FMN vs NMI
FMN vs NMI
Federated Hermes Premier Municipal Income Fund vs Nuveen Municipal Income Fund Inc.
Quick Verdict
NMI has a lower expense ratio. NMI delivered stronger 1-year returns. NMI offers more diversification with 95 holdings.
Side-by-Side Comparison
| Metric | FMN | NMI | Winner |
|---|---|---|---|
| Expense Ratio | 0.75% | 0.73% | |
| AUM | $16M | - | |
| Dividend Yield | 4.29% | 4.57% | |
| Holdings | 150 | 220 | |
| YTD Return | +3.51% | +11.08% | |
| 1Y Return | +9.90% | +14.95% | |
| 3Y Return (annualized) | +7.05% | +9.79% | |
| 5Y Return (annualized) | -2.30% | +2.16% | |
| Volatility (annualized) | 14.7% | 11.0% | |
| Max Drawdown | -53.4% | -34.4% | |
| Fund Family | Federated Hermes | Nuveen | |
| Category | Tax Preferred | Tax Preferred | |
| Inception | Dec 20, 2002 | Apr 20, 1988 |
FMN vs NMI Performance
Federated Hermes Premier Municipal Income Fund (FMN) is a ETF from Federated Hermes and Nuveen Municipal Income Fund Inc. (NMI) is a ETF from Nuveen. Over the past year FMN returned +9.90% while NMI returned +14.95%. Year to date, FMN is up 3.51% versus a gain of 11.08% for NMI.
Over three years, FMN compounded at +7.05% per year against +9.79% for NMI; over five years the annualized figures are -2.30% and +2.16% respectively. Across the full 24-year window we track, NMI has the edge at +0.38% 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 11.0% for NMI. 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 -34.4% for NMI. 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 0.59. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FMN charges 0.75% per year while NMI charges 0.73%. On a $10,000 position that is $75 vs $73 annually, a gap of $2 per year that compounds over a long holding period. On income, FMN currently yields 4.29% against 4.57% for NMI.
Holdings Overlap
FMN and NMI share 8 holdings out of 172 unique holdings combined, representing a 3.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in FMN | Weight in NMI | Difference |
|---|---|---|---|
| PR PRCGEN 5 07/01/20 | 3.45% | 0.84% | 2.61% |
| IL ILS 5.5 10/01/204 | 2.16% | 0.94% | 1.22% |
| PR PRCGEN 4.75 07/01 | 1.96% | 0.42% | 1.54% |
| NY NYCDEV 5 11/15/20 | Pro | Pro | Pro |
| NY MTATRN 5.25 11/15 | Pro | Pro | Pro |
| VA VBHDEV 7 09/01/20 | Pro | Pro | Pro |
| FL LKRGEN 6.12 05/01 | Pro | Pro | Pro |
| VA JAMDEV 6.88 12/01 | Pro | Pro | Pro |
See all 8 holdings FMN shares with NMI Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, FMN or NMI?
FMN has an expense ratio of 0.75% while NMI charges 0.73%. NMI is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, FMN or NMI?
Over the past year FMN returned +9.90% vs +14.95% for NMI, so NMI leads on 1-year performance. Over the longest common window we track (24 years), FMN annualized -0.21% vs +0.38% for NMI. Past performance does not guarantee future results.
Which is riskier, FMN or NMI?
FMN has been the more volatile fund at 14.7% annualized versus 11.0% for NMI. Worst drawdown: FMN -53.4% vs NMI -34.4%.
Should I hold both FMN and NMI?
FMN and NMI have a monthly-return correlation of 0.59, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FMN and NMI?
FMN and NMI share 8 common holdings with a 3.8% weight overlap. Combined, they hold 172 unique securities.
Which pays a higher dividend, FMN or NMI?
FMN yields 4.29% while NMI yields 4.57%, so NMI 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.