FMN vs VTI
Federated Hermes Premier Municipal Income Fund vs Vanguard Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.
Side-by-Side Comparison
| Metric | FMN | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.75% | 0.03% | |
| AUM | $16M | $663.5B | |
| Dividend Yield | 4.29% | 1.07% | |
| Holdings | 150 | 3,543 | |
| YTD Return | +3.14% | +14.16% | |
| 1Y Return | +8.79% | +23.62% | |
| 3Y Return (annualized) | +6.65% | +21.43% | |
| 5Y Return (annualized) | -2.48% | +12.33% | |
| Volatility (annualized) | 14.7% | 15.3% | |
| Max Drawdown | -53.4% | -56.6% | |
| Fund Family | Federated Hermes | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Dec 20, 2002 | May 24, 2001 |
FMN vs VTI Performance
Federated Hermes Premier Municipal Income Fund (FMN) is a ETF from Federated Hermes and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year FMN returned +8.79% while VTI returned +23.62%. Year to date, FMN is up 3.14% versus a gain of 14.16% for VTI.
Over three years, FMN compounded at +6.65% per year against +21.43% for VTI; over five years the annualized figures are -2.48% and +12.33% respectively. Across the full 24-year window we track, VTI has the edge at +8.14% annualized vs -0.22%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.3% 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 -56.6% for VTI. 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 0.32. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FMN charges 0.75% per year while VTI 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 1.07% for VTI.
Holdings Overlap
FMN and VTI share 0 holdings out of 2868 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 VTI?
FMN has an expense ratio of 0.75% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $72 per year of difference.
Which performed better, FMN or VTI?
Over the past year FMN returned +8.79% vs +23.62% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (24 years), FMN annualized -0.22% vs +8.14% for VTI. Past performance does not guarantee future results.
Which is riskier, FMN or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 14.7% for FMN. Worst drawdown: FMN -53.4% vs VTI -56.6%.
Should I hold both FMN and VTI?
FMN and VTI have a monthly-return correlation of 0.32, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FMN and VTI?
FMN and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2868 unique securities.
Which pays a higher dividend, FMN or VTI?
FMN yields 4.29% while VTI yields 1.07%, so FMN currently pays the higher dividend yield.
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