FNYTX vs. DFSMX

Last updated Jun 4, 2026

FNYTX (Franklin New York Tax Free Income Fund) and DFSMX (DFA Short Term Municipal Bond Portfolio) are both Municipal Bonds funds. Over the past 10 years, FNYTX returned 1.77%/yr vs 1.26%/yr for DFSMX. At a 0.39 correlation, their price movements are largely independent. FNYTX charges 0.66%/yr vs 0.20%/yr for DFSMX.

Performance

FNYTX vs. DFSMX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Franklin New York Tax Free Income Fund (FNYTX) and DFA Short Term Municipal Bond Portfolio (DFSMX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FNYTX achieves a 2.02% return, which is significantly higher than DFSMX's 0.95% return. Over the past 10 years, FNYTX has outperformed DFSMX with an annualized return of 1.77%, while DFSMX has yielded a comparatively lower 1.26% annualized return.

FNYTX

• 1D: 0.20%
• 1M: 0.91%
• YTD: 2.02%
• 6M: 2.44%
• 1Y: 8.34%
• 3Y*: 4.08%
• 5Y*: 0.57%
• 10Y*: 1.77%

DFSMX

• 1D: 0.00%
• 1M: 0.20%
• YTD: 0.95%
• 6M: 1.17%
• 1Y: 2.48%
• 3Y*: 2.71%
• 5Y*: 1.70%
• 10Y*: 1.26%

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

FNYTX vs. DFSMX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FNYTX Franklin New York Tax Free Income Fund	2.02%	3.90%	2.47%	6.93%	-12.00%	1.85%	4.75%	7.56%	0.43%	2.45%
DFSMX DFA Short Term Municipal Bond Portfolio	0.95%	2.30%	2.84%	2.98%	-0.36%	-0.11%	0.83%	1.62%	1.22%	1.15%

Correlation

The correlation between FNYTX and DFSMX is 0.18, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.18
Correlation (3Y) Calculated over the trailing 3-year period	0.26
Correlation (5Y) Calculated over the trailing 5-year period	0.36
Correlation (10Y) Calculated over the trailing 10-year period	0.31
Correlation (All Time) Calculated using the full available price history since Aug 23, 2002	0.39

Over the past year, the correlation between FNYTX and DFSMX has dropped to 0.18 - well below their long-term average of 0.39, suggesting their price drivers have been diverging.

Return for Risk

FNYTX vs. DFSMX — Risk / Return Rank

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

FNYTX

FNYTX Risk / Return Rank: 66
FNYTX Sharpe Ratio Rank: 73
FNYTX Sortino Ratio Rank: 81
FNYTX Omega Ratio Rank: 85
FNYTX Calmar Ratio Rank: 49
FNYTX Martin Ratio Rank: 44

DFSMX

DFSMX Risk / Return Rank: 99
DFSMX Sharpe Ratio Rank: 99
DFSMX Sortino Ratio Rank: 99
DFSMX Omega Ratio Rank: 100
DFSMX Calmar Ratio Rank: 99
DFSMX Martin Ratio Rank: 100

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.

FNYTX vs. DFSMX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Franklin New York Tax Free Income Fund (FNYTX) and DFA Short Term Municipal Bond Portfolio (DFSMX). 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.

	FNYTX	DFSMX	Difference
Sharpe ratio: Return per unit of total volatility	2.49	4.16	-1.67
Sortino ratio: Return per unit of downside risk	3.83	8.56	-4.73
Omega ratio: Gain probability vs. loss probability	1.58	4.46	-2.87
Calmar ratio: Return relative to maximum drawdown	2.67	12.85	-10.19
Martin ratio: Return relative to average drawdown	9.22	76.74	-67.52
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FNYTX vs. DFSMX - Sharpe Ratio Comparison

The current FNYTX Sharpe Ratio is 2.49, which is lower than the DFSMX Sharpe Ratio of 4.16. The chart below compares the historical Sharpe Ratios of FNYTX and DFSMX, 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

	FNYTX	DFSMX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.49	4.16	-1.67
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.12	2.18	-2.06
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.40	1.64	-1.24
Sharpe Ratio (All Time) Calculated using the full available price history	1.00	1.79	-0.78

Drawdowns

FNYTX vs. DFSMX - Drawdown Comparison

The maximum FNYTX drawdown since its inception was -18.90%, which is greater than DFSMX's maximum drawdown of -2.66%. Use the drawdown chart below to compare losses from any high point for FNYTX and DFSMX.

Drawdown Indicators

	FNYTX	DFSMX	Difference
Max Drawdown Largest peak-to-trough decline	-18.90%	-2.66%	-16.24%
Max Drawdown (1Y) Largest decline over 1 year	-3.10%	-0.20%	-2.90%
Max Drawdown (3Y) Largest decline over 3 years	-7.29%	-0.49%	-6.80%
Max Drawdown (5Y) Largest decline over 5 years	-17.45%	-1.66%	-15.79%
Max Drawdown (10Y) Largest decline over 10 years	-17.45%	-1.69%	-15.76%
Current Drawdown Current decline from peak	-0.17%	0.00%	-0.17%
Average Drawdown Average peak-to-trough decline	-2.53%	-0.23%	-2.30%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.89%	0.03%	+0.86%

Volatility

FNYTX vs. DFSMX - Volatility Comparison

Franklin New York Tax Free Income Fund (FNYTX) has a higher volatility of 1.30% compared to DFA Short Term Municipal Bond Portfolio (DFSMX) at 0.14%. This indicates that FNYTX's price experiences larger fluctuations and is considered to be riskier than DFSMX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FNYTX	DFSMX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.30%	0.14%	+1.16%
Volatility (6M) Calculated over the trailing 6-month period	2.45%	0.37%	+2.08%
Volatility (1Y) Calculated over the trailing 1-year period	3.33%	0.61%	+2.72%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.65%	0.79%	+3.86%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.41%	0.77%	+3.64%

FNYTX vs. DFSMX - Expense Ratio Comparison

FNYTX has a 0.66% expense ratio, which is higher than DFSMX's 0.20% expense ratio.

Dividends

FNYTX vs. DFSMX - Dividend Comparison

FNYTX's dividend yield for the trailing twelve months is around 3.51%, more than DFSMX's 2.36% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DFSMX DFA Short Term Municipal Bond Portfolio	2.36%	2.08%	2.80%	1.94%	0.63%	0.19%	0.83%	1.22%	1.11%	0.95%	0.94%	0.95%
FNYTX Franklin New York Tax Free Income Fund	3.51%	4.57%	3.85%	2.78%	2.84%	2.45%	2.64%	3.41%	3.38%	3.43%	3.63%	3.60%

Frequently Asked Questions

Can I hold both FNYTX and DFSMX in my portfolio?

FNYTX and DFSMX have a correlation of 0.18, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FNYTX or DFSMX?

FNYTX has higher volatility (1.30%) compared to DFSMX (0.14%). In terms of maximum drawdown, FNYTX dropped -18.90% vs DFSMX's -2.66%.

Which has better risk-adjusted returns?

DFSMX currently has the higher Sharpe Ratio (4.16 vs 2.49), 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.