FMN vs VOO
Federated Hermes Premier Municipal Income Fund vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | FMN | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.75% | 0.03% | |
| AUM | $16M | $979.0B | |
| Dividend Yield | 4.29% | 1.09% | |
| Holdings | 150 | 509 | |
| YTD Return | +3.14% | +13.79% | |
| 1Y Return | +8.79% | +23.01% | |
| 3Y Return (annualized) | +6.65% | +21.78% | |
| 5Y Return (annualized) | -2.48% | +13.39% | |
| Volatility (annualized) | 14.7% | 14.1% | |
| Max Drawdown | -53.4% | -34.3% | |
| Fund Family | Federated Hermes | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Dec 20, 2002 | Sep 7, 2010 |
FMN vs VOO Performance
Federated Hermes Premier Municipal Income Fund (FMN) is a ETF from Federated Hermes and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year FMN returned +8.79% while VOO returned +23.01%. Year to date, FMN is up 3.14% versus a gain of 13.79% for VOO.
Over three years, FMN compounded at +6.65% per year against +21.78% for VOO; over five years the annualized figures are -2.48% and +13.39% respectively. Across the full 16-year window we track, VOO has the edge at +13.57% annualized vs -0.22%. 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 14.1% for VOO. 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 -34.3% for VOO. 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 VOO charges 0.03%. On a $10,000 position that is $75 vs $3 annually, a gap of $72 per year that compounds over a long holding period. On income, FMN currently yields 4.29% against 1.09% for VOO.
Holdings Overlap
FMN and VOO share 0 holdings out of 590 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 VOO?
FMN has an expense ratio of 0.75% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $72 per year of difference.
Which performed better, FMN or VOO?
Over the past year FMN returned +8.79% vs +23.01% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), FMN annualized -0.22% vs +13.57% for VOO. Past performance does not guarantee future results.
Which is riskier, FMN or VOO?
FMN has been the more volatile fund at 14.7% annualized versus 14.1% for VOO. Worst drawdown: FMN -53.4% vs VOO -34.3%.
Should I hold both FMN and VOO?
FMN and VOO 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 VOO?
FMN and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 590 unique securities.
Which pays a higher dividend, FMN or VOO?
FMN yields 4.29% while VOO yields 1.09%, so FMN currently pays the higher dividend yield.
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