MFEM vs NMI
PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF vs Nuveen Municipal Income Fund Inc.
Quick Verdict
MFEM has a lower expense ratio. MFEM delivered stronger 1-year returns. MFEM offers more diversification with 701 holdings.
Side-by-Side Comparison
| Metric | MFEM | NMI | Winner |
|---|---|---|---|
| Expense Ratio | 0.49% | 0.73% | |
| AUM | $156M | - | |
| Dividend Yield | 2.39% | 4.65% | |
| Holdings | 701 | 220 | |
| YTD Return | +21.80% | +7.43% | |
| 1Y Return | +33.81% | +11.77% | |
| 3Y Return (annualized) | +20.43% | +8.45% | |
| 5Y Return (annualized) | +8.97% | +1.49% | |
| Volatility (annualized) | 17.7% | 11.0% | |
| Max Drawdown | -45.3% | -34.4% | |
| Fund Family | PIMCO (US) | Nuveen | |
| Category | Equity | Tax Preferred | |
| Inception | Aug 31, 2017 | Apr 20, 1988 |
MFEM vs NMI Performance
PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF (MFEM) is a ETF from PIMCO (US) and Nuveen Municipal Income Fund Inc. (NMI) is a ETF from Nuveen. Over the past year MFEM returned +33.81% while NMI returned +11.77%. Year to date, MFEM is up 21.80% versus a gain of 7.43% for NMI.
Over three years, MFEM compounded at +20.43% per year against +8.45% for NMI; over five years the annualized figures are +8.97% and +1.49% respectively. Across the full 9-year window we track, MFEM has the edge at +6.84% annualized vs +0.27%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
MFEM has been the more volatile fund, with annualized monthly volatility of 17.7% 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 -45.3% for MFEM 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 0.23. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MFEM charges 0.49% per year while NMI charges 0.73%. On a $10,000 position that is $49 vs $73 annually, a gap of $24 per year that compounds over a long holding period. On income, MFEM currently yields 2.39% against 4.65% for NMI.
Holdings Overlap
MFEM and NMI share 0 holdings out of 598 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, MFEM or NMI?
MFEM has an expense ratio of 0.49% while NMI charges 0.73%. MFEM is the cheaper option. On a $10,000 investment, that is $24 per year of difference.
Which performed better, MFEM or NMI?
Over the past year MFEM returned +33.81% vs +11.77% for NMI, so MFEM leads on 1-year performance. Over the longest common window we track (9 years), MFEM annualized +6.84% vs +0.27% for NMI. Past performance does not guarantee future results.
Which is riskier, MFEM or NMI?
MFEM has been the more volatile fund at 17.7% annualized versus 11.0% for NMI. Worst drawdown: MFEM -45.3% vs NMI -34.4%.
Should I hold both MFEM and NMI?
MFEM and NMI have a monthly-return correlation of 0.23, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MFEM and NMI?
MFEM and NMI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 598 unique securities.
Which pays a higher dividend, MFEM or NMI?
MFEM yields 2.39% while NMI yields 4.65%, so NMI currently pays the higher dividend yield.
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