FMHI vs TAFL

FMHI vs TAFL

Which is better, FMHI or TAFL?

Nearly the same fund. TAFL costs less.

TAFL has a lower expense ratio. FMHI led over 1Y, 3Y and the full window. The two have moved almost in lockstep, correlation 0.97.

Lower Fees: TAFLHigher Returns: FMHI

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricFMHITAFL
Expense Ratio0.49%0.28%Best
AUM$1.1B$59M
Dividend Yield4.55%4.27%
Holdings2,277319
YTD Return+1.11%Best+0.00%
1Y Return+1.08%Best-0.20%
3Y Return (annualized)+5.24%Best+2.57%
5Y Return (annualized)+0.27%-
Volatility (annualized)5.4%Best5.8%
Max Drawdown-7.4%Best-7.8%
$10,000 over 2.9 years$11,127Best$10,764
Fund FamilyFirst Trust Portfolios (US)AllianceBernstein L.P.
CategoryTax PreferredTax Preferred
StyleMunicipal BondMunicipal Bond
InceptionNov 2, 2017Dec 13, 2023

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown, and the $10,000 over 2.9 years row, are measured over the window both funds cover: Dec 13, 2023 to Nov 11, 2026 (2.9 years).

FMHI vs TAFL growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 2.9 years both funds cover.

Compare FMHI against instead:FMHI vs SPYFMHI vs QQQFMHI vs VOOFMHI vs VTITAFL against:TAFL vs VXUS

FMHI vs TAFL Performance

First Trust Municipal High Income ETF (FMHI) is an ETF from First Trust Portfolios (US) and AB Tax-Aware Long Municipal ETF (TAFL) is an ETF from AllianceBernstein L.P.. Over the past year FMHI returned +1.08% while TAFL returned -0.20%. Year to date, FMHI is up 1.11% versus a gain of 0.00% for TAFL.

Over three years, FMHI compounded at +5.24% per year against +2.57% for TAFL.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

TAFL has been the more volatile fund, with annualized monthly volatility of 5.8% compared with 5.4% 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 -7.4% for FMHI and -7.8% for TAFL. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.97. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

FMHI charges 0.49% per year while TAFL charges 0.28%. On a $10,000 position that is $49 vs $28 annually, a gap of $21 per year that compounds over a long holding period. On income, FMHI currently yields 4.55% against 4.27% for TAFL.

Holdings Overlap

We hold position weights for 468 holdings in FMHI and 68 in TAFL, totalling 57.6% and 53.3% of the two funds. Neither is a share of a fund we can divide by, so no overlap percentage is shown here. Within what we can see, 11 positions appear in both.

11 positions in common, counted across the 468 positions we hold weights for in FMHI and 68 in TAFL, against full books of 2,277 and 319.

Top Shared Holdings

StockWeight in FMHIWeight in TAFLDifference
OR ASTMED 5.25 08/01Astoria Or Hosp Facs Auth Astmed 08/54 Fixed 5.25 5.25 2054-08-010.07%1.50%1.43%
OH BUCGEN 5 06/01/20Buckeye Tobacco Settlement Financing Auth Oh Ref-Senior-Class 2-Ser B-2 5.000 Jun 01 550.30%0.60%0.30%
IL ILS 5.5 05/01/204Illinois State, General Obligation Bonds, May Series 2023B 5.5 05/01/20470.14%0.58%0.44%
IN INPGEN 6 03/01/20Indianapolis In Local Public Impt Bond Bank 6%, Due 03/01/20530.17%0.25%0.08%
CT STMHSG 6.5 10/01/Stamford Ct Hsg Auth Stmhsg 10/55 Fixed 6.50.22%0.17%0.05%
NY SOBGEN 6 12/01/20Suffolk Regl Off-Track Betting Regd Oid B/E 6.00000000 12/01/530.20%0.17%0.03%
IL CHIEDU 5 12/01/20Chicago Board Of Education Series 2023-A 5.00%, 12/01/340.09%0.24%0.15%
TX HOUAPT 5.5 07/15/City Of Houston, Series 2024 B 5.5 07/15/20380.15%0.17%0.02%
IL CHI 5.5 01/01/204City Of Chicago Il 5.5 01/01/20490.07%0.14%0.07%
IN VLPFAC 4.88 01/01City Of Valparaiso In 4.875% 01/01/20440.05%0.16%0.11%

You are not choosing between two funds in isolation.

Whichever of FMHI and TAFL you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

FMHITAFL

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, FMHI or TAFL?

FMHI has an expense ratio of 0.49% while TAFL charges 0.28%. TAFL is the cheaper option, by $21 a year on a $10,000 investment.

Which performed better, FMHI or TAFL?

Over the past year FMHI returned +1.08% vs -0.20% for TAFL, so FMHI leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, FMHI or TAFL?

TAFL has been the more volatile fund at 5.8% annualized versus 5.4% for FMHI. Worst drawdown: FMHI -7.4% vs TAFL -7.8%.

Should I hold both FMHI and TAFL?

FMHI and TAFL have a monthly-return correlation of 0.97, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.

Which pays a higher dividend, FMHI or TAFL?

FMHI yields 4.55% while TAFL yields 4.27%, so FMHI currently pays the higher dividend yield.

Is TAFL better than FMHI?

TAFL has a lower expense ratio. FMHI led over 1Y, 3Y and the full window. The two have moved almost in lockstep, correlation 0.97. Which one suits a particular account depends on what it is for. This is information, not a recommendation.