FMN vs PHDG
Federated Hermes Premier Municipal Income Fund vs Invesco S&P 500 Downside Hedged ETF
Quick Verdict
PHDG has a lower expense ratio. PHDG delivered stronger 1-year returns. PHDG offers more diversification with 494 holdings.
Side-by-Side Comparison
| Metric | FMN | PHDG | Winner |
|---|---|---|---|
| Expense Ratio | 0.75% | 0.39% | |
| AUM | $16M | $61M | |
| Dividend Yield | 4.29% | 1.68% | |
| Holdings | 150 | 514 | |
| YTD Return | +3.51% | +13.02% | |
| 1Y Return | +9.90% | +18.49% | |
| 3Y Return (annualized) | +7.05% | +9.60% | |
| 5Y Return (annualized) | -2.30% | +4.75% | |
| Volatility (annualized) | 14.7% | 9.9% | |
| Max Drawdown | -53.4% | -23.6% | |
| Fund Family | Federated Hermes | Invesco (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Dec 20, 2002 | Dec 5, 2012 |
FMN vs PHDG Performance
Federated Hermes Premier Municipal Income Fund (FMN) is a ETF from Federated Hermes and Invesco S&P 500 Downside Hedged ETF (PHDG) is a ETF from Invesco (US). Over the past year FMN returned +9.90% while PHDG returned +18.49%. Year to date, FMN is up 3.51% versus a gain of 13.02% for PHDG.
Over three years, FMN compounded at +7.05% per year against +9.60% for PHDG; over five years the annualized figures are -2.30% and +4.75% respectively. Across the full 14-year window we track, PHDG has the edge at +4.45% 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 9.9% for PHDG. 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 -23.6% for PHDG. 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 0.24. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FMN charges 0.75% per year while PHDG charges 0.39%. On a $10,000 position that is $75 vs $39 annually, a gap of $36 per year that compounds over a long holding period. On income, FMN currently yields 4.29% against 1.68% for PHDG.
Holdings Overlap
FMN and PHDG share 0 holdings out of 579 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 PHDG?
FMN has an expense ratio of 0.75% while PHDG charges 0.39%. PHDG is the cheaper option. On a $10,000 investment, that is $36 per year of difference.
Which performed better, FMN or PHDG?
Over the past year FMN returned +9.90% vs +18.49% for PHDG, so PHDG leads on 1-year performance. Over the longest common window we track (14 years), FMN annualized -0.21% vs +4.45% for PHDG. Past performance does not guarantee future results.
Which is riskier, FMN or PHDG?
FMN has been the more volatile fund at 14.7% annualized versus 9.9% for PHDG. Worst drawdown: FMN -53.4% vs PHDG -23.6%.
Should I hold both FMN and PHDG?
FMN and PHDG have a monthly-return correlation of 0.24, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FMN and PHDG?
FMN and PHDG share 0 common holdings with a 0.0% weight overlap. Combined, they hold 579 unique securities.
Which pays a higher dividend, FMN or PHDG?
FMN yields 4.29% while PHDG yields 1.68%, so FMN currently pays the higher dividend yield.
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