Quick Verdict

FMN has a lower expense ratio. FTKI delivered stronger 1-year returns. FTKI offers more diversification with 144 holdings.

Lower Fees: FMNHigher Returns: FTKIMore Diversified: FTKI

Side-by-Side Comparison

MetricFMNFTKIWinner
Expense Ratio0.75%0.85%
AUM$16M$25M
Dividend Yield4.29%12.53%
Holdings150170
YTD Return+3.51%+13.99%
1Y Return+9.90%+23.96%
3Y Return (annualized)+7.05%-
5Y Return (annualized)-2.30%-
Volatility (annualized)14.7%10.3%
Max Drawdown-53.4%-15.2%
Fund FamilyFederated HermesFirst Trust Portfolios (US)
CategoryTax PreferredEquity
InceptionDec 20, 2002Feb 26, 2025

FMN vs FTKI Performance

Federated Hermes Premier Municipal Income Fund (FMN) is a ETF from Federated Hermes and First Trust Small Cap BuyWrite Income ETF (FTKI) is a ETF from First Trust Portfolios (US). Over the past year FMN returned +9.90% while FTKI returned +23.96%. Year to date, FMN is up 3.51% versus a gain of 13.99% for FTKI.

Risk: Volatility and Drawdowns

FMN has been the more volatile fund, with annualized monthly volatility of 14.7% compared with 10.3% for FTKI. 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 -15.2% for FTKI. 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 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

FMN charges 0.75% per year while FTKI charges 0.85%. On a $10,000 position that is $75 vs $85 annually, a gap of $10 per year that compounds over a long holding period. On income, FMN currently yields 4.29% against 12.53% for FTKI.

Holdings Overlap

0.0%overlap

FMN and FTKI share 0 holdings out of 229 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 FTKI?

FMN has an expense ratio of 0.75% while FTKI charges 0.85%. FMN is the cheaper option. On a $10,000 investment, that is $10 per year of difference.

Which performed better, FMN or FTKI?

Over the past year FMN returned +9.90% vs +23.96% for FTKI, so FTKI leads on 1-year performance. Over the longest common window we track (1 years), FMN annualized -0.21% vs +13.38% for FTKI. Past performance does not guarantee future results.

Which is riskier, FMN or FTKI?

FMN has been the more volatile fund at 14.7% annualized versus 10.3% for FTKI. Worst drawdown: FMN -53.4% vs FTKI -15.2%.

Should I hold both FMN and FTKI?

FMN and FTKI have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between FMN and FTKI?

FMN and FTKI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 229 unique securities.

Which pays a higher dividend, FMN or FTKI?

FMN yields 4.29% while FTKI yields 12.53%, so FTKI currently pays the higher dividend yield.

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