FMY vs. FFA

Last updated Jun 5, 2026

FMY (First Trust Mortgage Income Fund) and FFA (First Trust Enhanced Equity Income Fund) are both mutual funds - FMY is a Mortgage Backed Securities fund managed by First Trust, while FFA is a Derivative Income fund actively managed by First Trust. Over the past 10 years, FMY returned 3.90%/yr vs 13.62%/yr for FFA. At a 0.15 correlation, their price movements are largely independent. FMY charges 0.03%/yr vs 1.22%/yr for FFA.

Performance

FMY vs. FFA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Mortgage Income Fund (FMY) and First Trust Enhanced Equity Income Fund (FFA). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FMY achieves a -1.94% return, which is significantly lower than FFA's 6.61% return. Over the past 10 years, FMY has underperformed FFA with an annualized return of 3.90%, while FFA has yielded a comparatively higher 13.62% annualized return.

FMY

• 1D: 0.73%
• 1M: -1.94%
• YTD: -1.94%
• 6M: -1.01%
• 1Y: 3.15%
• 3Y*: 8.73%
• 5Y*: 3.46%
• 10Y*: 3.90%

FFA

• 1D: 0.57%
• 1M: 3.60%
• YTD: 6.61%
• 6M: 9.59%
• 1Y: 25.12%
• 3Y*: 18.55%
• 5Y*: 10.51%
• 10Y*: 13.62%

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

FMY vs. FFA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FMY First Trust Mortgage Income Fund	-1.94%	8.63%	7.04%	16.08%	-13.03%	3.12%	4.68%	12.92%	-3.40%	7.24%
FFA First Trust Enhanced Equity Income Fund	6.61%	14.23%	21.46%	24.73%	-20.26%	28.69%	10.82%	43.35%	-13.93%	28.97%

Correlation

The correlation between FMY and FFA is 0.20, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.20
Correlation (3Y) Calculated over the trailing 3-year period	0.11
Correlation (5Y) Calculated over the trailing 5-year period	0.12
Correlation (10Y) Calculated over the trailing 10-year period	0.12
Correlation (All Time) Calculated using the full available price history since May 27, 2005	0.15

Return for Risk

FMY vs. FFA — Risk / Return Rank

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

FMY

FMY Risk / Return Rank: 5
FMY Sharpe Ratio Rank: 5
FMY Sortino Ratio Rank: 5
FMY Omega Ratio Rank: 5
FMY Calmar Ratio Rank: 6
FMY Martin Ratio Rank: 6

FFA

FFA Risk / Return Rank: 52
FFA Sharpe Ratio Rank: 53
FFA Sortino Ratio Rank: 52
FFA Omega Ratio Rank: 53
FFA Calmar Ratio Rank: 44
FFA Martin Ratio Rank: 60

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.

FMY vs. FFA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Mortgage Income Fund (FMY) and First Trust Enhanced Equity Income Fund (FFA). 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.

	FMY	FFA	Difference
Sharpe ratio: Return per unit of total volatility	0.34	2.11	-1.77
Sortino ratio: Return per unit of downside risk	0.54	2.98	-2.44
Omega ratio: Gain probability vs. loss probability	1.07	1.39	-0.33
Calmar ratio: Return relative to maximum drawdown	0.44	2.49	-2.04
Martin ratio: Return relative to average drawdown	1.51	11.66	-10.15
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FMY vs. FFA - Sharpe Ratio Comparison

The current FMY Sharpe Ratio is 0.34, which is lower than the FFA Sharpe Ratio of 2.11. The chart below compares the historical Sharpe Ratios of FMY and FFA, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	FMY	FFA	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.34	2.11	-1.77
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.27	0.61	-0.34
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.33	0.69	-0.36
Sharpe Ratio (All Time) Calculated using the full available price history	0.31	0.43	-0.12

Drawdowns

FMY vs. FFA - Drawdown Comparison

The maximum FMY drawdown since its inception was -27.98%, smaller than the maximum FFA drawdown of -57.51%. Use the drawdown chart below to compare losses from any high point for FMY and FFA.

Drawdown Indicators

	FMY	FFA	Difference
Max Drawdown Largest peak-to-trough decline	-27.98%	-57.51%	+29.53%
Max Drawdown (1Y) Largest decline over 1 year	-7.13%	-10.15%	+3.02%
Max Drawdown (3Y) Largest decline over 3 years	-7.13%	-19.94%	+12.81%
Max Drawdown (5Y) Largest decline over 5 years	-19.94%	-29.96%	+10.02%
Max Drawdown (10Y) Largest decline over 10 years	-19.94%	-44.35%	+24.41%
Current Drawdown Current decline from peak	-3.97%	-0.39%	-3.58%
Average Drawdown Average peak-to-trough decline	-6.81%	-8.42%	+1.61%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.10%	2.16%	-0.06%

Volatility

FMY vs. FFA - Volatility Comparison

First Trust Mortgage Income Fund (FMY) and First Trust Enhanced Equity Income Fund (FFA) have volatilities of 3.08% and 2.94%, 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

	FMY	FFA	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.08%	2.94%	+0.14%
Volatility (6M) Calculated over the trailing 6-month period	7.31%	9.41%	-2.10%
Volatility (1Y) Calculated over the trailing 1-year period	9.23%	11.95%	-2.72%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.08%	17.34%	-4.26%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	11.77%	19.71%	-7.94%

FMY vs. FFA - Expense Ratio Comparison

FMY has a 0.03% expense ratio, which is lower than FFA's 1.22% expense ratio.

Dividends

FMY vs. FFA - Dividend Comparison

FMY's dividend yield for the trailing twelve months is around 6.86%, more than FFA's 6.56% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FFA First Trust Enhanced Equity Income Fund	6.56%	6.70%	6.59%	6.90%	7.99%	5.92%	6.47%	6.61%	8.82%	6.83%	7.07%	7.12%
FMY First Trust Mortgage Income Fund	6.86%	6.91%	7.95%	6.64%	5.89%	5.21%	5.18%	5.14%	5.66%	5.45%	6.17%	6.43%

Frequently Asked Questions

Can I hold both FMY and FFA in my portfolio?

FMY and FFA have a correlation of 0.20, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FMY or FFA?

FMY has higher volatility (3.08%) compared to FFA (2.94%). In terms of maximum drawdown, FMY dropped -27.98% vs FFA's -57.51%.

Which has better risk-adjusted returns?

FFA currently has the higher Sharpe Ratio (2.11 vs 0.34), 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.