NMI vs PHDG

Quick Verdict

PHDG has a lower expense ratio. PHDG delivered stronger 1-year returns. PHDG offers more diversification with 494 holdings.

Lower Fees: PHDGHigher Returns: PHDGMore Diversified: PHDG

Side-by-Side Comparison

MetricNMIPHDGWinner
Expense Ratio0.73%0.39%
AUM-$61M
Dividend Yield4.57%1.68%
Holdings220514
YTD Return+11.08%+13.02%
1Y Return+14.95%+18.49%
3Y Return (annualized)+9.79%+9.60%
5Y Return (annualized)+2.16%+4.75%
Volatility (annualized)11.0%9.9%
Max Drawdown-34.4%-23.6%
Fund FamilyNuveenInvesco (US)
CategoryTax PreferredEquity
InceptionApr 20, 1988Dec 5, 2012

NMI vs PHDG Performance

Nuveen Municipal Income Fund Inc. (NMI) is a ETF from Nuveen and Invesco S&P 500 Downside Hedged ETF (PHDG) is a ETF from Invesco (US). Over the past year NMI returned +14.95% while PHDG returned +18.49%. Year to date, NMI is up 11.08% versus a gain of 13.02% for PHDG.

Over three years, NMI compounded at +9.79% per year against +9.60% for PHDG; over five years the annualized figures are +2.16% and +4.75% respectively. Across the full 14-year window we track, PHDG has the edge at +4.45% 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 9.9% for PHDG. 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 -34.4% for NMI and -23.6% for PHDG. 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 0.09. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

NMI charges 0.73% per year while PHDG charges 0.39%. On a $10,000 position that is $73 vs $39 annually, a gap of $34 per year that compounds over a long holding period. On income, NMI currently yields 4.57% against 1.68% for PHDG.

Holdings Overlap

0.0%overlap

NMI and PHDG share 0 holdings out of 589 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, NMI or PHDG?

NMI has an expense ratio of 0.73% while PHDG charges 0.39%. PHDG is the cheaper option. On a $10,000 investment, that is $34 per year of difference.

Which performed better, NMI or PHDG?

Over the past year NMI returned +14.95% vs +18.49% for PHDG, so PHDG leads on 1-year performance. Over the longest common window we track (14 years), NMI annualized +0.38% vs +4.45% for PHDG. Past performance does not guarantee future results.

Which is riskier, NMI or PHDG?

NMI has been the more volatile fund at 11.0% annualized versus 9.9% for PHDG. Worst drawdown: NMI -34.4% vs PHDG -23.6%.

Should I hold both NMI and PHDG?

NMI and PHDG have a monthly-return correlation of 0.09, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between NMI and PHDG?

NMI and PHDG share 0 common holdings with a 0.0% weight overlap. Combined, they hold 589 unique securities.

Which pays a higher dividend, NMI or PHDG?

NMI yields 4.57% while PHDG yields 1.68%, so NMI currently pays the higher dividend yield.

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