FMHI vs TAXM
First Trust Municipal High Income ETF vs BondBloxx IR+M Tax-Aware ETF for Massachusetts Residents
Which is better, FMHI or TAXM?
Nearly the same fund. TAXM costs less.
TAXM has a lower expense ratio. FMHI led over 1Y, TAXM over the full window. The two have moved almost in lockstep, correlation 0.97.
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 | TAXM |
|---|---|---|
| Expense Ratio | 0.49% | 0.35%Best |
| AUM | $1.1B | $41M |
| Dividend Yield | 4.55% | 3.38% |
| Holdings | 2,277 | 317 |
| YTD Return | +0.22%Best | -0.79% |
| 1Y Return | +0.33%Best | -0.59% |
| 3Y Return (annualized) | +4.92% | - |
| 5Y Return (annualized) | +0.09% | - |
| Volatility (annualized) | 6.3% | 5.2%Best |
| Max Drawdown | -7.4% | -6.2%Best |
| $10,000 over 1.7 years | $10,292 | $10,298Best |
| Fund Family | First Trust Portfolios (US) | BondBloxx |
| Category | Tax Preferred | Tax Preferred |
| Style | Municipal Bond | Municipal Bond |
| Inception | Nov 2, 2017 | Mar 13, 2025 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown, and the $10,000 over 1.7 years row, are measured over the window both funds cover: Mar 13, 2025 to Nov 12, 2026 (1.7 years).
FMHI vs TAXM 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 1.7 years both funds cover.
FMHI vs TAXM Performance
First Trust Municipal High Income ETF (FMHI) is an ETF from First Trust Portfolios (US) and BondBloxx IR+M Tax-Aware ETF for Massachusetts Residents (TAXM) is an ETF from BondBloxx. Over the past year FMHI returned +0.33% while TAXM returned -0.59%. Year to date, FMHI is up 0.22% versus a loss of 0.79% for TAXM.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FMHI has been the more volatile fund, with annualized monthly volatility of 6.3% compared with 5.2% for TAXM. 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 -6.2% for TAXM. 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 TAXM charges 0.35%. On a $10,000 position that is $49 vs $35 annually, a gap of $14 per year that compounds over a long holding period. On income, FMHI currently yields 4.55% against 3.38% for TAXM.
Holdings Overlap
We hold position weights for 468 holdings in FMHI and 66 in TAXM, totalling 57.6% and 30.8% 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, 3 positions appear in both.
3 positions in common, counted across the 468 positions we hold weights for in FMHI and 66 in TAXM, against full books of 2,277 and 317.
Top Shared Holdings
| Stock | Weight in FMHI | Weight in TAXM | Difference |
|---|---|---|---|
| MA MASDEV 5 07/01/20Massachusetts St D 5 7/55 5 | 0.09% | 0.63% | 0.54% |
| GA MAIUTL 09/01/2052Main Street Natural Gas Inc 4.00% 09/01/2052 | 0.17% | 0.25% | 0.08% |
| AL BBEUTL 12/01/2053Black Belt Energy Gas District 5.25 12/01/2053 | 0.10% | 0.13% | 0.03% |
You are not choosing between two funds in isolation.
Whichever of FMHI and TAXM 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 TAXM?
FMHI has an expense ratio of 0.49% while TAXM charges 0.35%. TAXM is the cheaper option, by $14 a year on a $10,000 investment.
Which performed better, FMHI or TAXM?
Over the past year FMHI returned +0.33% vs -0.59% for TAXM, so FMHI leads on 1-year performance. Over the longest common window we track (2 years), FMHI annualized +1.71% vs +1.74% for TAXM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FMHI or TAXM?
FMHI has been the more volatile fund at 6.3% annualized versus 5.2% for TAXM. Worst drawdown: FMHI -7.4% vs TAXM -6.2%.
Should I hold both FMHI and TAXM?
FMHI and TAXM 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 TAXM?
FMHI yields 4.55% while TAXM yields 3.38%, so FMHI currently pays the higher dividend yield.
Is TAXM better than FMHI?
TAXM has a lower expense ratio. FMHI led over 1Y, TAXM over 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.