FMN vs INCE

Quick Verdict

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

Lower Fees: INCEHigher Returns: INCEMore Diversified: FMN

Side-by-Side Comparison

MetricFMNINCEWinner
Expense Ratio0.75%0.29%
AUM$16M$132M
Dividend Yield4.29%4.82%
Holdings15082
YTD Return+3.51%+15.94%
1Y Return+9.90%+26.30%
3Y Return (annualized)+7.05%+16.63%
5Y Return (annualized)-2.30%+10.93%
Volatility (annualized)14.7%13.8%
Max Drawdown-53.4%-34.1%
Fund FamilyFederated HermesFranklin Templeton Investments (US)
CategoryTax PreferredEquity
InceptionDec 20, 2002Sep 20, 2016

FMN vs INCE Performance

Federated Hermes Premier Municipal Income Fund (FMN) is a ETF from Federated Hermes and Franklin Income Equity Focus ETF (INCE) is a ETF from Franklin Templeton Investments (US). Over the past year FMN returned +9.90% while INCE returned +26.30%. Year to date, FMN is up 3.51% versus a gain of 15.94% for INCE.

Over three years, FMN compounded at +7.05% per year against +16.63% for INCE; over five years the annualized figures are -2.30% and +10.93% respectively. Across the full 10-year window we track, INCE has the edge at +12.53% 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 13.8% for INCE. 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 -34.1% for INCE. 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 0.53. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

FMN charges 0.75% per year while INCE charges 0.29%. On a $10,000 position that is $75 vs $29 annually, a gap of $46 per year that compounds over a long holding period. On income, FMN currently yields 4.29% against 4.82% for INCE.

Holdings Overlap

0.0%overlap

FMN and INCE share 0 holdings out of 132 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 INCE?

FMN has an expense ratio of 0.75% while INCE charges 0.29%. INCE is the cheaper option. On a $10,000 investment, that is $46 per year of difference.

Which performed better, FMN or INCE?

Over the past year FMN returned +9.90% vs +26.30% for INCE, so INCE leads on 1-year performance. Over the longest common window we track (10 years), FMN annualized -0.21% vs +12.53% for INCE. Past performance does not guarantee future results.

Which is riskier, FMN or INCE?

FMN has been the more volatile fund at 14.7% annualized versus 13.8% for INCE. Worst drawdown: FMN -53.4% vs INCE -34.1%.

Should I hold both FMN and INCE?

FMN and INCE have a monthly-return correlation of 0.53, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between FMN and INCE?

FMN and INCE share 0 common holdings with a 0.0% weight overlap. Combined, they hold 132 unique securities.

Which pays a higher dividend, FMN or INCE?

FMN yields 4.29% while INCE yields 4.82%, so INCE currently pays the higher dividend yield.

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