FQAL vs NMI
Fidelity Quality Factor ETF vs Nuveen Municipal Income Fund Inc.
Quick Verdict
FQAL has a lower expense ratio. FQAL delivered stronger 1-year returns. NMI offers more diversification with 220 holdings.
Side-by-Side Comparison
| Metric | FQAL | NMI | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.73% | |
| AUM | $1.4B | - | |
| Dividend Yield | 1.15% | 4.65% | |
| Holdings | 130 | 220 | |
| YTD Return | +12.00% | +8.93% | |
| 1Y Return | +18.57% | +13.39% | |
| 3Y Return (annualized) | +20.35% | +8.56% | |
| 5Y Return (annualized) | +11.63% | +1.80% | |
| Volatility (annualized) | 15.0% | 11.0% | |
| Max Drawdown | -34.1% | -34.4% | |
| Fund Family | Fidelity Investments (US) | Nuveen | |
| Category | Equity | Tax Preferred | |
| Inception | Sep 12, 2016 | Apr 20, 1988 |
FQAL vs NMI Performance
Fidelity Quality Factor ETF (FQAL) is a ETF from Fidelity Investments (US) and Nuveen Municipal Income Fund Inc. (NMI) is a ETF from Nuveen. Over the past year FQAL returned +18.57% while NMI returned +13.39%. Year to date, FQAL is up 12.00% versus a gain of 8.93% for NMI.
Over three years, FQAL compounded at +20.35% per year against +8.56% for NMI; over five years the annualized figures are +11.63% and +1.80% respectively. Across the full 10-year window we track, FQAL has the edge at +13.71% annualized vs +0.31%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FQAL has been the more volatile fund, with annualized monthly volatility of 15.0% compared with 11.0% for NMI. 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 -34.1% for FQAL and -34.4% for NMI. 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 0.24. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FQAL charges 0.15% per year while NMI charges 0.73%. On a $10,000 position that is $15 vs $73 annually, a gap of $58 per year that compounds over a long holding period. On income, FQAL currently yields 1.15% against 4.65% for NMI.
Holdings Overlap
FQAL and NMI share 0 holdings out of 220 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, FQAL or NMI?
FQAL has an expense ratio of 0.15% while NMI charges 0.73%. FQAL is the cheaper option. On a $10,000 investment, that is $58 per year of difference.
Which performed better, FQAL or NMI?
Over the past year FQAL returned +18.57% vs +13.39% for NMI, so FQAL leads on 1-year performance. Over the longest common window we track (10 years), FQAL annualized +13.71% vs +0.31% for NMI. Past performance does not guarantee future results.
Which is riskier, FQAL or NMI?
FQAL has been the more volatile fund at 15.0% annualized versus 11.0% for NMI. Worst drawdown: FQAL -34.1% vs NMI -34.4%.
Should I hold both FQAL and NMI?
FQAL and NMI have a monthly-return correlation of 0.24, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FQAL and NMI?
FQAL and NMI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 220 unique securities.
Which pays a higher dividend, FQAL or NMI?
FQAL yields 1.15% while NMI yields 4.65%, so NMI currently pays the higher dividend yield.
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