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Western Asset Municipal High Income Fund Inc (MHF) Sharpe Ratio: 0.46

Mutual Fund · Currency in USD · Last updated Jun 25, 2026

A closed-end fixed income fund investing in municipal bonds

MHF's Sharpe Ratio of 0.46 indicates that for each unit of volatility, it generates 0.46 units of excess return above the risk-free rate. The ratio is calculated using historical daily returns over the past 12 months (as of Jun 25, 2026).

Sharpe uses total volatility (standard deviation) which includes both upside and downside price movements, making it useful for comparing risk-adjusted returns across different assets. For how to read this number and when it can mislead, see Sharpe Ratio Explained.

MHF Sharpe Ratio Rank

MHF Sharpe Ratio Rank: 7.27
Concerning

MHF ranks above 7.2% of all investments in our database based on Sharpe Ratio over the past 12 months, indicating weak returns relative to total risk taken. Securities are ranked from 0 (worst) to 100 (best).

What moves the rank

  • Strong returns with low total volatility → Higher rank
  • High volatility (both upside and downside) → Lower rank
  • Consistent returns → Higher rank than volatile returns of same magnitude
  • Sharp drawdowns increase volatility → Lower rank

What you can do with this information

  • Weak risk-adjusted returns relative to category peers
  • Evaluate whether this holding aligns with your risk-return objectives
  • Consider reducing exposure or re-evaluating position size
  • Review higher-ranked alternatives in the same category

MHF Sharpe Ratio Market Positioning

The chart shows MHF's Sharpe Ratio relative to all mutual funds on our platform, with color zones indicating percentile rankings. Higher ratios indicate better risk-adjusted returns.

  • Red zone (bottom 25%): 1.19 or lower
  • Yellow zone (middle 50%): 1.19 to 2.14
  • Green zone (top 25%): 2.14 or higher
  • Top 1%: 4.05+
  • Median: 1.76 — half of all investments score higher

How it compares to other similar mutual funds

The table compares Western Asset Municipal High Income Fund Inc's Sharpe Ratio with other mutual funds in the Municipal Bonds category across multiple time periods, showing how MHF's risk-adjusted performance compares to similar funds.

Data shows 1-, 5-, and 10-year periods, plus each fund's all-time average, as of Jun 25, 2026.

SymbolName1Y Sharpe Ratio5Y Sharpe Ratio10Y Sharpe RatioAll Time Sharpe Ratio
DFABXDFA Short-Term Selective State Municipal Bond Portfolio4.77
DNYMXDFA NY Municipal Bond Portfolio4.52
DFCMXDFA California Short Term Municipal Bond Portfolio4.34
USMTXJPMorgan Ultra-Short Municipal Fund4.27
USMSXJPMorgan Ultra-Short Municipal Fund4.15
DFSMXDFA Short Term Municipal Bond Portfolio4.04
BATVXBlackRock Allocation Target Shares3.57
BSNSXBaird Strategic Municipal Bond Fund3.51
ATOIXabrdn Ultra Short Municipal Income Fund3.50
DSSMXDFA Selective State Municipal Bond Portfolio3.42
MHFWestern Asset Municipal High Income Fund Inc0.46

S&P 500 Index

How to choose period

Historical Sharpe Ratio

The chart shows MHF's rolling Sharpe ratio over time compared to your chosen benchmark. Rising trends indicate improving returns relative to total volatility, while declining trends may signal deteriorating risk-adjusted performance or increased volatility. Use multiple timeframes to distinguish short-term fluctuations from long-term patterns.

Identify market cycles by observing when MHF consistently outperforms (line above benchmark), underperforms (below benchmark), or aligns with the benchmark.

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Sharpe Ratio Calculator

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