FMN vs VGI
FMN vs VGI
Federated Hermes Premier Municipal Income Fund vs Virtus Global Multi-Sector Income Fund
Quick Verdict
FMN has a lower expense ratio. FMN delivered stronger 1-year returns. VGI offers more diversification with 434 holdings.
Side-by-Side Comparison
| Metric | FMN | VGI | Winner |
|---|---|---|---|
| Expense Ratio | 0.75% | 1.74% | |
| AUM | $16M | $88M | |
| Dividend Yield | 4.29% | 11.98% | |
| Holdings | 150 | 646 | |
| YTD Return | +3.51% | +1.47% | |
| 1Y Return | +9.90% | +5.12% | |
| 3Y Return (annualized) | +7.05% | +11.60% | |
| 5Y Return (annualized) | -2.30% | +2.10% | |
| Volatility (annualized) | 14.7% | 14.2% | |
| Max Drawdown | -53.4% | -63.3% | |
| Fund Family | Federated Hermes | Virtus Investment Partners | |
| Category | Tax Preferred | Fixed Income | |
| Inception | Dec 20, 2002 | Feb 23, 2012 |
FMN vs VGI Performance
Federated Hermes Premier Municipal Income Fund (FMN) is a ETF from Federated Hermes and Virtus Global Multi-Sector Income Fund (VGI) is a ETF from Virtus Investment Partners. Over the past year FMN returned +9.90% while VGI returned +5.12%. Year to date, FMN is up 3.51% versus a gain of 1.47% for VGI.
Over three years, FMN compounded at +7.05% per year against +11.60% for VGI; over five years the annualized figures are -2.30% and +2.10% respectively. Across the full 15-year window we track, FMN has the edge at -0.21% annualized vs -2.38%. 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 14.2% for VGI. 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 -63.3% for VGI. 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 0.56. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FMN charges 0.75% per year while VGI charges 1.74%. On a $10,000 position that is $75 vs $174 annually, a gap of $99 per year that compounds over a long holding period. On income, FMN currently yields 4.29% against 11.98% for VGI.
Holdings Overlap
FMN and VGI share 0 holdings out of 519 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 VGI?
FMN has an expense ratio of 0.75% while VGI charges 1.74%. FMN is the cheaper option. On a $10,000 investment, that is $99 per year of difference.
Which performed better, FMN or VGI?
Over the past year FMN returned +9.90% vs +5.12% for VGI, so FMN leads on 1-year performance. Over the longest common window we track (15 years), FMN annualized -0.21% vs -2.38% for VGI. Past performance does not guarantee future results.
Which is riskier, FMN or VGI?
FMN has been the more volatile fund at 14.7% annualized versus 14.2% for VGI. Worst drawdown: FMN -53.4% vs VGI -63.3%.
Should I hold both FMN and VGI?
FMN and VGI have a monthly-return correlation of 0.56, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FMN and VGI?
FMN and VGI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 519 unique securities.
Which pays a higher dividend, FMN or VGI?
FMN yields 4.29% while VGI yields 11.98%, so VGI currently pays the higher dividend yield.
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