FMN vs VXUS
FMN vs VXUS
Federated Hermes Premier Municipal Income Fund vs Vanguard Total International Stock ETF
Quick Verdict
VXUS has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 7861 holdings.
Side-by-Side Comparison
| Metric | FMN | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.75% | 0.05% | |
| AUM | $16M | $156.5B | |
| Dividend Yield | 4.29% | 2.60% | |
| Holdings | 150 | 8,747 | |
| YTD Return | +3.51% | +14.57% | |
| 1Y Return | +9.90% | +27.82% | |
| 3Y Return (annualized) | +7.05% | +19.27% | |
| 5Y Return (annualized) | -2.30% | +9.28% | |
| Volatility (annualized) | 14.7% | 15.1% | |
| Max Drawdown | -53.4% | -39.9% | |
| Fund Family | Federated Hermes | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Dec 20, 2002 | Jan 26, 2011 |
FMN vs VXUS Performance
Federated Hermes Premier Municipal Income Fund (FMN) is a ETF from Federated Hermes and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year FMN returned +9.90% while VXUS returned +27.82%. Year to date, FMN is up 3.51% versus a gain of 14.57% for VXUS.
Over three years, FMN compounded at +7.05% per year against +19.27% for VXUS; over five years the annualized figures are -2.30% and +9.28% respectively. Across the full 16-year window we track, VXUS has the edge at +4.86% annualized vs -0.21%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VXUS has been the more volatile fund, with annualized monthly volatility of 15.1% 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 -39.9% for VXUS. 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 0.43. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FMN charges 0.75% per year while VXUS charges 0.05%. On a $10,000 position that is $75 vs $5 annually, a gap of $70 per year that compounds over a long holding period. On income, FMN currently yields 4.29% against 2.60% for VXUS.
Holdings Overlap
FMN and VXUS share 0 holdings out of 7946 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 VXUS?
FMN has an expense ratio of 0.75% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $70 per year of difference.
Which performed better, FMN or VXUS?
Over the past year FMN returned +9.90% vs +27.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), FMN annualized -0.21% vs +4.86% for VXUS. Past performance does not guarantee future results.
Which is riskier, FMN or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 14.7% for FMN. Worst drawdown: FMN -53.4% vs VXUS -39.9%.
Should I hold both FMN and VXUS?
FMN and VXUS have a monthly-return correlation of 0.43, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FMN and VXUS?
FMN and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 7946 unique securities.
Which pays a higher dividend, FMN or VXUS?
FMN yields 4.29% while VXUS yields 2.60%, so FMN currently pays the higher dividend yield.
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