FSTIX vs. FIHBX

Last updated Jun 3, 2026

FSTIX (Federated Hermes Short-Term Income Fund) and FIHBX (Federated Hermes Institutional High Yield Bond Fund) are both mutual funds - FSTIX is a Short-Term Bond fund managed by Federated, while FIHBX is a High Yield Bonds fund managed by Federated. Over the past 10 years, FSTIX returned 2.29%/yr vs 5.05%/yr for FIHBX. At a 0.27 correlation, their price movements are largely independent. FSTIX charges 0.66%/yr vs 0.50%/yr for FIHBX.

Performance

FSTIX vs. FIHBX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Federated Hermes Short-Term Income Fund (FSTIX) and Federated Hermes Institutional High Yield Bond Fund (FIHBX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FSTIX achieves a 0.91% return, which is significantly lower than FIHBX's 1.27% return. Over the past 10 years, FSTIX has underperformed FIHBX with an annualized return of 2.29%, while FIHBX has yielded a comparatively higher 5.05% annualized return.

FSTIX

• 1D: 0.00%
• 1M: 0.25%
• YTD: 0.91%
• 6M: 1.40%
• 1Y: 4.49%
• 3Y*: 4.88%
• 5Y*: 2.29%
• 10Y*: 2.29%

FIHBX

• 1D: 0.00%
• 1M: 0.38%
• YTD: 1.27%
• 6M: 2.35%
• 1Y: 6.62%
• 3Y*: 8.32%
• 5Y*: 3.49%
• 10Y*: 5.05%

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

FSTIX vs. FIHBX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FSTIX Federated Hermes Short-Term Income Fund	0.91%	5.92%	4.60%	4.57%	-3.67%	-0.55%	3.48%	4.32%	1.45%	1.76%
FIHBX Federated Hermes Institutional High Yield Bond Fund	1.27%	8.59%	6.40%	13.17%	-12.64%	3.92%	5.99%	15.01%	-2.80%	7.19%

Correlation

The correlation between FSTIX and FIHBX is 0.59, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.59
Correlation (3Y) Calculated over the trailing 3-year period	0.48
Correlation (5Y) Calculated over the trailing 5-year period	0.43
Correlation (10Y) Calculated over the trailing 10-year period	0.33
Correlation (All Time) Calculated using the full available price history since Nov 5, 2002	0.27

Over the past year, FSTIX and FIHBX have become more correlated (0.59) than their long-term average of 0.27, meaning their price movements have been converging.

Return for Risk

FSTIX vs. FIHBX — Risk / Return Rank

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

FSTIX

FSTIX Risk / Return Rank: 88
FSTIX Sharpe Ratio Rank: 67
FSTIX Sortino Ratio Rank: 94
FSTIX Omega Ratio Rank: 93
FSTIX Calmar Ratio Rank: 91
FSTIX Martin Ratio Rank: 94

FIHBX

FIHBX Risk / Return Rank: 67
FIHBX Sharpe Ratio Rank: 44
FIHBX Sortino Ratio Rank: 69
FIHBX Omega Ratio Rank: 79
FIHBX Calmar Ratio Rank: 59
FIHBX Martin Ratio Rank: 83

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.

FSTIX vs. FIHBX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Federated Hermes Short-Term Income Fund (FSTIX) and Federated Hermes Institutional High Yield Bond Fund (FIHBX). 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.

	FSTIX	FIHBX	Difference
Sharpe ratio Return per unit of total volatility	2.40	1.96	+0.44
Sortino ratio Return per unit of downside risk	4.90	3.46	+1.44
Omega ratio Gain probability vs. loss probability	1.71	1.52	+0.19
Calmar ratio Return relative to maximum drawdown	4.78	2.96	+1.82
Martin ratio Return relative to average drawdown	20.55	15.61	+4.94
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FSTIX vs. FIHBX - Sharpe Ratio Comparison

The current FSTIX Sharpe Ratio is 2.40, which is comparable to the FIHBX Sharpe Ratio of 1.96. The chart below compares the historical Sharpe Ratios of FSTIX and FIHBX, 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

	FSTIX	FIHBX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.40	1.96	+0.44
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	1.10	0.68	+0.42
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	1.29	0.88	+0.41
Sharpe Ratio (All Time) Calculated using the full available price history	1.59	1.36	+0.23

Drawdowns

FSTIX vs. FIHBX - Drawdown Comparison

The maximum FSTIX drawdown since its inception was -7.59%, smaller than the maximum FIHBX drawdown of -31.05%. Use the drawdown chart below to compare losses from any high point for FSTIX and FIHBX.

Drawdown Indicators

	FSTIX	FIHBX	Difference
Max Drawdown Largest peak-to-trough decline	-7.59%	-31.05%	+23.46%
Max Drawdown (1Y) Largest decline over 1 year	-1.05%	-2.45%	+1.40%
Max Drawdown (3Y) Largest decline over 3 years	-1.05%	-3.60%	+2.55%
Max Drawdown (5Y) Largest decline over 5 years	-5.55%	-16.35%	+10.80%
Max Drawdown (10Y) Largest decline over 10 years	-5.55%	-21.67%	+16.12%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-0.93%	-2.30%	+1.37%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.24%	0.46%	-0.22%

Volatility

FSTIX vs. FIHBX - Volatility Comparison

The current volatility for Federated Hermes Short-Term Income Fund (FSTIX) is 0.57%, while Federated Hermes Institutional High Yield Bond Fund (FIHBX) has a volatility of 1.08%. This indicates that FSTIX experiences smaller price fluctuations and is considered to be less risky than FIHBX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FSTIX	FIHBX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.57%	1.08%	-0.51%
Volatility (6M) Calculated over the trailing 6-month period	1.41%	2.90%	-1.49%
Volatility (1Y) Calculated over the trailing 1-year period	1.88%	3.40%	-1.52%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.09%	5.19%	-3.10%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.78%	5.76%	-3.98%

FSTIX vs. FIHBX - Expense Ratio Comparison

FSTIX has a 0.66% expense ratio, which is higher than FIHBX's 0.50% expense ratio.

Dividends

FSTIX vs. FIHBX - Dividend Comparison

FSTIX's dividend yield for the trailing twelve months is around 4.52%, less than FIHBX's 6.44% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FIHBX Federated Hermes Institutional High Yield Bond Fund	6.44%	6.29%	5.94%	5.93%	4.58%	4.25%	5.14%	5.79%	6.24%	5.55%	5.75%	6.46%
FSTIX Federated Hermes Short-Term Income Fund	4.52%	4.55%	3.53%	2.02%	1.16%	0.84%	1.66%	2.33%	2.27%	1.74%	1.40%	1.22%

Frequently Asked Questions

Can I hold both FSTIX and FIHBX in my portfolio?

FSTIX and FIHBX have a correlation of 0.59, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FSTIX or FIHBX?

FIHBX has higher volatility (1.08%) compared to FSTIX (0.57%). In terms of maximum drawdown, FSTIX dropped -7.59% vs FIHBX's -31.05%.

Which has better risk-adjusted returns?

FSTIX currently has the higher Sharpe Ratio (2.40 vs 1.96), 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.