FMN vs FQAL
Federated Hermes Premier Municipal Income Fund vs Fidelity Quality Factor ETF
Quick Verdict
FQAL has a lower expense ratio. FQAL delivered stronger 1-year returns. FMN offers more diversification with 150 holdings.
Side-by-Side Comparison
| Metric | FMN | FQAL | Winner |
|---|---|---|---|
| Expense Ratio | 0.75% | 0.15% | |
| AUM | $16M | $1.4B | |
| Dividend Yield | 4.43% | 1.15% | |
| Holdings | 150 | 130 | |
| YTD Return | +2.12% | +12.72% | |
| 1Y Return | +8.37% | +18.03% | |
| 3Y Return (annualized) | +7.35% | +20.16% | |
| 5Y Return (annualized) | -2.78% | +11.71% | |
| Volatility (annualized) | 14.7% | 15.0% | |
| Max Drawdown | -53.4% | -34.1% | |
| Fund Family | Federated Hermes | Fidelity Investments (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Dec 20, 2002 | Sep 12, 2016 |
FMN vs FQAL Performance
Federated Hermes Premier Municipal Income Fund (FMN) is a ETF from Federated Hermes and Fidelity Quality Factor ETF (FQAL) is a ETF from Fidelity Investments (US). Over the past year FMN returned +8.37% while FQAL returned +18.03%. Year to date, FMN is up 2.12% versus a gain of 12.72% for FQAL.
Over three years, FMN compounded at +7.35% per year against +20.16% for FQAL; over five years the annualized figures are -2.78% and +11.71% respectively. Across the full 10-year window we track, FQAL has the edge at +13.76% annualized vs -0.26%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FQAL has been the more volatile fund, with annualized monthly volatility of 15.0% compared with 14.7% for FMN. 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 -53.4% for FMN and -34.1% for FQAL. 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 0.55. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FMN charges 0.75% per year while FQAL charges 0.15%. On a $10,000 position that is $75 vs $15 annually, a gap of $60 per year that compounds over a long holding period. On income, FMN currently yields 4.43% against 1.15% for FQAL.
Holdings Overlap
FMN and FQAL share 0 holdings out of 210 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, FMN or FQAL?
FMN has an expense ratio of 0.75% while FQAL charges 0.15%. FQAL is the cheaper option. On a $10,000 investment, that is $60 per year of difference.
Which performed better, FMN or FQAL?
Over the past year FMN returned +8.37% vs +18.03% for FQAL, so FQAL leads on 1-year performance. Over the longest common window we track (10 years), FMN annualized -0.26% vs +13.76% for FQAL. Past performance does not guarantee future results.
Which is riskier, FMN or FQAL?
FQAL has been the more volatile fund at 15.0% annualized versus 14.7% for FMN. Worst drawdown: FMN -53.4% vs FQAL -34.1%.
Should I hold both FMN and FQAL?
FMN and FQAL have a monthly-return correlation of 0.55, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FMN and FQAL?
FMN and FQAL share 0 common holdings with a 0.0% weight overlap. Combined, they hold 210 unique securities.
Which pays a higher dividend, FMN or FQAL?
FMN yields 4.43% while FQAL yields 1.15%, so FMN currently pays the higher dividend yield.
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