FMN vs IG
FMN vs IG
Federated Hermes Premier Municipal Income Fund vs Principal Investment Grade Corporate ETF
Quick Verdict
IG has a lower expense ratio. FMN delivered stronger 1-year returns. IG offers more diversification with 145 holdings.
Side-by-Side Comparison
| Metric | FMN | IG | Winner |
|---|---|---|---|
| Expense Ratio | 0.75% | 0.19% | |
| AUM | $16M | $198M | |
| Dividend Yield | 4.29% | 5.07% | |
| Holdings | 150 | 248 | |
| YTD Return | +3.51% | -1.54% | |
| 1Y Return | +9.90% | +0.84% | |
| 3Y Return (annualized) | +7.05% | +4.56% | |
| 5Y Return (annualized) | -2.30% | -0.69% | |
| Volatility (annualized) | 14.7% | 8.0% | |
| Max Drawdown | -53.4% | -23.8% | |
| Fund Family | Federated Hermes | Principal Funds | |
| Category | Tax Preferred | Fixed Income | |
| Inception | Dec 20, 2002 | Apr 18, 2018 |
FMN vs IG Performance
Federated Hermes Premier Municipal Income Fund (FMN) is a ETF from Federated Hermes and Principal Investment Grade Corporate ETF (IG) is a ETF from Principal Funds. Over the past year FMN returned +9.90% while IG returned +0.84%. Year to date, FMN is up 3.51% versus a loss of 1.54% for IG.
Over three years, FMN compounded at +7.05% per year against +4.56% for IG; over five years the annualized figures are -2.30% and -0.69% respectively. Across the full 8-year window we track, IG has the edge at +0.59% 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 8.0% for IG. 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 -23.8% for IG. 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 0.76. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FMN charges 0.75% per year while IG charges 0.19%. On a $10,000 position that is $75 vs $19 annually, a gap of $56 per year that compounds over a long holding period. On income, FMN currently yields 4.29% against 5.07% for IG.
Holdings Overlap
FMN and IG share 0 holdings out of 230 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 IG?
FMN has an expense ratio of 0.75% while IG charges 0.19%. IG is the cheaper option. On a $10,000 investment, that is $56 per year of difference.
Which performed better, FMN or IG?
Over the past year FMN returned +9.90% vs +0.84% for IG, so FMN leads on 1-year performance. Over the longest common window we track (8 years), FMN annualized -0.21% vs +0.59% for IG. Past performance does not guarantee future results.
Which is riskier, FMN or IG?
FMN has been the more volatile fund at 14.7% annualized versus 8.0% for IG. Worst drawdown: FMN -53.4% vs IG -23.8%.
Should I hold both FMN and IG?
FMN and IG have a monthly-return correlation of 0.76, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FMN and IG?
FMN and IG share 0 common holdings with a 0.0% weight overlap. Combined, they hold 230 unique securities.
Which pays a higher dividend, FMN or IG?
FMN yields 4.29% while IG yields 5.07%, so IG currently pays the higher dividend yield.
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