FHIIX vs. FMUSX

Last updated Jun 23, 2026

FHIIX (Federated Hermes High Income Bond Fund) and FMUSX (Federated Hermes Municipal Ultra Short Fund) are both mutual funds - FHIIX is a High Yield Bonds fund managed by Federated, while FMUSX is a Municipal Bonds fund managed by Federated. Over the past 10 years, FHIIX returned 4.82%/yr vs 1.65%/yr for FMUSX. At a 0.10 correlation, their price movements are largely independent. FHIIX charges 0.90%/yr vs 0.36%/yr for FMUSX.

Performance

FHIIX vs. FMUSX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Federated Hermes High Income Bond Fund (FHIIX) and Federated Hermes Municipal Ultra Short Fund (FMUSX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FHIIX achieves a 1.17% return, which is significantly higher than FMUSX's 0.72% return. Over the past 10 years, FHIIX has outperformed FMUSX with an annualized return of 4.82%, while FMUSX has yielded a comparatively lower 1.65% annualized return.

FHIIX

• 1D: 0.00%
• 1M: 0.76%
• YTD: 1.17%
• 6M: 1.46%
• 1Y: 5.27%
• 3Y*: 7.57%
• 5Y*: 3.21%
• 10Y*: 4.82%

FMUSX

• 1D: 0.00%
• 1M: 0.43%
• YTD: 0.72%
• 6M: 0.98%
• 1Y: 1.93%
• 3Y*: 3.05%
• 5Y*: 1.98%
• 10Y*: 1.65%

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

FHIIX vs. FMUSX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FHIIX Federated Hermes High Income Bond Fund	1.17%	8.00%	6.16%	12.42%	-11.74%	4.68%	5.90%	14.35%	-3.06%	6.54%
FMUSX Federated Hermes Municipal Ultra Short Fund	0.72%	3.47%	3.02%	3.40%	-0.62%	0.05%	1.12%	2.27%	1.46%	1.16%

Correlation

The correlation between FHIIX and FMUSX is 0.23, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.23
Correlation (3Y) Calculated over the trailing 3-year period	0.21
Correlation (5Y) Calculated over the trailing 5-year period	0.21
Correlation (10Y) Calculated over the trailing 10-year period	0.17
Correlation (All Time) Calculated using the full available price history since Oct 24, 2000	0.10

The correlation between FHIIX and FMUSX shifts across timeframes, from 0.10 (all time) to 0.23 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

FHIIX vs. FMUSX — Risk / Return Rank

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

FHIIX

FHIIX Risk / Return Rank: 48
FHIIX Sharpe Ratio Rank: 41
FHIIX Sortino Ratio Rank: 44
FHIIX Omega Ratio Rank: 62
FHIIX Calmar Ratio Rank: 36
FHIIX Martin Ratio Rank: 57

FMUSX

FMUSX Risk / Return Rank: 94
FMUSX Sharpe Ratio Rank: 81
FMUSX Sortino Ratio Rank: 98
FMUSX Omega Ratio Rank: 98
FMUSX Calmar Ratio Rank: 96
FMUSX Martin Ratio Rank: 97

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.

FHIIX vs. FMUSX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Federated Hermes High Income Bond Fund (FHIIX) and Federated Hermes Municipal Ultra Short Fund (FMUSX). 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.

	FHIIX	FMUSX	Difference
Sharpe ratio: Return per unit of total volatility	1.74	2.43	-0.70
Sortino ratio: Return per unit of downside risk	2.56	5.91	-3.35
Omega ratio: Gain probability vs. loss probability	1.40	2.48	-1.08
Calmar ratio: Return relative to maximum drawdown	2.17	5.96	-3.79
Martin ratio: Return relative to average drawdown	10.79	24.77	-13.98

FHIIX vs. FMUSX - Sharpe Ratio Comparison

The current FHIIX Sharpe Ratio is 1.74, which is comparable to the FMUSX Sharpe Ratio of 2.43. The chart below compares the historical Sharpe Ratios of FHIIX and FMUSX, 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

FHIIX vs. FMUSX - Drawdown Comparison

The maximum FHIIX drawdown since its inception was -35.49%, which is greater than FMUSX's maximum drawdown of -2.49%. Use the drawdown chart below to compare losses from any high point for FHIIX and FMUSX.

Drawdown Indicators

	FHIIX	FMUSX	Difference
Max Drawdown Largest peak-to-trough decline	-35.49%	-2.49%	-33.00%
Max Drawdown (1Y) Largest decline over 1 year	-2.51%	-0.40%	-2.11%
Max Drawdown (3Y) Largest decline over 3 years	-3.56%	-2.06%	-1.50%
Max Drawdown (5Y) Largest decline over 5 years	-15.39%	-2.06%	-13.33%
Max Drawdown (10Y) Largest decline over 10 years	-21.19%	-2.49%	-18.70%
Current Drawdown Current decline from peak	-0.15%	0.00%	-0.15%
Average Drawdown Average peak-to-trough decline	-5.32%	-0.16%	-5.16%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.50%	0.66%	-0.16%

Volatility

FHIIX vs. FMUSX - Volatility Comparison

Federated Hermes High Income Bond Fund (FHIIX) has a higher volatility of 0.74% compared to Federated Hermes Municipal Ultra Short Fund (FMUSX) at 0.34%. This indicates that FHIIX's price experiences larger fluctuations and is considered to be riskier than FMUSX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FHIIX	FMUSX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.74%	0.34%	+0.40%
Volatility (6M) Calculated over the trailing 6-month period	2.42%	0.71%	+1.71%
Volatility (1Y) Calculated over the trailing 1-year period	3.14%	0.97%	+2.17%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.99%	1.91%	+3.08%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.47%	1.46%	+4.01%

FHIIX vs. FMUSX - Expense Ratio Comparison

FHIIX has a 0.90% expense ratio, which is higher than FMUSX's 0.36% expense ratio.

Dividends

FHIIX vs. FMUSX - Dividend Comparison

FHIIX's dividend yield for the trailing twelve months is around 5.47%, more than FMUSX's 1.71% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FHIIX Federated Hermes High Income Bond Fund	5.47%	5.29%	5.36%	5.50%	5.70%	4.60%	4.97%	5.28%	5.75%	5.29%	5.14%	5.94%
FMUSX Federated Hermes Municipal Ultra Short Fund	1.71%	3.10%	2.67%	2.42%	0.88%	0.25%	0.90%	1.74%	1.55%	1.05%	0.83%	0.60%

Frequently Asked Questions

Can I hold both FHIIX and FMUSX in my portfolio?

FHIIX and FMUSX have a correlation of 0.23, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FHIIX or FMUSX?

FHIIX has higher volatility (0.74%) compared to FMUSX (0.34%). In terms of maximum drawdown, FHIIX dropped -35.49% vs FMUSX's -2.49%.

Which has better risk-adjusted returns?

FMUSX currently has the higher Sharpe Ratio (2.43 vs 1.74), 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.