Quick Verdict

FTCB has a lower expense ratio. NMI delivered stronger 1-year returns. FTCB offers more diversification with 331 holdings.

Lower Fees: FTCBHigher Returns: NMIMore Diversified: FTCB

Side-by-Side Comparison

MetricFTCBNMIWinner
Expense Ratio0.56%0.73%
AUM$2.5B-
Dividend Yield5.24%4.57%
Holdings721220
YTD Return+0.12%+11.08%
1Y Return+2.43%+14.95%
3Y Return (annualized)-+9.79%
5Y Return (annualized)-+2.16%
Volatility (annualized)5.1%11.0%
Max Drawdown-5.0%-34.4%
Fund FamilyFirst Trust Portfolios (US)Nuveen
CategoryFixed IncomeTax Preferred
InceptionNov 7, 2023Apr 20, 1988

FTCB vs NMI Performance

First Trust Core Investment Grade ETF (FTCB) is a ETF from First Trust Portfolios (US) and Nuveen Municipal Income Fund Inc. (NMI) is a ETF from Nuveen. Over the past year FTCB returned +2.43% while NMI returned +14.95%. Year to date, FTCB is up 0.12% versus a gain of 11.08% for NMI.

Risk: Volatility and Drawdowns

NMI has been the more volatile fund, with annualized monthly volatility of 11.0% compared with 5.1% for FTCB. 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 -5.0% for FTCB 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 0.42. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

FTCB charges 0.56% per year while NMI charges 0.73%. On a $10,000 position that is $56 vs $73 annually, a gap of $17 per year that compounds over a long holding period. On income, FTCB currently yields 5.24% against 4.57% for NMI.

Holdings Overlap

0.0%overlap

FTCB and NMI share 0 holdings out of 426 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, FTCB or NMI?

FTCB has an expense ratio of 0.56% while NMI charges 0.73%. FTCB is the cheaper option. On a $10,000 investment, that is $17 per year of difference.

Which performed better, FTCB or NMI?

Over the past year FTCB returned +2.43% vs +14.95% for NMI, so NMI leads on 1-year performance. Over the longest common window we track (3 years), FTCB annualized +5.77% vs +0.38% for NMI. Past performance does not guarantee future results.

Which is riskier, FTCB or NMI?

NMI has been the more volatile fund at 11.0% annualized versus 5.1% for FTCB. Worst drawdown: FTCB -5.0% vs NMI -34.4%.

Should I hold both FTCB and NMI?

FTCB and NMI have a monthly-return correlation of 0.42, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between FTCB and NMI?

FTCB and NMI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 426 unique securities.

Which pays a higher dividend, FTCB or NMI?

FTCB yields 5.24% while NMI yields 4.57%, so FTCB currently pays the higher dividend yield.

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