FMUSX vs. NMI

Last updated Jun 24, 2026

FMUSX (Federated Hermes Municipal Ultra Short Fund) and NMI (Nuveen Municipal Income Fund, Inc.) are both Municipal Bonds funds. Over the past 10 years, FMUSX returned 1.64%/yr vs 2.51%/yr for NMI. At a 0.08 correlation, their price movements are largely independent. FMUSX charges 0.36%/yr vs 0.72%/yr for NMI.

Performance

FMUSX vs. NMI - Performance Comparison

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

Returns By Period

In the year-to-date period, FMUSX achieves a 0.72% return, which is significantly lower than NMI's 13.22% return. Over the past 10 years, FMUSX has underperformed NMI with an annualized return of 1.64%, while NMI has yielded a comparatively higher 2.51% annualized return.

FMUSX

• 1D: 0.00%
• 1M: 0.43%
• YTD: 0.72%
• 6M: 0.98%
• 1Y: 1.93%
• 3Y*: 3.05%
• 5Y*: 1.98%
• 10Y*: 1.64%

NMI

• 1D: 4.56%
• 1M: 2.87%
• YTD: 13.22%
• 6M: 12.77%
• 1Y: 16.78%
• 3Y*: 10.06%
• 5Y*: 2.78%
• 10Y*: 2.51%

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

FMUSX vs. NMI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
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%
NMI Nuveen Municipal Income Fund, Inc.	13.22%	10.52%	7.03%	1.90%	-15.09%	3.86%	4.70%	16.02%	-8.07%	7.49%

Correlation

The correlation between FMUSX and NMI is 0.10, 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	0.10
Correlation (3Y) Calculated over the trailing 3-year period	0.19
Correlation (5Y) Calculated over the trailing 5-year period	0.16
Correlation (10Y) Calculated over the trailing 10-year period	0.13
Correlation (All Time) Calculated using the full available price history since Oct 24, 2000	0.08

The correlation between FMUSX and NMI shifts across timeframes, from 0.08 (all time) to 0.19 (3 years), reflecting how their relationship changes across market environments.

Return for Risk

FMUSX vs. NMI — Risk / Return Rank

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

FMUSX

FMUSX Risk / Return Rank: 94
FMUSX Sharpe Ratio Rank: 80
FMUSX Sortino Ratio Rank: 98
FMUSX Omega Ratio Rank: 99
FMUSX Calmar Ratio Rank: 96
FMUSX Martin Ratio Rank: 97

NMI

NMI Risk / Return Rank: 18
NMI Sharpe Ratio Rank: 14
NMI Sortino Ratio Rank: 17
NMI Omega Ratio Rank: 27
NMI Calmar Ratio Rank: 20
NMI Martin Ratio Rank: 14

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.

FMUSX vs. NMI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Federated Hermes Municipal Ultra Short Fund (FMUSX) and Nuveen Municipal Income Fund, Inc. (NMI). 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.

	FMUSX	NMI	Difference
Sharpe ratio: Return per unit of total volatility	2.43	0.98	+1.45
Sortino ratio: Return per unit of downside risk	5.89	1.58	+4.32
Omega ratio: Gain probability vs. loss probability	2.48	1.25	+1.23
Calmar ratio: Return relative to maximum drawdown	5.93	1.54	+4.39
Martin ratio: Return relative to average drawdown	24.70	3.60	+21.10

FMUSX vs. NMI - Sharpe Ratio Comparison

The current FMUSX Sharpe Ratio is 2.43, which is higher than the NMI Sharpe Ratio of 0.98. The chart below compares the historical Sharpe Ratios of FMUSX and NMI, 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

FMUSX vs. NMI - Drawdown Comparison

The maximum FMUSX drawdown since its inception was -2.49%, smaller than the maximum NMI drawdown of -28.92%. Use the drawdown chart below to compare losses from any high point for FMUSX and NMI.

Drawdown Indicators

	FMUSX	NMI	Difference
Max Drawdown Largest peak-to-trough decline	-2.49%	-28.92%	+26.43%
Max Drawdown (1Y) Largest decline over 1 year	-0.40%	-10.96%	+10.56%
Max Drawdown (3Y) Largest decline over 3 years	-2.06%	-14.54%	+12.48%
Max Drawdown (5Y) Largest decline over 5 years	-2.06%	-28.92%	+26.86%
Max Drawdown (10Y) Largest decline over 10 years	-2.49%	-28.92%	+26.43%
Current Drawdown Current decline from peak	0.00%	-1.45%	+1.45%
Average Drawdown Average peak-to-trough decline	-0.16%	-5.92%	+5.76%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.66%	4.67%	-4.01%

Volatility

FMUSX vs. NMI - Volatility Comparison

The current volatility for Federated Hermes Municipal Ultra Short Fund (FMUSX) is 0.34%, while Nuveen Municipal Income Fund, Inc. (NMI) has a volatility of 7.95%. This indicates that FMUSX experiences smaller price fluctuations and is considered to be less risky than NMI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FMUSX	NMI	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.34%	7.95%	-7.61%
Volatility (6M) Calculated over the trailing 6-month period	0.71%	15.00%	-14.29%
Volatility (1Y) Calculated over the trailing 1-year period	0.97%	17.26%	-16.29%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.91%	14.80%	-12.89%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.46%	15.07%	-13.61%

FMUSX vs. NMI - Expense Ratio Comparison

FMUSX has a 0.36% expense ratio, which is lower than NMI's 0.72% expense ratio.

Dividends

FMUSX vs. NMI - Dividend Comparison

FMUSX's dividend yield for the trailing twelve months is around 1.71%, less than NMI's 4.15% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
NMI Nuveen Municipal Income Fund, Inc.	4.15%	4.59%	4.63%	4.04%	3.51%	3.22%	3.53%	4.15%	5.12%	4.21%	4.45%	4.28%

Frequently Asked Questions

Can I hold both FMUSX and NMI in my portfolio?

FMUSX and NMI have a correlation of 0.10, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FMUSX or NMI?

NMI has higher volatility (7.95%) compared to FMUSX (0.34%). In terms of maximum drawdown, FMUSX dropped -2.49% vs NMI's -28.92%.

Which has better risk-adjusted returns?

FMUSX currently has the higher Sharpe Ratio (2.43 vs 0.98), 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.