TAFM vs. SPY

Last updated Jun 23, 2026

TAFM (AB Tax-Aware Intermediate Municipal ETF) and SPY (State Street SPDR S&P 500 ETF) are both exchange-traded funds - TAFM is a Municipal Bonds fund actively managed by AllianceBernstein, while SPY is a S&P 500 fund tracking the S&P 500 Index. TAFM is actively managed, while SPY is passively managed. Over the past year, TAFM returned 6.95% vs 26.65% for SPY. At a 0.15 correlation, their price movements are largely independent. TAFM charges 0.28%/yr vs 0.09%/yr for SPY.

Performance

TAFM vs. SPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in AB Tax-Aware Intermediate Municipal ETF (TAFM) 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, TAFM achieves a 2.19% return, which is significantly lower than SPY's 9.74% return.

TAFM

• 1D: 0.08%
• 1M: 1.52%
• YTD: 2.19%
• 6M: 2.26%
• 1Y: 6.95%
• 3Y*: —
• 5Y*: —
• 10Y*: —

SPY

• 1D: -0.31%
• 1M: 0.09%
• YTD: 9.74%
• 6M: 9.27%
• 1Y: 26.65%
• 3Y*: 21.27%
• 5Y*: 13.51%
• 10Y*: 15.70%

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

TAFM vs. SPY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
TAFM AB Tax-Aware Intermediate Municipal ETF	2.19%	4.21%	2.54%	1.51%
SPY State Street SPDR S&P 500 ETF	9.74%	17.72%	24.89%	2.83%

Correlation

The correlation between TAFM and SPY is 0.17, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.17
Correlation (All Time) Calculated using the full available price history since Dec 13, 2023	0.15

Return for Risk

TAFM vs. SPY — Risk / Return Rank

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

TAFM

TAFM Risk / Return Rank: 68
TAFM Sharpe Ratio Rank: 74
TAFM Sortino Ratio Rank: 77
TAFM Omega Ratio Rank: 81
TAFM Calmar Ratio Rank: 54
TAFM Martin Ratio Rank: 55

SPY

SPY Risk / Return Rank: 68
SPY Sharpe Ratio Rank: 69
SPY Sortino Ratio Rank: 66
SPY Omega Ratio Rank: 68
SPY Calmar Ratio Rank: 63
SPY Martin Ratio Rank: 74

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.

TAFM vs. SPY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for AB Tax-Aware Intermediate Municipal ETF (TAFM) 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	TAFM	SPY	Difference
Sharpe ratio: Return per unit of total volatility	2.28	2.16	+0.12
Sortino ratio: Return per unit of downside risk	3.30	2.91	+0.39
Omega ratio: Gain probability vs. loss probability	1.46	1.39	+0.07
Calmar ratio: Return relative to maximum drawdown	2.60	3.01	-0.42
Martin ratio: Return relative to average drawdown	9.22	13.54	-4.31

TAFM vs. SPY - Sharpe Ratio Comparison

The current TAFM Sharpe Ratio is 2.28, which is comparable to the SPY Sharpe Ratio of 2.16. The chart below compares the historical Sharpe Ratios of TAFM 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.

Drawdowns

TAFM vs. SPY - Drawdown Comparison

The maximum TAFM drawdown since its inception was -4.74%, smaller than the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for TAFM and SPY.

Drawdown Indicators

	TAFM	SPY	Difference
Max Drawdown Largest peak-to-trough decline	-4.74%	-55.19%	+50.45%
Max Drawdown (1Y) Largest decline over 1 year	-2.69%	-8.88%	+6.19%
Max Drawdown (3Y) Largest decline over 3 years	—	-18.76%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-24.50%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-33.72%	—
Current Drawdown Current decline from peak	-0.09%	-1.75%	+1.66%
Average Drawdown Average peak-to-trough decline	-0.93%	-9.04%	+8.11%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.76%	1.97%	-1.21%

Volatility

TAFM vs. SPY - Volatility Comparison

The current volatility for AB Tax-Aware Intermediate Municipal ETF (TAFM) is 0.70%, while State Street SPDR S&P 500 ETF (SPY) has a volatility of 4.64%. This indicates that TAFM 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

	TAFM	SPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.70%	4.64%	-3.94%
Volatility (6M) Calculated over the trailing 6-month period	2.05%	9.75%	-7.70%
Volatility (1Y) Calculated over the trailing 1-year period	3.07%	12.43%	-9.36%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.91%	17.14%	-12.23%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.91%	17.99%	-13.08%

TAFM vs. SPY - Expense Ratio Comparison

TAFM has a 0.28% expense ratio, which is higher than SPY's 0.09% expense ratio.

Dividends

TAFM vs. SPY - Dividend Comparison

TAFM's dividend yield for the trailing twelve months is around 3.63%, more than SPY's 1.01% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SPY State Street SPDR S&P 500 ETF	1.01%	1.07%	1.21%	1.40%	1.65%	1.20%	1.52%	1.75%	2.04%	1.80%	2.03%	2.06%
TAFM AB Tax-Aware Intermediate Municipal ETF	3.63%	3.51%	3.35%	0.18%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both TAFM and SPY in my portfolio?

TAFM and SPY have a correlation of 0.17, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TAFM or SPY?

SPY has higher volatility (4.64%) compared to TAFM (0.70%). In terms of maximum drawdown, TAFM dropped -4.74% vs SPY's -55.19%.

Which ETF is better, TAFM or SPY?

On 1-year performance, SPY leads with 26.65% vs 6.95% for TAFM. On fees, SPY is cheaper at 0.09% per year. On volatility, TAFM has been the lower-risk option at 0.70%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TAFM or SPY?

Over the 1-year period, SPY has performed better with a 26.65% return vs 6.95%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TAFM or SPY?

SPY is cheaper with a 0.09% expense ratio, compared with 0.28% for TAFM.

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

TAFM has the higher dividend yield at 3.63%, compared with 1.01% for SPY.

What is the main difference between TAFM and SPY?

TAFM is categorized as Municipal Bonds, while SPY is S&P 500. They also come from different issuers: AllianceBernstein and State Street. Their fees differ too: 0.28% for TAFM and 0.09% for SPY.

Which has better risk-adjusted returns?

TAFM currently has the higher Sharpe Ratio (2.28 vs 2.16), 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.