FMN vs SOXL
Federated Hermes Premier Municipal Income Fund vs Direxion Daily Semiconductor Bull 3X ETF
Quick Verdict
SOXL delivered stronger 1-year returns. FMN offers more diversification with 150 holdings.
Side-by-Side Comparison
| Metric | FMN | SOXL | Winner |
|---|---|---|---|
| Expense Ratio | 0.75% | 0.75% | |
| AUM | $16M | $24.3B | |
| Dividend Yield | 4.43% | 0.01% | |
| Holdings | 150 | 43 | |
| YTD Return | +2.77% | +155.59% | |
| 1Y Return | +9.06% | +360.14% | |
| 3Y Return (annualized) | +7.46% | +77.42% | |
| 5Y Return (annualized) | -2.90% | +25.48% | |
| Volatility (annualized) | 14.7% | 87.7% | |
| Max Drawdown | -53.4% | -90.5% | |
| Fund Family | Federated Hermes | Direxion Shares ETF Trust | |
| Category | Tax Preferred | Alternative | |
| Inception | Dec 20, 2002 | Mar 11, 2010 |
FMN vs SOXL Performance
Federated Hermes Premier Municipal Income Fund (FMN) is a ETF from Federated Hermes and Direxion Daily Semiconductor Bull 3X ETF (SOXL) is a ETF from Direxion Shares ETF Trust. Over the past year FMN returned +9.06% while SOXL returned +360.14%. Year to date, FMN is up 2.77% versus a gain of 155.59% for SOXL.
Over three years, FMN compounded at +7.46% per year against +77.42% for SOXL; over five years the annualized figures are -2.90% and +25.48% respectively. Across the full 16-year window we track, SOXL has the edge at +37.45% annualized vs -0.24%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SOXL has been the more volatile fund, with annualized monthly volatility of 87.7% 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 -90.5% for SOXL. 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 0.36. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FMN charges 0.75% per year while SOXL charges 0.75%. On a $10,000 position that is $75 vs $75 annually. On income, FMN currently yields 4.43% against 0.01% for SOXL.
Holdings Overlap
FMN and SOXL share 0 holdings out of 120 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 SOXL?
FMN has an expense ratio of 0.75% while SOXL charges 0.75%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, FMN or SOXL?
Over the past year FMN returned +9.06% vs +360.14% for SOXL, so SOXL leads on 1-year performance. Over the longest common window we track (16 years), FMN annualized -0.24% vs +37.45% for SOXL. Past performance does not guarantee future results.
Which is riskier, FMN or SOXL?
SOXL has been the more volatile fund at 87.7% annualized versus 14.7% for FMN. Worst drawdown: FMN -53.4% vs SOXL -90.5%.
Should I hold both FMN and SOXL?
FMN and SOXL have a monthly-return correlation of 0.36, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FMN and SOXL?
FMN and SOXL share 0 common holdings with a 0.0% weight overlap. Combined, they hold 120 unique securities.
Which pays a higher dividend, FMN or SOXL?
FMN yields 4.43% while SOXL yields 0.01%, so FMN currently pays the higher dividend yield.
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