FMN vs IVV
Federated Hermes Premier Municipal Income Fund vs iShares Core S&P 500 ETF
Quick Verdict
IVV has a lower expense ratio. IVV delivered stronger 1-year returns. IVV offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | FMN | IVV | Winner |
|---|---|---|---|
| Expense Ratio | 0.75% | 0.03% | |
| AUM | $16M | $865.2B | |
| Dividend Yield | 4.29% | 1.09% | |
| Holdings | 150 | 508 | |
| YTD Return | +3.05% | +13.43% | |
| 1Y Return | +8.69% | +22.61% | |
| 3Y Return (annualized) | +6.70% | +21.47% | |
| 5Y Return (annualized) | -2.57% | +13.26% | |
| Volatility (annualized) | 14.7% | 15.1% | |
| Max Drawdown | -53.4% | -56.5% | |
| Fund Family | Federated Hermes | iShares by BlackRock (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Dec 20, 2002 | May 15, 2000 |
FMN vs IVV Performance
Federated Hermes Premier Municipal Income Fund (FMN) is a ETF from Federated Hermes and iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US). Over the past year FMN returned +8.69% while IVV returned +22.61%. Year to date, FMN is up 3.05% versus a gain of 13.43% for IVV.
Over three years, FMN compounded at +6.70% per year against +21.47% for IVV; over five years the annualized figures are -2.57% and +13.26% respectively. Across the full 24-year window we track, IVV has the edge at +7.03% annualized vs -0.23%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IVV has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 14.7% for FMN. 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 -56.5% for IVV. 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 0.32. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FMN charges 0.75% per year while IVV charges 0.03%. On a $10,000 position that is $75 vs $3 annually, a gap of $72 per year that compounds over a long holding period. On income, FMN currently yields 4.29% against 1.09% for IVV.
Holdings Overlap
FMN and IVV share 0 holdings out of 590 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 IVV?
FMN has an expense ratio of 0.75% while IVV charges 0.03%. IVV is the cheaper option. On a $10,000 investment, that is $72 per year of difference.
Which performed better, FMN or IVV?
Over the past year FMN returned +8.69% vs +22.61% for IVV, so IVV leads on 1-year performance. Over the longest common window we track (24 years), FMN annualized -0.23% vs +7.03% for IVV. Past performance does not guarantee future results.
Which is riskier, FMN or IVV?
IVV has been the more volatile fund at 15.1% annualized versus 14.7% for FMN. Worst drawdown: FMN -53.4% vs IVV -56.5%.
Should I hold both FMN and IVV?
FMN and IVV have a monthly-return correlation of 0.32, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FMN and IVV?
FMN and IVV share 0 common holdings with a 0.0% weight overlap. Combined, they hold 590 unique securities.
Which pays a higher dividend, FMN or IVV?
FMN yields 4.29% while IVV yields 1.09%, so FMN currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.