FMN vs TYO
Federated Hermes Premier Municipal Income Fund vs Direxion Daily 7-10 Year Treasury Bear 3X ETF
Quick Verdict
FMN has a lower expense ratio. TYO delivered stronger 1-year returns. FMN offers more diversification with 85 holdings.
Side-by-Side Comparison
| Metric | FMN | TYO | Winner |
|---|---|---|---|
| Expense Ratio | 0.75% | 1.00% | |
| AUM | $16M | $12M | |
| Dividend Yield | 4.29% | 2.62% | |
| Holdings | 150 | 6 | |
| YTD Return | +3.14% | +12.13% | |
| 1Y Return | +8.79% | +11.94% | |
| 3Y Return (annualized) | +6.65% | +5.20% | |
| 5Y Return (annualized) | -2.48% | +14.80% | |
| Volatility (annualized) | 14.7% | 19.3% | |
| Max Drawdown | -53.4% | -90.4% | |
| Fund Family | Federated Hermes | Direxion Shares ETF Trust | |
| Category | Tax Preferred | Alternative | |
| Inception | Dec 20, 2002 | Apr 16, 2009 |
FMN vs TYO Performance
Federated Hermes Premier Municipal Income Fund (FMN) is a ETF from Federated Hermes and Direxion Daily 7-10 Year Treasury Bear 3X ETF (TYO) is a ETF from Direxion Shares ETF Trust. Over the past year FMN returned +8.79% while TYO returned +11.94%. Year to date, FMN is up 3.14% versus a gain of 12.13% for TYO.
Over three years, FMN compounded at +6.65% per year against +5.20% for TYO; over five years the annualized figures are -2.48% and +14.80% respectively. Across the full 17-year window we track, FMN has the edge at -0.22% annualized vs -7.19%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TYO has been the more volatile fund, with annualized monthly volatility of 19.3% 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 -90.4% for TYO. 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 -0.48. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FMN charges 0.75% per year while TYO charges 1.00%. On a $10,000 position that is $75 vs $100 annually, a gap of $25 per year that compounds over a long holding period. On income, FMN currently yields 4.29% against 2.62% for TYO.
Holdings Overlap
FMN and TYO share 0 holdings out of 88 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 TYO?
FMN has an expense ratio of 0.75% while TYO charges 1.00%. FMN is the cheaper option. On a $10,000 investment, that is $25 per year of difference.
Which performed better, FMN or TYO?
Over the past year FMN returned +8.79% vs +11.94% for TYO, so TYO leads on 1-year performance. Over the longest common window we track (17 years), FMN annualized -0.22% vs -7.19% for TYO. Past performance does not guarantee future results.
Which is riskier, FMN or TYO?
TYO has been the more volatile fund at 19.3% annualized versus 14.7% for FMN. Worst drawdown: FMN -53.4% vs TYO -90.4%.
Should I hold both FMN and TYO?
FMN and TYO have a monthly-return correlation of -0.48, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FMN and TYO?
FMN and TYO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 88 unique securities.
Which pays a higher dividend, FMN or TYO?
FMN yields 4.29% while TYO yields 2.62%, so FMN currently pays the higher dividend yield.
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