Quick Verdict

FTGS has a lower expense ratio. FTGS delivered stronger 1-year returns. FMN offers more diversification with 85 holdings.

Lower Fees: FTGSHigher Returns: FTGSMore Diversified: FMN

Side-by-Side Comparison

MetricFMNFTGSWinner
Expense Ratio0.75%0.60%
AUM$16M$1.3B
Dividend Yield4.29%0.09%
Holdings15051
YTD Return+3.51%+12.49%
1Y Return+9.90%+14.75%
3Y Return (annualized)+7.05%+18.25%
5Y Return (annualized)-2.30%-
Volatility (annualized)14.7%14.6%
Max Drawdown-53.4%-20.0%
Fund FamilyFederated HermesFirst Trust Portfolios (US)
CategoryTax PreferredEquity
InceptionDec 20, 2002Oct 25, 2022

FMN vs FTGS Performance

Federated Hermes Premier Municipal Income Fund (FMN) is a ETF from Federated Hermes and First Trust Growth Strength ETF (FTGS) is a ETF from First Trust Portfolios (US). Over the past year FMN returned +9.90% while FTGS returned +14.75%. Year to date, FMN is up 3.51% versus a gain of 12.49% for FTGS.

Over three years, FMN compounded at +7.05% per year against +18.25% for FTGS. Across the full 4-year window we track, FTGS has the edge at +19.84% annualized vs -0.21%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

FMN has been the more volatile fund, with annualized monthly volatility of 14.7% compared with 14.6% for FTGS. 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 -20.0% for FTGS. 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 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

FMN charges 0.75% per year while FTGS charges 0.60%. On a $10,000 position that is $75 vs $60 annually, a gap of $15 per year that compounds over a long holding period. On income, FMN currently yields 4.29% against 0.09% for FTGS.

Holdings Overlap

0.0%overlap

FMN and FTGS share 0 holdings out of 135 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 FTGS?

FMN has an expense ratio of 0.75% while FTGS charges 0.60%. FTGS is the cheaper option. On a $10,000 investment, that is $15 per year of difference.

Which performed better, FMN or FTGS?

Over the past year FMN returned +9.90% vs +14.75% for FTGS, so FTGS leads on 1-year performance. Over the longest common window we track (4 years), FMN annualized -0.21% vs +19.84% for FTGS. Past performance does not guarantee future results.

Which is riskier, FMN or FTGS?

FMN has been the more volatile fund at 14.7% annualized versus 14.6% for FTGS. Worst drawdown: FMN -53.4% vs FTGS -20.0%.

Should I hold both FMN and FTGS?

FMN and FTGS have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between FMN and FTGS?

FMN and FTGS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 135 unique securities.

Which pays a higher dividend, FMN or FTGS?

FMN yields 4.29% while FTGS yields 0.09%, so FMN currently pays the higher dividend yield.

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