FMHI vs TAFM
First Trust Municipal High Income ETF vs AB Tax-Aware Intermediate Municipal ETF
Which is better, FMHI or TAFM?
Nearly the same fund. TAFM costs less.
TAFM has a lower expense ratio. FMHI led over 1Y, 3Y and the full window. The two have moved almost in lockstep, correlation 0.96.
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
| Metric | FMHI | TAFM |
|---|---|---|
| Expense Ratio | 0.49% | 0.28%Best |
| AUM | $1.1B | $1.2B |
| Dividend Yield | 4.55% | 3.74% |
| Holdings | 2,277 | 1,519 |
| YTD Return | +1.11%Best | +0.67% |
| 1Y Return | +1.08%Best | +0.70% |
| 3Y Return (annualized) | +5.24%Best | +3.11% |
| 5Y Return (annualized) | +0.27% | - |
| Volatility (annualized) | 5.4% | 4.9%Best |
| Max Drawdown | -7.4% | -6.6%Best |
| $10,000 over 2.9 years | $11,127Best | $10,929 |
| Fund Family | First Trust Portfolios (US) | AllianceBernstein L.P. |
| Category | Tax Preferred | Tax Preferred |
| Style | Municipal Bond | Municipal Bond |
| Inception | Nov 2, 2017 | Dec 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 TAFM 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.
FMHI vs TAFM Performance
First Trust Municipal High Income ETF (FMHI) is an ETF from First Trust Portfolios (US) and AB Tax-Aware Intermediate Municipal ETF (TAFM) is an ETF from AllianceBernstein L.P.. Over the past year FMHI returned +1.08% while TAFM returned +0.70%. Year to date, FMHI is up 1.11% versus a gain of 0.67% for TAFM.
Over three years, FMHI compounded at +5.24% per year against +3.11% for TAFM.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FMHI has been the more volatile fund, with annualized monthly volatility of 5.4% compared with 4.9% for TAFM. 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 -6.6% for TAFM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.96. 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 TAFM 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 3.74% for TAFM.
Holdings Overlap
We hold position weights for 468 holdings in FMHI and 264 in TAFM, totalling 57.6% and 30.9% 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, 36 positions appear in both.
36 positions in common, counted across the 468 positions we hold weights for in FMHI and 264 in TAFM, against full books of 2,277 and 1,519.
Top Shared Holdings
| Stock | Weight in FMHI | Weight in TAFM | Difference |
|---|---|---|---|
| WI PUBTRN 6.5 06/30/Public Fin Auth Wi Toll Revenu Pubtrn 06/60 Fixed 6.5 | 0.10% | 0.84% | 0.74% |
| NY NYTTRN 5.5 06/30/New York Transportation Development Corporation, New York, Special Facility Revenue Bonds, John F Kennedy International Airport New Terminal 1 Project | 0.14% | 0.54% | 0.40% |
| NY NYTTRN 6 06/30/20New York St Transprtn Dev Corp Nyttrn 06/54 Fixed 6 | 0.10% | 0.47% | 0.37% |
| OH COLAPT 5.5 01/01/Columbus Ohio Regl Arpt 5.5 01Jan50 | 0.37% | 0.18% | 0.19% |
| WI PUBTRN 5.75 06/30Public Fin Auth Wi Toll Revenu Pubtrn 06/60 Fixed Oid 5.75 | 0.27% | 0.27% | 0.00% |
| OH BUCGEN 5 06/01/20Buckeye Tobacco Settlement Financing Auth Oh Ref-Senior-Class 2-Ser B-2 5.000 Jun 01 55 | 0.30% | 0.20% | 0.10% |
| AL BBEUTL 03/01/2055Black Belt Energy Gas Dist Ala 5% Nov 01, 2034 | 0.18% | 0.32% | 0.14% |
| CA SSJUTL 01/01/2056San Joaquin Vy Calif Clean Energy Auth Clean 5.5% 01/01/2056 | 0.16% | 0.24% | 0.08% |
| WI PUBGEN 5 06/01/20Public Finance Authority Muni Orig Issue Disc | 0.38% | 0.01% | 0.37% |
| OK TULAPT 6.25 12/01Tulapt 6.250 12/01/35 | 0.19% | 0.20% | 0.01% |
You are not choosing between two funds in isolation.
Whichever of FMHI and TAFM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, FMHI or TAFM?
FMHI has an expense ratio of 0.49% while TAFM charges 0.28%. TAFM is the cheaper option, by $21 a year on a $10,000 investment.
Which performed better, FMHI or TAFM?
Over the past year FMHI returned +1.08% vs +0.70% for TAFM, 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 TAFM?
FMHI has been the more volatile fund at 5.4% annualized versus 4.9% for TAFM. Worst drawdown: FMHI -7.4% vs TAFM -6.6%.
Should I hold both FMHI and TAFM?
FMHI and TAFM have a monthly-return correlation of 0.96, 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 TAFM?
FMHI yields 4.55% while TAFM yields 3.74%, so FMHI currently pays the higher dividend yield.
Is TAFM better than FMHI?
TAFM has a lower expense ratio. FMHI led over 1Y, 3Y and the full window. The two have moved almost in lockstep, correlation 0.96. Which one suits a particular account depends on what it is for. This is information, not a recommendation.