FMUAX vs. VTMFX

Last updated Jun 23, 2026

FMUAX (Federated Hermes Municipal and Stock Advantage Fund) and VTMFX (Vanguard Tax-Managed Balanced Fund Admiral Shares) are both Diversified Portfolio funds. Over the past 10 years, FMUAX returned 6.17%/yr vs 8.63%/yr for VTMFX. Their correlation of 0.90 suggests significant overlap in exposure. FMUAX charges 1.00%/yr vs 0.05%/yr for VTMFX.

Performance

FMUAX vs. VTMFX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Federated Hermes Municipal and Stock Advantage Fund (FMUAX) and Vanguard Tax-Managed Balanced Fund Admiral Shares (VTMFX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FMUAX achieves a 6.13% return, which is significantly higher than VTMFX's 5.44% return. Over the past 10 years, FMUAX has underperformed VTMFX with an annualized return of 6.17%, while VTMFX has yielded a comparatively higher 8.63% annualized return.

FMUAX

• 1D: 0.42%
• 1M: 2.13%
• YTD: 6.13%
• 6M: 6.19%
• 1Y: 16.49%
• 3Y*: 9.79%
• 5Y*: 5.10%
• 10Y*: 6.17%

VTMFX

• 1D: 0.57%
• 1M: 0.96%
• YTD: 5.44%
• 6M: 5.27%
• 1Y: 15.82%
• 3Y*: 11.93%
• 5Y*: 7.23%
• 10Y*: 8.63%

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

FMUAX vs. VTMFX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FMUAX Federated Hermes Municipal and Stock Advantage Fund	6.13%	9.00%	8.70%	9.81%	-10.68%	10.32%	8.48%	15.16%	-5.24%	11.09%
VTMFX Vanguard Tax-Managed Balanced Fund Admiral Shares	5.44%	11.28%	12.17%	15.55%	-12.69%	13.10%	13.31%	18.01%	-1.40%	12.61%

Correlation

The correlation between FMUAX and VTMFX is 0.77, 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	0.77
Correlation (3Y) Calculated over the trailing 3-year period	0.82
Correlation (5Y) Calculated over the trailing 5-year period	0.88
Correlation (10Y) Calculated over the trailing 10-year period	0.90
Correlation (All Time) Calculated using the full available price history since Sep 24, 2003	0.90

The correlation between FMUAX and VTMFX shifts across timeframes, from 0.77 (1 year) to 0.90 (10 years), reflecting how their relationship changes across market environments.

Return for Risk

FMUAX vs. VTMFX — Risk / Return Rank

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

FMUAX

FMUAX Risk / Return Rank: 94
FMUAX Sharpe Ratio Rank: 97
FMUAX Sortino Ratio Rank: 96
FMUAX Omega Ratio Rank: 91
FMUAX Calmar Ratio Rank: 88
FMUAX Martin Ratio Rank: 95

VTMFX

VTMFX Risk / Return Rank: 76
VTMFX Sharpe Ratio Rank: 81
VTMFX Sortino Ratio Rank: 79
VTMFX Omega Ratio Rank: 79
VTMFX Calmar Ratio Rank: 64
VTMFX Martin Ratio Rank: 79

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.

FMUAX vs. VTMFX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Federated Hermes Municipal and Stock Advantage Fund (FMUAX) and Vanguard Tax-Managed Balanced Fund Admiral Shares (VTMFX). 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.

	FMUAX	VTMFX	Difference
Sharpe ratio: Return per unit of total volatility	3.29	2.45	+0.84
Sortino ratio: Return per unit of downside risk	5.09	3.45	+1.64
Omega ratio: Gain probability vs. loss probability	1.64	1.47	+0.17
Calmar ratio: Return relative to maximum drawdown	4.16	2.93	+1.22
Martin ratio: Return relative to average drawdown	19.98	13.72	+6.25

FMUAX vs. VTMFX - Sharpe Ratio Comparison

The current FMUAX Sharpe Ratio is 3.29, which is higher than the VTMFX Sharpe Ratio of 2.45. The chart below compares the historical Sharpe Ratios of FMUAX and VTMFX, 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

FMUAX vs. VTMFX - Drawdown Comparison

The maximum FMUAX drawdown since its inception was -22.43%, smaller than the maximum VTMFX drawdown of -28.49%. Use the drawdown chart below to compare losses from any high point for FMUAX and VTMFX.

Drawdown Indicators

	FMUAX	VTMFX	Difference
Max Drawdown Largest peak-to-trough decline	-22.43%	-28.49%	+6.06%
Max Drawdown (1Y) Largest decline over 1 year	-4.94%	-5.38%	+0.44%
Max Drawdown (3Y) Largest decline over 3 years	-10.18%	-10.61%	+0.43%
Max Drawdown (5Y) Largest decline over 5 years	-15.93%	-17.40%	+1.47%
Max Drawdown (10Y) Largest decline over 10 years	-21.46%	-21.87%	+0.41%
Current Drawdown Current decline from peak	-0.12%	-0.56%	+0.44%
Average Drawdown Average peak-to-trough decline	-2.75%	-3.54%	+0.79%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.96%	1.15%	-0.19%

Volatility

FMUAX vs. VTMFX - Volatility Comparison

The current volatility for Federated Hermes Municipal and Stock Advantage Fund (FMUAX) is 2.21%, while Vanguard Tax-Managed Balanced Fund Admiral Shares (VTMFX) has a volatility of 2.50%. This indicates that FMUAX experiences smaller price fluctuations and is considered to be less risky than VTMFX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FMUAX	VTMFX	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.21%	2.50%	-0.29%
Volatility (6M) Calculated over the trailing 6-month period	5.03%	5.21%	-0.18%
Volatility (1Y) Calculated over the trailing 1-year period	6.24%	6.45%	-0.21%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	7.21%	8.57%	-1.36%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	8.13%	9.15%	-1.02%

FMUAX vs. VTMFX - Expense Ratio Comparison

FMUAX has a 1.00% expense ratio, which is higher than VTMFX's 0.05% expense ratio.

Dividends

FMUAX vs. VTMFX - Dividend Comparison

FMUAX's dividend yield for the trailing twelve months is around 1.24%, less than VTMFX's 2.12% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FMUAX Federated Hermes Municipal and Stock Advantage Fund	1.24%	1.23%	2.01%	2.53%	2.25%	4.56%	2.12%	4.00%	7.98%	2.17%	2.36%	2.80%
VTMFX Vanguard Tax-Managed Balanced Fund Admiral Shares	2.12%	2.14%	2.08%	1.94%	1.85%	1.38%	1.72%	2.05%	2.22%	2.00%	2.13%	2.06%

Frequently Asked Questions

Can I hold both FMUAX and VTMFX in my portfolio?

FMUAX and VTMFX have a correlation of 0.77, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FMUAX or VTMFX?

VTMFX has higher volatility (2.50%) compared to FMUAX (2.21%). In terms of maximum drawdown, FMUAX dropped -22.43% vs VTMFX's -28.49%.

Which has better risk-adjusted returns?

FMUAX currently has the higher Sharpe Ratio (3.29 vs 2.45), 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.