FMHI vs. LDSF
FMHI (First Trust Municipal High Income ETF) and LDSF (First Trust Low Duration Strategic Focus ETF) are both exchange-traded funds - FMHI is a Municipal Bonds fund actively managed by First Trust, while LDSF is a Short-Term Bond fund actively managed by First Trust. Both are actively managed. Over the past 5 years, FMHI returned 0.91%/yr vs 2.40%/yr for LDSF. At a 0.38 correlation, their price movements are largely independent. FMHI charges 0.55%/yr vs 0.87%/yr for LDSF.
Performance
FMHI vs. LDSF - Performance Comparison
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Returns By Period
In the year-to-date period, FMHI achieves a 2.68% return, which is significantly higher than LDSF's 0.84% return.
FMHI
- 1D
- 0.10%
- 1M
- 0.99%
- YTD
- 2.68%
- 6M
- 3.23%
- 1Y
- 8.49%
- 3Y*
- 5.36%
- 5Y*
- 0.91%
- 10Y*
- —
LDSF
- 1D
- 0.10%
- 1M
- 0.15%
- YTD
- 0.84%
- 6M
- 1.21%
- 1Y
- 4.84%
- 3Y*
- 5.37%
- 5Y*
- 2.40%
- 10Y*
- —
FMHI vs. LDSF - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |
|---|---|---|---|---|---|---|---|---|
FMHI First Trust Municipal High Income ETF | 2.68% | 3.54% | 5.41% | 7.20% | -14.67% | 7.58% | 4.09% | 10.16% |
LDSF First Trust Low Duration Strategic Focus ETF | 0.84% | 6.82% | 4.20% | 6.53% | -5.47% | -0.28% | 2.48% | 4.52% |
Correlation
The correlation between FMHI and LDSF is 0.59, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.59 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.56 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.47 |
Correlation (All Time) Calculated using the full available price history since Jan 8, 2019 | 0.38 |
Over the past year, FMHI and LDSF have become more correlated (0.59) than their long-term average of 0.38, meaning their price movements have been converging.
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Return for Risk
FMHI vs. LDSF — Risk / Return Rank
FMHI
LDSF
FMHI vs. LDSF - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for First Trust Municipal High Income ETF (FMHI) and First Trust Low Duration Strategic Focus ETF (LDSF). 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.
| FMHI | LDSF | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.37 | ||
| Sortino ratioReturn per unit of downside risk | +0.63 | ||
| Omega ratioGain probability vs. loss probability | 1.61 | 1.49 | +0.12 |
| Calmar ratioReturn relative to maximum drawdown | 3.63 | 2.79 | +0.84 |
| Martin ratioReturn relative to average drawdown | 13.66 | 11.88 | +1.78 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| FMHI | LDSF | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.75 | 2.38 | +0.37 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.19 | 0.78 | -0.59 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.56 | 0.81 | -0.25 |
Drawdowns
FMHI vs. LDSF - Drawdown Comparison
The maximum FMHI drawdown since its inception was -18.83%, which is greater than LDSF's maximum drawdown of -8.56%. Use the drawdown chart below to compare losses from any high point for FMHI and LDSF.
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Drawdown Indicators
| FMHI | LDSF | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -18.83% | -8.56% | -10.27% |
Max Drawdown (1Y)Largest decline over 1 year | -2.35% | -1.74% | -0.61% |
Max Drawdown (3Y)Largest decline over 3 years | -6.17% | -1.74% | -4.43% |
Max Drawdown (5Y)Largest decline over 5 years | -18.83% | -7.83% | -11.00% |
Current DrawdownCurrent decline from peak | 0.00% | -0.16% | +0.16% |
Average DrawdownAverage peak-to-trough decline | -4.52% | -1.46% | -3.06% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.62% | 0.41% | +0.21% |
Volatility
FMHI vs. LDSF - Volatility Comparison
First Trust Municipal High Income ETF (FMHI) has a higher volatility of 0.96% compared to First Trust Low Duration Strategic Focus ETF (LDSF) at 0.70%. This indicates that FMHI's price experiences larger fluctuations and is considered to be riskier than LDSF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| FMHI | LDSF | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.96% | 0.70% | +0.26% |
Volatility (6M)Calculated over the trailing 6-month period | 2.10% | 1.66% | +0.44% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.12% | 2.06% | +1.06% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 4.76% | 3.08% | +1.68% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.73% | 3.18% | +2.55% |
FMHI vs. LDSF - Expense Ratio Comparison
FMHI has a 0.55% expense ratio, which is lower than LDSF's 0.87% expense ratio.
Dividends
FMHI vs. LDSF - Dividend Comparison
FMHI's dividend yield for the trailing twelve months is around 4.24%, less than LDSF's 4.63% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
FMHI First Trust Municipal High Income ETF | 4.24% | 4.16% | 4.01% | 3.89% | 3.57% | 2.87% | 3.13% | 3.33% | 3.46% | 0.30% |
LDSF First Trust Low Duration Strategic Focus ETF | 4.63% | 4.52% | 4.53% | 4.08% | 2.61% | 1.97% | 2.65% | 3.06% | 0.00% | 0.00% |
Frequently Asked Questions
FMHI and LDSF have a correlation of 0.59, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
FMHI has higher volatility (0.96%) compared to LDSF (0.70%). In terms of maximum drawdown, FMHI dropped -18.83% vs LDSF's -8.56%.
On 5-year performance, LDSF leads with 2.40% vs 0.91% for FMHI. On fees, FMHI is cheaper at 0.55% per year. On volatility, LDSF has been the lower-risk option at 0.70%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, LDSF has performed better with a 2.40% return vs 0.91%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
FMHI is cheaper with a 0.55% expense ratio, compared with 0.87% for LDSF.
LDSF has the higher dividend yield at 4.63%, compared with 4.24% for FMHI.
FMHI is categorized as Municipal Bonds, while LDSF is Short-Term Bond. Their fees differ too: 0.55% for FMHI and 0.87% for LDSF.
FMHI currently has the higher Sharpe Ratio (2.75 vs 2.38), 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.
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