FSTFX vs. FTABX

Last updated Aug 1, 2026

FSTFX (Fidelity Limited Term Municipal Income Fund) and FTABX (Fidelity Tax-Free Bond Fund) are both Municipal Bonds funds from Fidelity. Over the past 10 years, FSTFX returned 1.57%/yr vs 2.06%/yr for FTABX. Their 0.75 correlation means they have sometimes moved together and sometimes differently. FSTFX charges 0.37%/yr vs 0.25%/yr for FTABX.

Performance

FSTFX vs. FTABX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Fidelity Limited Term Municipal Income Fund (FSTFX) and Fidelity Tax-Free Bond Fund (FTABX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FSTFX achieves a 0.40% return, which is significantly higher than FTABX's 0.14% return. Over the past 10 years, FSTFX has underperformed FTABX with an annualized return of 1.57%, while FTABX has yielded a comparatively higher 2.06% annualized return.

FSTFX

• 1D: -0.09%
• 1M: -0.75%
• 6M: -0.27%
• YTD: 0.40%
• 1Y: 2.01%
• 3Y*: 3.52%
• 5Y*: 1.25%
• 10Y*: 1.57%
• ALL TIME*: 3.05%

FTABX

• 1D: -0.18%
• 1M: -2.06%
• 6M: -0.66%
• YTD: 0.14%
• 1Y: 4.93%
• 3Y*: 3.63%
• 5Y*: 0.52%
• 10Y*: 2.06%
• ALL TIME*: 3.95%

*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)
FSTFX Fidelity Limited Term Municipal Income Fund	$0.00	$0.00	$0.00
FTABX Fidelity Tax-Free Bond Fund	$0.00	$0.00	$0.00

FSTFX vs. FTABX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FSTFX Fidelity Limited Term Municipal Income Fund	0.40%	5.36%	2.36%	3.85%	-4.90%	0.15%	3.23%	4.19%	1.28%	2.35%
FTABX Fidelity Tax-Free Bond Fund	0.14%	5.60%	1.54%	7.51%	-10.74%	2.20%	4.80%	8.58%	0.67%	6.45%

Correlation

The correlation between FSTFX and FTABX is 0.71, 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.	0.71
Correlation (3Y) Balances recent behavior with more history.	0.79
Correlation (5Y) Shows whether the relationship held over a longer period.	0.81
Correlation (10Y) Provides a long-term view across more market conditions.	0.77
Correlation (All Time) Calculated using the full available price history since Apr 10, 2001	0.75

The correlation between FSTFX and FTABX shifts across timeframes, from 0.71 (1 year) to 0.81 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

FSTFX vs. FTABX — Risk / Return Rank

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

FSTFX

FSTFX Risk / Return Rank: 63
FSTFX Sharpe Ratio Rank: 75
FSTFX Sortino Ratio Rank: 79
FSTFX Omega Ratio Rank: 89
FSTFX Calmar Ratio Rank: 41
FSTFX Martin Ratio Rank: 33

FTABX

FTABX Risk / Return Rank: 71
FTABX Sharpe Ratio Rank: 85
FTABX Sortino Ratio Rank: 85
FTABX Omega Ratio Rank: 89
FTABX Calmar Ratio Rank: 54
FTABX Martin Ratio Rank: 43

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.

FSTFX vs. FTABX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Fidelity Limited Term Municipal Income Fund (FSTFX) and Fidelity Tax-Free Bond Fund (FTABX). 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.

	FSTFX	FTABX	Difference
Sharpe ratio: Return per unit of total volatility	1.72	2.03	-0.31
Sortino ratio: Return per unit of downside risk	2.71	3.01	-0.30
Omega ratio: Gain probability vs. loss probability	1.47	1.47	0.00
Calmar ratio: Return relative to maximum drawdown	1.62	1.88	-0.26
Martin ratio: Return relative to average drawdown	4.65	6.04	-1.39

FSTFX vs. FTABX - Sharpe Ratio Comparison

The current FSTFX Sharpe Ratio is 1.72, which is comparable to the FTABX Sharpe Ratio of 2.03. The chart below compares the historical Sharpe Ratios of FSTFX and FTABX, 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

FSTFX vs. FTABX - Drawdown Comparison

The maximum FSTFX drawdown since its inception was -9.50%, smaller than the maximum FTABX drawdown of -16.14%. Use the drawdown chart below to compare losses from any high point for FSTFX and FTABX.

Drawdown Indicators

	FSTFX	FTABX	Difference
Max Drawdown Largest peak-to-trough decline	-9.50%	-16.14%	+6.64%
Max Drawdown (1Y) Largest decline over 1 year	-1.49%	-3.11%	+1.62%
Max Drawdown (3Y) Largest decline over 3 years	-2.00%	-5.18%	+3.18%
Max Drawdown (5Y) Largest decline over 5 years	-7.65%	-16.07%	+8.42%
Max Drawdown (10Y) Largest decline over 10 years	-7.65%	-16.14%	+8.49%
Current Drawdown Current decline from peak	-0.92%	-2.06%	+1.14%
Average Drawdown Average peak-to-trough decline	-0.97%	-2.11%	+1.14%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.52%	0.97%	-0.45%

Volatility

FSTFX vs. FTABX - Volatility Comparison

The current volatility for Fidelity Limited Term Municipal Income Fund (FSTFX) is 0.40%, while Fidelity Tax-Free Bond Fund (FTABX) has a volatility of 0.99%. This indicates that FSTFX experiences smaller price fluctuations and is considered to be less risky than FTABX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FSTFX	FTABX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.40%	0.99%	-0.59%
Volatility (6M) Calculated over the trailing 6-month period	1.11%	2.34%	-1.23%
Volatility (1Y) Calculated over the trailing 1-year period	1.40%	2.88%	-1.48%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.94%	4.18%	-2.24%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.05%	4.29%	-2.24%

FSTFX vs. FTABX - Expense Ratio Comparison

FSTFX has a 0.37% expense ratio, which is higher than FTABX's 0.25% expense ratio.

Dividends

FSTFX vs. FTABX - Dividend Comparison

FSTFX's dividend yield for the trailing twelve months is around 2.29%, less than FTABX's 3.00% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FSTFX Fidelity Limited Term Municipal Income Fund	2.29%	2.99%	2.03%	1.70%	0.92%	1.08%	1.58%	1.92%	1.65%	1.56%	1.60%	1.62%
FTABX Fidelity Tax-Free Bond Fund	3.00%	4.18%	2.81%	2.90%	2.16%	2.27%	2.64%	2.94%	3.01%	3.49%	4.22%	3.29%

Frequently Asked Questions

Can I hold both FSTFX and FTABX in my portfolio?

FSTFX and FTABX have a correlation of 0.71, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FSTFX or FTABX?

FTABX has higher volatility (0.99%) compared to FSTFX (0.40%). In terms of maximum drawdown, FSTFX dropped -9.50% vs FTABX's -16.14%.

Which has better risk-adjusted returns?

FTABX currently has the higher Sharpe Ratio (2.03 vs 1.72), 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.