FMHI vs VOO
First Trust Municipal High Income ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. FMHI offers more diversification with 736 holdings.
Side-by-Side Comparison
| Metric | FMHI | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.49% | 0.03% | |
| AUM | $1.0B | $997.4B | |
| Dividend Yield | 4.35% | 1.08% | |
| Holdings | 736 | 509 | |
| YTD Return | +2.26% | +14.27% | |
| 1Y Return | +7.46% | +21.79% | |
| 3Y Return (annualized) | +4.83% | +22.19% | |
| 5Y Return (annualized) | +0.41% | +13.28% | |
| Volatility (annualized) | 7.2% | 14.2% | |
| Max Drawdown | -18.8% | -34.3% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Nov 2, 2017 | Sep 7, 2010 |
FMHI vs VOO Performance
First Trust Municipal High Income ETF (FMHI) is a ETF from First Trust Portfolios (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year FMHI returned +7.46% while VOO returned +21.79%. Year to date, FMHI is up 2.26% versus a gain of 14.27% for VOO.
Over three years, FMHI compounded at +4.83% per year against +22.19% for VOO; over five years the annualized figures are +0.41% and +13.28% respectively. Across the full 9-year window we track, VOO has the edge at +13.59% annualized vs +1.82%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.2% 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 -34.3% for VOO. 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 VOO charges 0.03%. On a $10,000 position that is $49 vs $3 annually, a gap of $46 per year that compounds over a long holding period. On income, FMHI currently yields 4.35% against 1.08% for VOO.
Holdings Overlap
FMHI and VOO share 0 holdings out of 993 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 VOO?
FMHI has an expense ratio of 0.49% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $46 per year of difference.
Which performed better, FMHI or VOO?
Over the past year FMHI returned +7.46% vs +21.79% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (9 years), FMHI annualized +1.82% vs +13.59% for VOO. Past performance does not guarantee future results.
Which is riskier, FMHI or VOO?
VOO has been the more volatile fund at 14.2% annualized versus 7.2% for FMHI. Worst drawdown: FMHI -18.8% vs VOO -34.3%.
Should I hold both FMHI and VOO?
FMHI and VOO 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 VOO?
FMHI and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 993 unique securities.
Which pays a higher dividend, FMHI or VOO?
FMHI yields 4.35% while VOO yields 1.08%, so FMHI currently pays the higher dividend yield.
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