FSAZX vs. DFNM

Last updated Aug 1, 2026

FSAZX (Fidelity Arizona Municipal Income Fund) and DFNM (Dimensional National Municipal Bond ETF) are both Municipal Bonds funds. Over the past 3 years, FSAZX returned 3.52%/yr vs 2.90%/yr for DFNM. Their 0.67 correlation means they have sometimes moved together and sometimes differently. FSAZX charges 0.55%/yr vs 0.17%/yr for DFNM.

Performance

FSAZX vs. DFNM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Fidelity Arizona Municipal Income Fund (FSAZX) and Dimensional National Municipal Bond ETF (DFNM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FSAZX achieves a 0.04% return, which is significantly lower than DFNM's 0.45% return.

FSAZX

• 1D: -0.17%
• 1M: -1.89%
• 6M: -0.53%
• YTD: 0.04%
• 1Y: 4.32%
• 3Y*: 3.52%
• 5Y*: 0.50%
• 10Y*: 1.70%
• ALL TIME*: 4.19%

DFNM

• 1D: -0.04%
• 1M: -1.20%
• 6M: -0.36%
• YTD: 0.45%
• 1Y: 3.46%
• 3Y*: 2.90%
• 5Y*: —
• 10Y*: —
• ALL TIME*: 1.20%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
DFNM Dimensional National Municipal Bond ETF	$10.08M	$8.87M	$8.49M
FSAZX Fidelity Arizona Municipal Income Fund	$0.00	$0.00	$0.00

FSAZX vs. DFNM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
FSAZX Fidelity Arizona Municipal Income Fund	0.04%	4.96%	2.06%	6.04%	-9.40%	0.43%
DFNM Dimensional National Municipal Bond ETF	0.45%	3.87%	1.19%	3.97%	-4.02%	0.40%

Correlation

The correlation between FSAZX and DFNM is 0.70, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.70
Correlation (3Y) Balances recent behavior with more history.	0.68
Correlation (All Time) Calculated using the full available price history since Nov 16, 2021	0.67

The correlation between FSAZX and DFNM has been stable across timeframes, ranging from 0.67 to 0.70 - a consistent structural relationship.

Return for Risk

FSAZX vs. DFNM — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

FSAZX

FSAZX Risk / Return Rank: 67
FSAZX Sharpe Ratio Rank: 80
FSAZX Sortino Ratio Rank: 80
FSAZX Omega Ratio Rank: 88
FSAZX Calmar Ratio Rank: 46
FSAZX Martin Ratio Rank: 39

DFNM

DFNM Risk / Return Rank: 77
DFNM Sharpe Ratio Rank: 88
DFNM Sortino Ratio Rank: 87
DFNM Omega Ratio Rank: 92
DFNM Calmar Ratio Rank: 58
DFNM Martin Ratio Rank: 57

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

FSAZX vs. DFNM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Fidelity Arizona Municipal Income Fund (FSAZX) and Dimensional National Municipal Bond ETF (DFNM). 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.

	FSAZX	DFNM	Difference
Sharpe ratio: Return per unit of total volatility	1.94	2.12	-0.18
Sortino ratio: Return per unit of downside risk	2.83	2.95	-0.13
Omega ratio: Gain probability vs. loss probability	1.46	1.46	0.00
Calmar ratio: Return relative to maximum drawdown	1.83	2.07	-0.24
Martin ratio: Return relative to average drawdown	5.86	6.89	-1.03

FSAZX vs. DFNM - Sharpe Ratio Comparison

The current FSAZX Sharpe Ratio is 1.94, which is comparable to the DFNM Sharpe Ratio of 2.12. The chart below compares the historical Sharpe Ratios of FSAZX and DFNM, 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

FSAZX vs. DFNM - Drawdown Comparison

The maximum FSAZX drawdown since its inception was -14.01%, which is greater than DFNM's maximum drawdown of -6.99%. Use the drawdown chart below to compare losses from any high point for FSAZX and DFNM.

Drawdown Indicators

	FSAZX	DFNM	Difference
Max Drawdown Largest peak-to-trough decline	-14.01%	-6.99%	-7.02%
Max Drawdown (1Y) Largest decline over 1 year	-2.81%	-1.84%	-0.97%
Max Drawdown (3Y) Largest decline over 3 years	-4.25%	-2.79%	-1.46%
Max Drawdown (5Y) Largest decline over 5 years	-14.01%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-14.01%	—	—
Current Drawdown Current decline from peak	-1.89%	-1.20%	-0.69%
Average Drawdown Average peak-to-trough decline	-1.80%	-1.91%	+0.11%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.88%	0.55%	+0.33%

Volatility

FSAZX vs. DFNM - Volatility Comparison

Fidelity Arizona Municipal Income Fund (FSAZX) has a higher volatility of 0.92% compared to Dimensional National Municipal Bond ETF (DFNM) at 0.67%. This indicates that FSAZX's price experiences larger fluctuations and is considered to be riskier than DFNM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FSAZX	DFNM	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.92%	0.67%	+0.25%
Volatility (6M) Calculated over the trailing 6-month period	2.15%	1.43%	+0.72%
Volatility (1Y) Calculated over the trailing 1-year period	2.66%	1.80%	+0.86%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.63%	2.52%	+1.11%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.78%	2.52%	+1.26%

FSAZX vs. DFNM - Expense Ratio Comparison

FSAZX has a 0.55% expense ratio, which is higher than DFNM's 0.17% expense ratio.

Dividends

FSAZX vs. DFNM - Dividend Comparison

FSAZX's dividend yield for the trailing twelve months is around 2.48%, less than DFNM's 2.97% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DFNM Dimensional National Municipal Bond ETF	2.97%	2.94%	2.74%	2.39%	1.16%	0.05%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
FSAZX Fidelity Arizona Municipal Income Fund	2.48%	3.47%	2.82%	2.43%	1.52%	2.00%	2.54%	2.52%	2.55%	3.19%	3.19%	3.73%

Frequently Asked Questions

Can I hold both FSAZX and DFNM in my portfolio?

FSAZX and DFNM have a correlation of 0.70, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FSAZX or DFNM?

FSAZX has higher volatility (0.92%) compared to DFNM (0.67%). In terms of maximum drawdown, FSAZX dropped -14.01% vs DFNM's -6.99%.

Which has better risk-adjusted returns?

DFNM currently has the higher Sharpe Ratio (2.12 vs 1.94), 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.