FMN vs FTCB
FMN vs FTCB
Federated Hermes Premier Municipal Income Fund vs First Trust Core Investment Grade ETF
Quick Verdict
FTCB has a lower expense ratio. FMN delivered stronger 1-year returns. FTCB offers more diversification with 331 holdings.
Side-by-Side Comparison
| Metric | FMN | FTCB | Winner |
|---|---|---|---|
| Expense Ratio | 0.75% | 0.56% | |
| AUM | $16M | $2.5B | |
| Dividend Yield | 4.29% | 5.24% | |
| Holdings | 150 | 721 | |
| YTD Return | +3.51% | +0.12% | |
| 1Y Return | +9.90% | +2.43% | |
| 3Y Return (annualized) | +7.05% | - | |
| 5Y Return (annualized) | -2.30% | - | |
| Volatility (annualized) | 14.7% | 5.1% | |
| Max Drawdown | -53.4% | -5.0% | |
| Fund Family | Federated Hermes | First Trust Portfolios (US) | |
| Category | Tax Preferred | Fixed Income | |
| Inception | Dec 20, 2002 | Nov 7, 2023 |
FMN vs FTCB Performance
Federated Hermes Premier Municipal Income Fund (FMN) is a ETF from Federated Hermes and First Trust Core Investment Grade ETF (FTCB) is a ETF from First Trust Portfolios (US). Over the past year FMN returned +9.90% while FTCB returned +2.43%. Year to date, FMN is up 3.51% versus a gain of 0.12% for FTCB.
Risk: Volatility and Drawdowns
FMN has been the more volatile fund, with annualized monthly volatility of 14.7% compared with 5.1% for FTCB. 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 -5.0% for FTCB. 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 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FMN charges 0.75% per year while FTCB charges 0.56%. On a $10,000 position that is $75 vs $56 annually, a gap of $19 per year that compounds over a long holding period. On income, FMN currently yields 4.29% against 5.24% for FTCB.
Holdings Overlap
FMN and FTCB share 0 holdings out of 416 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 FTCB?
FMN has an expense ratio of 0.75% while FTCB charges 0.56%. FTCB is the cheaper option. On a $10,000 investment, that is $19 per year of difference.
Which performed better, FMN or FTCB?
Over the past year FMN returned +9.90% vs +2.43% for FTCB, so FMN leads on 1-year performance. Over the longest common window we track (3 years), FMN annualized -0.21% vs +5.77% for FTCB. Past performance does not guarantee future results.
Which is riskier, FMN or FTCB?
FMN has been the more volatile fund at 14.7% annualized versus 5.1% for FTCB. Worst drawdown: FMN -53.4% vs FTCB -5.0%.
Should I hold both FMN and FTCB?
FMN and FTCB have a monthly-return correlation of 0.74, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FMN and FTCB?
FMN and FTCB share 0 common holdings with a 0.0% weight overlap. Combined, they hold 416 unique securities.
Which pays a higher dividend, FMN or FTCB?
FMN yields 4.29% while FTCB yields 5.24%, so FTCB currently pays the higher dividend yield.
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