FMHI vs SPY
First Trust Municipal High Income ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. FMHI offers more diversification with 736 holdings.
Side-by-Side Comparison
| Metric | FMHI | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.49% | 0.09% | |
| AUM | $1.0B | $821.1B | |
| Dividend Yield | 4.35% | 1.01% | |
| Holdings | 736 | 505 | |
| YTD Return | +1.31% | +12.68% | |
| 1Y Return | +6.78% | +21.82% | |
| 3Y Return (annualized) | +4.87% | +21.98% | |
| 5Y Return (annualized) | +0.23% | +12.89% | |
| Volatility (annualized) | 7.2% | 15.3% | |
| Max Drawdown | -18.8% | -56.5% | |
| Fund Family | First Trust Portfolios (US) | State Street Investment Management | |
| Category | Tax Preferred | Equity | |
| Inception | Nov 2, 2017 | Jan 22, 1993 |
FMHI vs SPY Performance
First Trust Municipal High Income ETF (FMHI) is a ETF from First Trust Portfolios (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year FMHI returned +6.78% while SPY returned +21.82%. Year to date, FMHI is up 1.31% versus a gain of 12.68% for SPY.
Over three years, FMHI compounded at +4.87% per year against +21.98% for SPY; over five years the annualized figures are +0.23% and +12.89% respectively. Across the full 9-year window we track, SPY has the edge at +8.81% annualized vs +1.71%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 7.2% for FMHI. 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 -18.8% for FMHI and -56.5% for SPY. 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 0.53. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FMHI charges 0.49% per year while SPY charges 0.09%. On a $10,000 position that is $49 vs $9 annually, a gap of $40 per year that compounds over a long holding period. On income, FMHI currently yields 4.35% against 1.01% for SPY.
Holdings Overlap
FMHI and SPY share 0 holdings out of 992 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, FMHI or SPY?
FMHI has an expense ratio of 0.49% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $40 per year of difference.
Which performed better, FMHI or SPY?
Over the past year FMHI returned +6.78% vs +21.82% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (9 years), FMHI annualized +1.71% vs +8.81% for SPY. Past performance does not guarantee future results.
Which is riskier, FMHI or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 7.2% for FMHI. Worst drawdown: FMHI -18.8% vs SPY -56.5%.
Should I hold both FMHI and SPY?
FMHI and SPY have a monthly-return correlation of 0.53, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FMHI and SPY?
FMHI and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 992 unique securities.
Which pays a higher dividend, FMHI or SPY?
FMHI yields 4.35% while SPY yields 1.01%, so FMHI currently pays the higher dividend yield.
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