FMHI vs. MUNY

Last updated Jun 24, 2026

FMHI (First Trust Municipal High Income ETF) and MUNY (Vanguard New York Tax-Exempt Bond ETF) are both Municipal Bonds funds. FMHI is actively managed, while MUNY is passively managed. Over the past year, FMHI returned 7.99% vs 6.39% for MUNY. Their correlation of 0.81 suggests significant overlap in exposure. FMHI charges 0.55%/yr vs 0.09%/yr for MUNY.

Performance

FMHI vs. MUNY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Municipal High Income ETF (FMHI) and Vanguard New York Tax-Exempt Bond ETF (MUNY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FMHI achieves a 2.92% return, which is significantly higher than MUNY's 1.71% return.

FMHI

• 1D: -0.05%
• 1M: 1.62%
• YTD: 2.92%
• 6M: 3.16%
• 1Y: 7.99%
• 3Y*: 5.04%
• 5Y*: 0.83%
• 10Y*: —

MUNY

• 1D: -0.11%
• 1M: 1.41%
• YTD: 1.71%
• 6M: 1.78%
• 1Y: 6.39%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

FMHI vs. MUNY - Yearly Performance Comparison

	2026 (YTD)	2025
FMHI First Trust Municipal High Income ETF	2.92%	5.73%
MUNY Vanguard New York Tax-Exempt Bond ETF	1.71%	5.60%

Correlation

The correlation between FMHI and MUNY is 0.80, 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	0.80
Correlation (All Time) Calculated using the full available price history since May 22, 2025	0.81

The correlation between FMHI and MUNY has been stable across timeframes, ranging from 0.80 to 0.81 - a consistent structural relationship.

Return for Risk

FMHI vs. MUNY — Risk / Return Rank

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

FMHI

FMHI Risk / Return Rank: 83
FMHI Sharpe Ratio Rank: 86
FMHI Sortino Ratio Rank: 91
FMHI Omega Ratio Rank: 92
FMHI Calmar Ratio Rank: 72
FMHI Martin Ratio Rank: 74

MUNY

MUNY Risk / Return Rank: 68
MUNY Sharpe Ratio Rank: 75
MUNY Sortino Ratio Rank: 78
MUNY Omega Ratio Rank: 87
MUNY Calmar Ratio Rank: 52
MUNY Martin Ratio Rank: 50

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.

FMHI vs. MUNY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Municipal High Income ETF (FMHI) and Vanguard New York Tax-Exempt Bond ETF (MUNY). 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.

	FMHI	MUNY	Difference
Sharpe ratio: Return per unit of total volatility	2.62	2.22	+0.40
Sortino ratio: Return per unit of downside risk	4.08	3.19	+0.89
Omega ratio: Gain probability vs. loss probability	1.58	1.50	+0.08
Calmar ratio: Return relative to maximum drawdown	3.42	2.38	+1.04
Martin ratio: Return relative to average drawdown	12.86	7.97	+4.89

FMHI vs. MUNY - Sharpe Ratio Comparison

The current FMHI Sharpe Ratio is 2.62, which is comparable to the MUNY Sharpe Ratio of 2.22. The chart below compares the historical Sharpe Ratios of FMHI and MUNY, 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

FMHI vs. MUNY - Drawdown Comparison

The maximum FMHI drawdown since its inception was -18.83%, which is greater than MUNY's maximum drawdown of -2.70%. Use the drawdown chart below to compare losses from any high point for FMHI and MUNY.

Drawdown Indicators

	FMHI	MUNY	Difference
Max Drawdown Largest peak-to-trough decline	-18.83%	-2.70%	-16.13%
Max Drawdown (1Y) Largest decline over 1 year	-2.35%	-2.70%	+0.35%
Max Drawdown (3Y) Largest decline over 3 years	-6.17%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-18.83%	—	—
Current Drawdown Current decline from peak	-0.06%	-0.29%	+0.23%
Average Drawdown Average peak-to-trough decline	-4.49%	-0.65%	-3.84%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.62%	0.80%	-0.18%

Volatility

FMHI vs. MUNY - Volatility Comparison

First Trust Municipal High Income ETF (FMHI) and Vanguard New York Tax-Exempt Bond ETF (MUNY) have volatilities of 0.78% and 0.75%, 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

	FMHI	MUNY	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.78%	0.75%	+0.03%
Volatility (6M) Calculated over the trailing 6-month period	2.16%	2.35%	-0.19%
Volatility (1Y) Calculated over the trailing 1-year period	3.06%	2.90%	+0.16%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.77%	3.86%	+0.91%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.71%	3.86%	+1.85%

FMHI vs. MUNY - Expense Ratio Comparison

FMHI has a 0.55% expense ratio, which is higher than MUNY's 0.09% expense ratio.

Dividends

FMHI vs. MUNY - Dividend Comparison

FMHI's dividend yield for the trailing twelve months is around 4.23%, more than MUNY's 3.10% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
FMHI First Trust Municipal High Income ETF	4.23%	4.16%	4.01%	3.89%	3.57%	2.87%	3.13%	3.33%	3.46%	0.30%
MUNY Vanguard New York Tax-Exempt Bond ETF	3.10%	1.80%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FMHI and MUNY in my portfolio?

FMHI and MUNY have a correlation of 0.80, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FMHI or MUNY?

FMHI has higher volatility (0.78%) compared to MUNY (0.75%). In terms of maximum drawdown, FMHI dropped -18.83% vs MUNY's -2.70%.

Which ETF is better, FMHI or MUNY?

On 1-year performance, FMHI leads with 7.99% vs 6.39% for MUNY. On fees, MUNY is cheaper at 0.09% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FMHI or MUNY?

Over the 1-year period, FMHI has performed better with a 7.99% return vs 6.39%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FMHI or MUNY?

MUNY is cheaper with a 0.09% expense ratio, compared with 0.55% for FMHI.

Which ETF pays a higher dividend yield, FMHI or MUNY?

FMHI has the higher dividend yield at 4.23%, compared with 3.10% for MUNY.

What is the main difference between FMHI and MUNY?

They also come from different issuers: First Trust and Vanguard. Their fees differ too: 0.55% for FMHI and 0.09% for MUNY.

Which has better risk-adjusted returns?

FMHI currently has the higher Sharpe Ratio (2.62 vs 2.22), 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.