.19%.

Which ETF is better, MBND or SPY?

On 5-year performance, SPY leads with 13.83% vs 0.63% for MBND. On fees, SPY is cheaper at 0.09% per year. On volatility, MBND has been the lower-risk option at 1.05%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MBND or SPY?

Over the 5-year period, SPY has performed better with a 13.83% return vs 0.63%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MBND or SPY?

SPY is cheaper with a 0.09% expense ratio, compared with 0.40% for MBND.

Which ETF pays a higher dividend yield, MBND or SPY?

MBND has the higher dividend yield at 3.49%, compared with 0.98% for SPY.

What is the main difference between MBND and SPY?

MBND is categorized as Municipal Bonds, while SPY is S&P 500. Their fees differ too: 0.40% for MBND and 0.09% for SPY.

Which has better risk-adjusted returns?

SPY currently has the higher Sharpe Ratio (2.38 vs 2.14), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.