TSY3.L vs. MUNI.L

Last updated Jun 5, 2026

TSY3.L (SPDR Bloomberg 1-3 Year US Treasury Bond UCITS ETF) and MUNI.L (Invesco US Municipal Bond UCITS ETF Dist) are both exchange-traded funds - TSY3.L is a Government Bonds fund tracking the Bloomberg US 1-3 Year Treasury Bond Index, while MUNI.L is a Municipal Bonds fund tracking the ICE BofA US Taxable Municipal Securities Plus Index. Both are passively managed. Over the past 5 years, TSY3.L returned 2.87%/yr vs 0.73%/yr for MUNI.L. At a 0.20 correlation, their price movements are largely independent. TSY3.L charges 0.05%/yr vs 0.28%/yr for MUNI.L.

Performance

TSY3.L vs. MUNI.L - Performance Comparison

The chart below illustrates the hypothetical performance of a £10,000 investment in SPDR Bloomberg 1-3 Year US Treasury Bond UCITS ETF (TSY3.L) and Invesco US Municipal Bond UCITS ETF Dist (MUNI.L). The values are adjusted to include any dividend payments, if applicable.

Different Trading Currencies

TSY3.L is traded in GBP, while MUNI.L is traded in USD. To make them comparable, the MUNI.L values have been converted to GBP using the latest available exchange rates.

Returns By Period

In the year-to-date period, TSY3.L achieves a 0.72% return, which is significantly lower than MUNI.L's 1.31% return.

TSY3.L

• 1D: 0.10%
• 1M: 1.10%
• YTD: 0.72%
• 6M: 0.32%
• 1Y: 4.44%
• 3Y*: 1.49%
• 5Y*: 2.87%
• 10Y*: 2.44%

MUNI.L

• 1D: 0.44%
• 1M: 1.62%
• YTD: 1.31%
• 6M: -0.98%
• 1Y: 7.66%
• 3Y*: 1.73%
• 5Y*: 0.73%
• 10Y*: —

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

TSY3.L vs. MUNI.L - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
TSY3.L SPDR Bloomberg 1-3 Year US Treasury Bond UCITS ETF	0.72%	-2.00%	5.79%	-1.65%	7.59%	3.48%
MUNI.L Invesco US Municipal Bond UCITS ETF Dist	1.31%	-0.23%	3.22%	1.75%	-10.36%	8.12%

Correlation

The correlation between TSY3.L and MUNI.L is 0.18, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.18
Correlation (3Y) Calculated over the trailing 3-year period	0.20
Correlation (5Y) Calculated over the trailing 5-year period	0.20
Correlation (All Time) Calculated using the full available price history since Feb 23, 2021	0.20

Return for Risk

TSY3.L vs. MUNI.L — Risk / Return Rank

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

TSY3.L

TSY3.L Risk / Return Rank: 21
TSY3.L Sharpe Ratio Rank: 22
TSY3.L Sortino Ratio Rank: 21
TSY3.L Omega Ratio Rank: 20
TSY3.L Calmar Ratio Rank: 22
TSY3.L Martin Ratio Rank: 21

MUNI.L

MUNI.L Risk / Return Rank: 62
MUNI.L Sharpe Ratio Rank: 58
MUNI.L Sortino Ratio Rank: 73
MUNI.L Omega Ratio Rank: 60
MUNI.L Calmar Ratio Rank: 72
MUNI.L Martin Ratio Rank: 50

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.

TSY3.L vs. MUNI.L - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR Bloomberg 1-3 Year US Treasury Bond UCITS ETF (TSY3.L) and Invesco US Municipal Bond UCITS ETF Dist (MUNI.L). 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.

	TSY3.L	MUNI.L	Difference
Sharpe ratio: Return per unit of total volatility	0.72	1.69	-0.97
Sortino ratio: Return per unit of downside risk	1.09	2.40	-1.31
Omega ratio: Gain probability vs. loss probability	1.13	1.31	-0.19
Calmar ratio: Return relative to maximum drawdown	0.98	2.78	-1.80
Martin ratio: Return relative to average drawdown	2.50	6.06	-3.56
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

TSY3.L vs. MUNI.L - Sharpe Ratio Comparison

The current TSY3.L Sharpe Ratio is 0.72, which is lower than the MUNI.L Sharpe Ratio of 1.69. The chart below compares the historical Sharpe Ratios of TSY3.L and MUNI.L, 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

	TSY3.L	MUNI.L	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.72	1.69	-0.97
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.35	0.12	+0.23
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.26	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.31	0.09	+0.21

Drawdowns

TSY3.L vs. MUNI.L - Drawdown Comparison

The maximum TSY3.L drawdown since its inception was -18.75%, which is greater than MUNI.L's maximum drawdown of -15.64%. Use the drawdown chart below to compare losses from any high point for TSY3.L and MUNI.L.

Drawdown Indicators

	TSY3.L	MUNI.L	Difference
Max Drawdown Largest peak-to-trough decline	-18.75%	-15.64%	-3.11%
Max Drawdown (1Y) Largest decline over 1 year	-4.50%	-5.67%	+1.17%
Max Drawdown (3Y) Largest decline over 3 years	-8.92%	-8.66%	-0.26%
Max Drawdown (5Y) Largest decline over 5 years	-16.38%	-15.64%	-0.74%
Max Drawdown (10Y) Largest decline over 10 years	-18.75%	—	—
Current Drawdown Current decline from peak	-7.69%	-6.35%	-1.34%
Average Drawdown Average peak-to-trough decline	-7.81%	-8.11%	+0.30%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.77%	3.34%	-1.57%

Volatility

TSY3.L vs. MUNI.L - Volatility Comparison

The current volatility for SPDR Bloomberg 1-3 Year US Treasury Bond UCITS ETF (TSY3.L) is 1.67%, while Invesco US Municipal Bond UCITS ETF Dist (MUNI.L) has a volatility of 1.96%. This indicates that TSY3.L experiences smaller price fluctuations and is considered to be less risky than MUNI.L based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TSY3.L	MUNI.L	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.67%	1.96%	-0.29%
Volatility (6M) Calculated over the trailing 6-month period	4.50%	6.64%	-2.14%
Volatility (1Y) Calculated over the trailing 1-year period	6.14%	9.35%	-3.21%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	8.21%	18.26%	-10.05%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	9.29%	18.19%	-8.90%

TSY3.L vs. MUNI.L - Expense Ratio Comparison

TSY3.L has a 0.05% expense ratio, which is lower than MUNI.L's 0.28% expense ratio.

Dividends

TSY3.L vs. MUNI.L - Dividend Comparison

TSY3.L's dividend yield for the trailing twelve months is around 3.92%, less than MUNI.L's 4.54% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MUNI.L Invesco US Municipal Bond UCITS ETF Dist	4.54%	4.52%	4.60%	4.09%	3.19%	2.01%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
TSY3.L SPDR Bloomberg 1-3 Year US Treasury Bond UCITS ETF	3.92%	4.25%	4.07%	3.02%	0.60%	0.56%	1.84%	2.14%	1.31%	1.04%	0.63%	0.52%

Frequently Asked Questions

Can I hold both TSY3.L and MUNI.L in my portfolio?

TSY3.L and MUNI.L have a correlation of 0.18, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, TSY3.L or MUNI.L?

On fees, TSY3.L is cheaper at 0.05% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, TSY3.L or MUNI.L?

TSY3.L is cheaper with a 0.05% expense ratio, compared with 0.28% for MUNI.L.

What is the main difference between TSY3.L and MUNI.L?

TSY3.L is categorized as Government Bonds, while MUNI.L is Municipal Bonds. TSY3.L tracks Bloomberg US 1-3 Year Treasury Bond Index, while MUNI.L tracks ICE BofA US Taxable Municipal Securities Plus Index. They also come from different issuers: State Street and Invesco. Their fees differ too: 0.05% for TSY3.L and 0.28% for MUNI.L.