IG vs NMI
Principal Investment Grade Corporate ETF vs Nuveen Municipal Income Fund Inc.
Quick Verdict
IG has a lower expense ratio. NMI delivered stronger 1-year returns. IG offers more diversification with 145 holdings.
Side-by-Side Comparison
| Metric | IG | NMI | Winner |
|---|---|---|---|
| Expense Ratio | 0.19% | 0.73% | |
| AUM | $198M | - | |
| Dividend Yield | 5.07% | 4.57% | |
| Holdings | 248 | 220 | |
| YTD Return | -1.54% | +11.08% | |
| 1Y Return | +0.84% | +14.95% | |
| 3Y Return (annualized) | +4.56% | +9.79% | |
| 5Y Return (annualized) | -0.69% | +2.16% | |
| Volatility (annualized) | 8.0% | 11.0% | |
| Max Drawdown | -23.8% | -34.4% | |
| Fund Family | Principal Funds | Nuveen | |
| Category | Fixed Income | Tax Preferred | |
| Inception | Apr 18, 2018 | Apr 20, 1988 |
IG vs NMI Performance
Principal Investment Grade Corporate ETF (IG) is a ETF from Principal Funds and Nuveen Municipal Income Fund Inc. (NMI) is a ETF from Nuveen. Over the past year IG returned +0.84% while NMI returned +14.95%. Year to date, IG is down 1.54% versus a gain of 11.08% for NMI.
Over three years, IG compounded at +4.56% per year against +9.79% for NMI; over five years the annualized figures are -0.69% and +2.16% respectively. Across the full 8-year window we track, IG has the edge at +0.59% annualized vs +0.38%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
NMI has been the more volatile fund, with annualized monthly volatility of 11.0% compared with 8.0% for IG. 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 -23.8% for IG 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 0.49. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IG charges 0.19% per year while NMI charges 0.73%. On a $10,000 position that is $19 vs $73 annually, a gap of $54 per year that compounds over a long holding period. On income, IG currently yields 5.07% against 4.57% for NMI.
Holdings Overlap
IG and NMI share 0 holdings out of 240 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, IG or NMI?
IG has an expense ratio of 0.19% while NMI charges 0.73%. IG is the cheaper option. On a $10,000 investment, that is $54 per year of difference.
Which performed better, IG or NMI?
Over the past year IG returned +0.84% vs +14.95% for NMI, so NMI leads on 1-year performance. Over the longest common window we track (8 years), IG annualized +0.59% vs +0.38% for NMI. Past performance does not guarantee future results.
Which is riskier, IG or NMI?
NMI has been the more volatile fund at 11.0% annualized versus 8.0% for IG. Worst drawdown: IG -23.8% vs NMI -34.4%.
Should I hold both IG and NMI?
IG and NMI have a monthly-return correlation of 0.49, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IG and NMI?
IG and NMI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 240 unique securities.
Which pays a higher dividend, IG or NMI?
IG yields 5.07% while NMI yields 4.57%, so IG currently pays the higher dividend yield.
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