FAFTX vs. NMTRX

Last updated Jun 26, 2026

FAFTX (Franklin Federal Tax-Free Income Fund Advisor Class) and NMTRX (Nuveen Municipal Total Return Managed Accounts) are both Municipal Bonds funds. Over the past 10 years, FAFTX returned 2.21%/yr vs 2.23%/yr for NMTRX. Their correlation of 0.83 suggests significant overlap in exposure. FAFTX charges 0.52%/yr vs 0.05%/yr for NMTRX.

Performance

FAFTX vs. NMTRX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Franklin Federal Tax-Free Income Fund Advisor Class (FAFTX) and Nuveen Municipal Total Return Managed Accounts (NMTRX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FAFTX achieves a 2.33% return, which is significantly lower than NMTRX's 2.68% return. Both investments have delivered pretty close results over the past 10 years, with FAFTX having a 2.21% annualized return and NMTRX not far ahead at 2.23%.

FAFTX

• 1D: 0.18%
• 1M: 1.46%
• YTD: 2.33%
• 6M: 2.87%
• 1Y: 8.21%
• 3Y*: 4.89%
• 5Y*: 1.23%
• 10Y*: 2.21%

NMTRX

• 1D: 0.10%
• 1M: 1.50%
• YTD: 2.68%
• 6M: 3.08%
• 1Y: 8.28%
• 3Y*: 4.17%
• 5Y*: 0.55%
• 10Y*: 2.23%

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

FAFTX vs. NMTRX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FAFTX Franklin Federal Tax-Free Income Fund Advisor Class	2.33%	4.88%	3.98%	6.80%	-11.57%	2.62%	5.74%	7.44%	0.79%	3.71%
NMTRX Nuveen Municipal Total Return Managed Accounts	2.68%	3.90%	1.99%	6.21%	-11.98%	2.69%	5.25%	9.26%	1.06%	7.41%

Correlation

The correlation between FAFTX and NMTRX is 0.87, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.87
Correlation (3Y) Calculated over the trailing 3-year period	0.90
Correlation (5Y) Calculated over the trailing 5-year period	0.92
Correlation (10Y) Calculated over the trailing 10-year period	0.87
Correlation (All Time) Calculated using the full available price history since May 31, 2007	0.83

The correlation between FAFTX and NMTRX has been stable across timeframes, ranging from 0.83 to 0.92 - a consistent structural relationship.

Return for Risk

FAFTX vs. NMTRX — Risk / Return Rank

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

FAFTX

FAFTX Risk / Return Rank: 79
FAFTX Sharpe Ratio Rank: 90
FAFTX Sortino Ratio Rank: 92
FAFTX Omega Ratio Rank: 92
FAFTX Calmar Ratio Rank: 66
FAFTX Martin Ratio Rank: 56

NMTRX

NMTRX Risk / Return Rank: 87
NMTRX Sharpe Ratio Rank: 94
NMTRX Sortino Ratio Rank: 95
NMTRX Omega Ratio Rank: 95
NMTRX Calmar Ratio Rank: 80
NMTRX Martin Ratio Rank: 73

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.

FAFTX vs. NMTRX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Franklin Federal Tax-Free Income Fund Advisor Class (FAFTX) and Nuveen Municipal Total Return Managed Accounts (NMTRX). 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.

	FAFTX	NMTRX	Difference
Sharpe ratio: Return per unit of total volatility	2.54	2.80	-0.26
Sortino ratio: Return per unit of downside risk	4.10	4.63	-0.52
Omega ratio: Gain probability vs. loss probability	1.64	1.71	-0.07
Calmar ratio: Return relative to maximum drawdown	2.63	3.14	-0.52
Martin ratio: Return relative to average drawdown	9.39	11.55	-2.16

FAFTX vs. NMTRX - Sharpe Ratio Comparison

The current FAFTX Sharpe Ratio is 2.54, which is comparable to the NMTRX Sharpe Ratio of 2.80. The chart below compares the historical Sharpe Ratios of FAFTX and NMTRX, 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

FAFTX vs. NMTRX - Drawdown Comparison

The maximum FAFTX drawdown since its inception was -17.02%, roughly equal to the maximum NMTRX drawdown of -16.36%. Use the drawdown chart below to compare losses from any high point for FAFTX and NMTRX.

Drawdown Indicators

	FAFTX	NMTRX	Difference
Max Drawdown Largest peak-to-trough decline	-17.02%	-16.36%	-0.66%
Max Drawdown (1Y) Largest decline over 1 year	-3.10%	-2.65%	-0.45%
Max Drawdown (3Y) Largest decline over 3 years	-6.97%	-5.77%	-1.20%
Max Drawdown (5Y) Largest decline over 5 years	-17.02%	-16.36%	-0.66%
Max Drawdown (10Y) Largest decline over 10 years	-17.02%	-16.36%	-0.66%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-2.13%	-2.90%	+0.77%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.87%	0.72%	+0.15%

Volatility

FAFTX vs. NMTRX - Volatility Comparison

Franklin Federal Tax-Free Income Fund Advisor Class (FAFTX) and Nuveen Municipal Total Return Managed Accounts (NMTRX) have volatilities of 0.91% and 0.89%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FAFTX	NMTRX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.91%	0.89%	+0.02%
Volatility (6M) Calculated over the trailing 6-month period	2.40%	2.24%	+0.16%
Volatility (1Y) Calculated over the trailing 1-year period	3.20%	2.97%	+0.23%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.65%	4.03%	+0.62%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.27%	4.39%	-0.12%

FAFTX vs. NMTRX - Expense Ratio Comparison

FAFTX has a 0.52% expense ratio, which is higher than NMTRX's 0.05% expense ratio.

Dividends

FAFTX vs. NMTRX - Dividend Comparison

FAFTX's dividend yield for the trailing twelve months is around 3.88%, less than NMTRX's 4.57% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FAFTX Franklin Federal Tax-Free Income Fund Advisor Class	3.88%	5.05%	4.37%	3.23%	3.34%	2.74%	2.97%	3.92%	3.86%	3.90%	3.63%	3.88%
NMTRX Nuveen Municipal Total Return Managed Accounts	4.57%	4.46%	3.55%	3.67%	3.28%	2.73%	2.92%	3.20%	3.47%	3.28%	3.71%	3.91%

Frequently Asked Questions

Can I hold both FAFTX and NMTRX in my portfolio?

FAFTX and NMTRX have a correlation of 0.87, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FAFTX or NMTRX?

FAFTX has higher volatility (0.91%) compared to NMTRX (0.89%). In terms of maximum drawdown, FAFTX dropped -17.02% vs NMTRX's -16.36%.

Which has better risk-adjusted returns?

NMTRX currently has the higher Sharpe Ratio (2.80 vs 2.54), 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.