FFTFX vs. NVDY

Last updated Jun 4, 2026

FFTFX (Franklin Federal Limited-Term Tax-Free Income Fund) and NVDY (YieldMax NVDA Option Income Strategy ETF) are both funds - FFTFX is a Municipal Bonds fund managed by Franklin Templeton, while NVDY is a Derivative Income fund actively managed by YieldMax. Over the past 3 years, FFTFX returned 4.22%/yr vs 54.54%/yr for NVDY. At a 0.04 correlation, their price movements are largely independent. FFTFX charges 0.55%/yr vs 0.99%/yr for NVDY.

Performance

FFTFX vs. NVDY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Franklin Federal Limited-Term Tax-Free Income Fund (FFTFX) and YieldMax NVDA Option Income Strategy ETF (NVDY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FFTFX achieves a 1.04% return, which is significantly lower than NVDY's 13.06% return.

FFTFX

• 1D: 0.10%
• 1M: 0.33%
• YTD: 1.04%
• 6M: 1.30%
• 1Y: 4.21%
• 3Y*: 4.22%
• 5Y*: 1.96%
• 10Y*: 1.77%

NVDY

• 1D: -2.22%
• 1M: 5.54%
• YTD: 13.06%
• 6M: 17.67%
• 1Y: 46.64%
• 3Y*: 54.54%
• 5Y*: —
• 10Y*: —

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

FFTFX vs. NVDY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
FFTFX Franklin Federal Limited-Term Tax-Free Income Fund	1.04%	5.07%	3.88%	2.36%
NVDY YieldMax NVDA Option Income Strategy ETF	13.06%	27.38%	114.23%	42.02%

Correlation

The correlation between FFTFX and NVDY is 0.01, 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 (1Y) Calculated over the trailing 1-year period	0.01
Correlation (3Y) Calculated over the trailing 3-year period	0.04
Correlation (All Time) Calculated using the full available price history since May 12, 2023	0.04

Return for Risk

FFTFX vs. NVDY — Risk / Return Rank

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

FFTFX

FFTFX Risk / Return Rank: 81
FFTFX Sharpe Ratio Rank: 93
FFTFX Sortino Ratio Rank: 97
FFTFX Omega Ratio Rank: 98
FFTFX Calmar Ratio Rank: 67
FFTFX Martin Ratio Rank: 53

NVDY

NVDY Risk / Return Rank: 52
NVDY Sharpe Ratio Rank: 49
NVDY Sortino Ratio Rank: 45
NVDY Omega Ratio Rank: 44
NVDY Calmar Ratio Rank: 72
NVDY Martin Ratio Rank: 52

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.

FFTFX vs. NVDY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Franklin Federal Limited-Term Tax-Free Income Fund (FFTFX) and YieldMax NVDA Option Income Strategy ETF (NVDY). 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.

	FFTFX	NVDY	Difference
Sharpe ratio: Return per unit of total volatility	3.15	1.72	+1.43
Sortino ratio: Return per unit of downside risk	5.62	2.29	+3.33
Omega ratio: Gain probability vs. loss probability	2.05	1.29	+0.76
Calmar ratio: Return relative to maximum drawdown	3.17	3.66	-0.49
Martin ratio: Return relative to average drawdown	10.84	9.00	+1.84
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FFTFX vs. NVDY - Sharpe Ratio Comparison

The current FFTFX Sharpe Ratio is 3.15, which is higher than the NVDY Sharpe Ratio of 1.72. The chart below compares the historical Sharpe Ratios of FFTFX and NVDY, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	FFTFX	NVDY	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.15	1.72	+1.43
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	1.09	—	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.96	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.31	1.64	-0.32

Drawdowns

FFTFX vs. NVDY - Drawdown Comparison

The maximum FFTFX drawdown since its inception was -6.52%, smaller than the maximum NVDY drawdown of -34.08%. Use the drawdown chart below to compare losses from any high point for FFTFX and NVDY.

Drawdown Indicators

	FFTFX	NVDY	Difference
Max Drawdown Largest peak-to-trough decline	-6.52%	-34.08%	+27.56%
Max Drawdown (1Y) Largest decline over 1 year	-1.33%	-12.81%	+11.48%
Max Drawdown (3Y) Largest decline over 3 years	-1.74%	-34.08%	+32.34%
Max Drawdown (5Y) Largest decline over 5 years	-6.49%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-6.52%	—	—
Current Drawdown Current decline from peak	-0.26%	-6.66%	+6.40%
Average Drawdown Average peak-to-trough decline	-0.57%	-6.15%	+5.58%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.39%	5.20%	-4.81%

Volatility

FFTFX vs. NVDY - Volatility Comparison

The current volatility for Franklin Federal Limited-Term Tax-Free Income Fund (FFTFX) is 0.45%, while YieldMax NVDA Option Income Strategy ETF (NVDY) has a volatility of 9.46%. This indicates that FFTFX experiences smaller price fluctuations and is considered to be less risky than NVDY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FFTFX	NVDY	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.45%	9.46%	-9.01%
Volatility (6M) Calculated over the trailing 6-month period	1.04%	20.68%	-19.64%
Volatility (1Y) Calculated over the trailing 1-year period	1.34%	27.35%	-26.01%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.80%	38.24%	-36.44%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.85%	38.24%	-36.39%

FFTFX vs. NVDY - Expense Ratio Comparison

FFTFX has a 0.55% expense ratio, which is lower than NVDY's 0.99% expense ratio.

Dividends

FFTFX vs. NVDY - Dividend Comparison

FFTFX's dividend yield for the trailing twelve months is around 2.77%, less than NVDY's 61.36% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FFTFX Franklin Federal Limited-Term Tax-Free Income Fund	2.77%	3.65%	3.21%	2.11%	1.20%	0.83%	1.19%	1.91%	1.28%	0.71%	0.83%	0.90%
NVDY YieldMax NVDA Option Income Strategy ETF	61.36%	83.10%	83.65%	22.32%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FFTFX and NVDY in my portfolio?

FFTFX and NVDY have a correlation of 0.01, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FFTFX or NVDY?

NVDY has higher volatility (9.46%) compared to FFTFX (0.45%). In terms of maximum drawdown, FFTFX dropped -6.52% vs NVDY's -34.08%.

Which has better risk-adjusted returns?

FFTFX currently has the higher Sharpe Ratio (3.15 vs 1.72), 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.