FMN vs VGI

Quick Verdict

FMN has a lower expense ratio. FMN delivered stronger 1-year returns. VGI offers more diversification with 434 holdings.

Lower Fees: FMNHigher Returns: FMNMore Diversified: VGI

Side-by-Side Comparison

MetricFMNVGIWinner
Expense Ratio0.75%1.74%
AUM$16M$88M
Dividend Yield4.29%11.98%
Holdings150646
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 FamilyFederated HermesVirtus Investment Partners
CategoryTax PreferredFixed Income
InceptionDec 20, 2002Feb 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

0.0%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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