FBDC vs. DFNM

Last updated Jun 4, 2026

FBDC (FT Confluence BDC & Specialty Finance Income ETF) and DFNM (Dimensional National Municipal Bond ETF) are both exchange-traded funds - FBDC is a Financials Equities fund actively managed by First Trust, while DFNM is a Municipal Bonds fund actively managed by Dimensional. Both are actively managed. At a correlation of -0.07, they often move in opposite directions. FBDC charges 1.35%/yr vs 0.17%/yr for DFNM.

Performance

FBDC vs. DFNM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in FT Confluence BDC & Specialty Finance Income ETF (FBDC) and Dimensional National Municipal Bond ETF (DFNM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FBDC achieves a -9.51% return, which is significantly lower than DFNM's 1.29% return.

FBDC

• 1D: -2.98%
• 1M: -7.81%
• YTD: -9.51%
• 6M: -10.31%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

DFNM

• 1D: 0.02%
• 1M: 0.42%
• YTD: 1.29%
• 6M: 1.71%
• 1Y: 5.29%
• 3Y*: 3.40%
• 5Y*: —
• 10Y*: —

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

FBDC vs. DFNM - Yearly Performance Comparison

	2026 (YTD)	2025
FBDC FT Confluence BDC & Specialty Finance Income ETF	-9.51%	-2.43%
DFNM Dimensional National Municipal Bond ETF	1.29%	3.26%

Correlation

The correlation between FBDC and DFNM is -0.07, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (All Time) Calculated using the full available price history since Jul 1, 2025	-0.07

Return for Risk

FBDC vs. DFNM — Risk / Return Rank

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

DFNM

DFNM Risk / Return Rank: 79
DFNM Sharpe Ratio Rank: 89
DFNM Sortino Ratio Rank: 91
DFNM Omega Ratio Rank: 94
DFNM Calmar Ratio Rank: 59
DFNM Martin Ratio Rank: 59

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.

FBDC vs. DFNM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for FT Confluence BDC & Specialty Finance Income ETF (FBDC) and Dimensional National Municipal Bond ETF (DFNM). 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.

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

Sharpe Ratios by Period

	FBDC	DFNM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	—	3.03	—
Sharpe Ratio (All Time) Calculated using the full available price history	-0.70	0.57	-1.27

Drawdowns

FBDC vs. DFNM - Drawdown Comparison

The maximum FBDC drawdown since its inception was -20.60%, which is greater than DFNM's maximum drawdown of -6.99%. Use the drawdown chart below to compare losses from any high point for FBDC and DFNM.

Drawdown Indicators

	FBDC	DFNM	Difference
Max Drawdown Largest peak-to-trough decline	-20.60%	-6.99%	-13.61%
Max Drawdown (1Y) Largest decline over 1 year	—	-1.84%	—
Max Drawdown (3Y) Largest decline over 3 years	—	-2.82%	—
Current Drawdown Current decline from peak	-17.24%	-0.36%	-16.88%
Average Drawdown Average peak-to-trough decline	-10.14%	-1.96%	-8.18%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	0.51%	—

Volatility

Volatility by Period

	FBDC	DFNM	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	0.58%	—
Volatility (6M) Calculated over the trailing 6-month period	—	1.29%	—
Volatility (1Y) Calculated over the trailing 1-year period	18.06%	1.75%	+16.31%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.06%	2.54%	+15.52%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.06%	2.54%	+15.52%

FBDC vs. DFNM - Expense Ratio Comparison

FBDC has a 1.35% expense ratio, which is higher than DFNM's 0.17% expense ratio.

Dividends

FBDC vs. DFNM - Dividend Comparison

FBDC's dividend yield for the trailing twelve months is around 11.52%, more than DFNM's 2.89% yield.

Position	TTM	2025	2024	2023	2022	2021
DFNM Dimensional National Municipal Bond ETF	2.89%	2.94%	2.74%	2.39%	1.16%	0.05%
FBDC FT Confluence BDC & Specialty Finance Income ETF	11.52%	5.41%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FBDC and DFNM in my portfolio?

FBDC and DFNM have a correlation of -0.07, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, FBDC or DFNM?

On fees, DFNM is cheaper at 0.17% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, FBDC or DFNM?

DFNM is cheaper with a 0.17% expense ratio, compared with 1.35% for FBDC.

Which ETF pays a higher dividend yield, FBDC or DFNM?

FBDC has the higher dividend yield at 11.52%, compared with 2.89% for DFNM.

What is the main difference between FBDC and DFNM?

FBDC is categorized as Financials Equities, while DFNM is Municipal Bonds. They also come from different issuers: First Trust and Dimensional. Their fees differ too: 1.35% for FBDC and 0.17% for DFNM.