AFTFX vs. FHMIX

Last updated Jul 29, 2026

AFTFX (American Funds Tax-Exempt Bond Fund of America Class F-1) and FHMIX (Federated Hermes Conservative Municipal Microshort Fund) are both Municipal Bonds funds. Over the past 5 years, AFTFX returned 0.53%/yr vs 1.18%/yr for FHMIX. Their 0.16 correlation means their historical movements had little consistent relationship. AFTFX charges 0.63%/yr vs 0.05%/yr for FHMIX.

Performance

AFTFX vs. FHMIX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Funds Tax-Exempt Bond Fund of America Class F-1 (AFTFX) and Federated Hermes Conservative Municipal Microshort Fund (FHMIX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, AFTFX achieves a 0.49% return, which is significantly lower than FHMIX's 1.33% return.

AFTFX

• 1D: 0.32%
• 1M: -1.35%
• 6M: 0.25%
• YTD: 0.49%
• 1Y: 5.84%
• 3Y*: 3.39%
• 5Y*: 0.53%
• 10Y*: 1.85%
• ALL TIME*: 3.50%

FHMIX

• 1D: 0.00%
• 1M: 0.22%
• 6M: 1.23%
• YTD: 1.33%
• 1Y: 2.82%
• 3Y*: 1.97%
• 5Y*: 1.18%
• 10Y*: —
• ALL TIME*: 1.14%

*Multi-year figures are annualized to reflect compound growth (CAGR)

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
AFTFX American Funds Tax-Exempt Bond Fund of America Class F-1	$0.00	$0.00	$0.00
FHMIX Federated Hermes Conservative Municipal Microshort Fund	$0.00	$0.00	$0.00

AFTFX vs. FHMIX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
AFTFX American Funds Tax-Exempt Bond Fund of America Class F-1	0.49%	3.77%	2.22%	6.41%	-9.23%	0.93%
FHMIX Federated Hermes Conservative Municipal Microshort Fund	1.33%	3.09%	1.19%	0.32%	0.00%	0.02%

Correlation

The correlation between AFTFX and FHMIX is 0.32, which is low. Their historical price movements had little consistent relationship.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.32
Correlation (3Y) Balances recent behavior with more history.	0.21
Correlation (5Y) Shows whether the relationship held over a longer period.	0.16
Correlation (All Time) Calculated using the full available price history since May 25, 2021	0.16

The correlation between AFTFX and FHMIX shifts across timeframes, from 0.16 (all time) to 0.32 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

AFTFX vs. FHMIX — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

AFTFX

AFTFX Risk / Return Rank: 77
AFTFX Sharpe Ratio Rank: 88
AFTFX Sortino Ratio Rank: 89
AFTFX Omega Ratio Rank: 91
AFTFX Calmar Ratio Rank: 63
AFTFX Martin Ratio Rank: 52

FHMIX

FHMIX Risk / Return Rank: 99
FHMIX Sharpe Ratio Rank: 98
FHMIX Sortino Ratio Rank: 100
FHMIX Omega Ratio Rank: 100
FHMIX Calmar Ratio Rank: 100
FHMIX Martin Ratio Rank: 100

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

AFTFX vs. FHMIX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for American Funds Tax-Exempt Bond Fund of America Class F-1 (AFTFX) and Federated Hermes Conservative Municipal Microshort Fund (FHMIX). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	AFTFX	FHMIX	Difference
Sharpe ratio: Return per unit of total volatility	2.20	3.28	-1.08
Sortino ratio: Return per unit of downside risk	3.31	13.98	-10.67
Omega ratio: Gain probability vs. loss probability	1.52	7.98	-6.46
Calmar ratio: Return relative to maximum drawdown	2.13	28.37	-26.24
Martin ratio: Return relative to average drawdown	7.29	93.72	-86.43

AFTFX vs. FHMIX - Sharpe Ratio Comparison

The current AFTFX Sharpe Ratio is 2.20, which is lower than the FHMIX Sharpe Ratio of 3.28. The chart below compares the historical Sharpe Ratios of AFTFX and FHMIX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

AFTFX vs. FHMIX - Drawdown Comparison

The maximum AFTFX drawdown since its inception was -13.99%, which is greater than FHMIX's maximum drawdown of -0.50%. Use the drawdown chart below to compare losses from any high point for AFTFX and FHMIX.

Drawdown Indicators

	AFTFX	FHMIX	Difference
Max Drawdown Largest peak-to-trough decline	-13.99%	-0.50%	-13.49%
Max Drawdown (1Y) Largest decline over 1 year	-2.76%	-0.10%	-2.66%
Max Drawdown (3Y) Largest decline over 3 years	-5.07%	-0.50%	-4.57%
Max Drawdown (5Y) Largest decline over 5 years	-13.99%	-0.50%	-13.49%
Max Drawdown (10Y) Largest decline over 10 years	-13.99%	—	—
Current Drawdown Current decline from peak	-1.67%	0.00%	-1.67%
Average Drawdown Average peak-to-trough decline	-1.85%	-0.06%	-1.79%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.80%	0.03%	+0.77%

Volatility

AFTFX vs. FHMIX - Volatility Comparison

American Funds Tax-Exempt Bond Fund of America Class F-1 (AFTFX) has a higher volatility of 0.94% compared to Federated Hermes Conservative Municipal Microshort Fund (FHMIX) at 0.22%. This indicates that AFTFX's price experiences larger fluctuations and is considered to be riskier than FHMIX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AFTFX	FHMIX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.94%	0.22%	+0.72%
Volatility (6M) Calculated over the trailing 6-month period	2.16%	0.54%	+1.62%
Volatility (1Y) Calculated over the trailing 1-year period	2.68%	0.87%	+1.81%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.77%	0.80%	+2.97%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.78%	0.78%	+3.00%

AFTFX vs. FHMIX - Expense Ratio Comparison

AFTFX has a 0.63% expense ratio, which is higher than FHMIX's 0.05% expense ratio.

Dividends

AFTFX vs. FHMIX - Dividend Comparison

AFTFX's dividend yield for the trailing twelve months is around 2.98%, more than FHMIX's 2.78% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AFTFX American Funds Tax-Exempt Bond Fund of America Class F-1	2.98%	2.92%	2.84%	2.62%	2.25%	2.39%	2.34%	2.52%	2.75%	2.93%	3.02%	3.10%
FHMIX Federated Hermes Conservative Municipal Microshort Fund	2.78%	3.04%	1.18%	0.32%	0.00%	0.02%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both AFTFX and FHMIX in my portfolio?

AFTFX and FHMIX have a correlation of 0.32, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, AFTFX or FHMIX?

AFTFX has higher volatility (0.94%) compared to FHMIX (0.22%). In terms of maximum drawdown, AFTFX dropped -13.99% vs FHMIX's -0.50%.

Which has better risk-adjusted returns?

FHMIX currently has the higher Sharpe Ratio (3.28 vs 2.20), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.