FMN vs HFXI

Quick Verdict

HFXI has a lower expense ratio. HFXI delivered stronger 1-year returns. HFXI offers more diversification with 759 holdings.

Lower Fees: HFXIHigher Returns: HFXIMore Diversified: HFXI

Side-by-Side Comparison

MetricFMNHFXIWinner
Expense Ratio0.75%0.20%
AUM$16M$2.0B
Dividend Yield4.29%3.96%
Holdings150858
YTD Return+2.95%+17.72%
1Y Return+8.80%+31.13%
3Y Return (annualized)+6.66%+20.98%
5Y Return (annualized)-2.53%+12.28%
Volatility (annualized)14.7%13.9%
Max Drawdown-53.4%-34.2%
Fund FamilyFederated HermesINDEXIQ ETF TRUST
CategoryTax PreferredEquity
InceptionDec 20, 2002Jul 22, 2015

FMN vs HFXI Performance

Federated Hermes Premier Municipal Income Fund (FMN) is a ETF from Federated Hermes and NYLI FTSE International Equity Currency Neutral ETF (HFXI) is a ETF from INDEXIQ ETF TRUST. Over the past year FMN returned +8.80% while HFXI returned +31.13%. Year to date, FMN is up 2.95% versus a gain of 17.72% for HFXI.

Over three years, FMN compounded at +6.66% per year against +20.98% for HFXI; over five years the annualized figures are -2.53% and +12.28% respectively. Across the full 11-year window we track, HFXI has the edge at +7.98% annualized vs -0.23%. 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 13.9% for HFXI. 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 -34.2% for HFXI. 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 0.54. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

FMN charges 0.75% per year while HFXI charges 0.20%. On a $10,000 position that is $75 vs $20 annually, a gap of $55 per year that compounds over a long holding period. On income, FMN currently yields 4.29% against 3.96% for HFXI.

Holdings Overlap

0.0%overlap

FMN and HFXI share 0 holdings out of 844 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 HFXI?

FMN has an expense ratio of 0.75% while HFXI charges 0.20%. HFXI is the cheaper option. On a $10,000 investment, that is $55 per year of difference.

Which performed better, FMN or HFXI?

Over the past year FMN returned +8.80% vs +31.13% for HFXI, so HFXI leads on 1-year performance. Over the longest common window we track (11 years), FMN annualized -0.23% vs +7.98% for HFXI. Past performance does not guarantee future results.

Which is riskier, FMN or HFXI?

FMN has been the more volatile fund at 14.7% annualized versus 13.9% for HFXI. Worst drawdown: FMN -53.4% vs HFXI -34.2%.

Should I hold both FMN and HFXI?

FMN and HFXI have a monthly-return correlation of 0.54, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between FMN and HFXI?

FMN and HFXI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 844 unique securities.

Which pays a higher dividend, FMN or HFXI?

FMN yields 4.29% while HFXI yields 3.96%, so FMN currently pays the higher dividend yield.

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