FTABX vs. FHIGX

Last updated Jun 24, 2026

FTABX (Fidelity Tax-Free Bond Fund) and FHIGX (Fidelity Municipal Income Fund) are both Municipal Bonds funds from Fidelity. Over the past 10 years, FTABX returned 2.24%/yr vs 2.15%/yr for FHIGX. Their correlation of 0.93 suggests significant overlap in exposure. FTABX charges 0.25%/yr vs 0.45%/yr for FHIGX.

Performance

FTABX vs. FHIGX - Performance Comparison

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

Returns By Period

The year-to-date returns for both stocks are quite close, with FTABX having a 1.61% return and FHIGX slightly lower at 1.54%. Both investments have delivered pretty close results over the past 10 years, with FTABX having a 2.24% annualized return and FHIGX not far behind at 2.15%.

FTABX

• 1D: -0.09%
• 1M: 1.56%
• YTD: 1.61%
• 6M: 2.08%
• 1Y: 7.06%
• 3Y*: 4.30%
• 5Y*: 1.03%
• 10Y*: 2.24%

FHIGX

• 1D: -0.08%
• 1M: 1.66%
• YTD: 1.54%
• 6M: 1.97%
• 1Y: 7.07%
• 3Y*: 4.21%
• 5Y*: 0.88%
• 10Y*: 2.15%

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

FTABX vs. FHIGX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FTABX Fidelity Tax-Free Bond Fund	1.61%	5.60%	1.54%	7.51%	-10.74%	2.20%	4.80%	8.58%	0.67%	6.45%
FHIGX Fidelity Municipal Income Fund	1.54%	5.37%	1.68%	7.14%	-10.98%	2.43%	4.42%	8.51%	0.81%	6.69%

Correlation

The correlation between FTABX and FHIGX is 0.90, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.90
Correlation (3Y) Calculated over the trailing 3-year period	0.93
Correlation (5Y) Calculated over the trailing 5-year period	0.94
Correlation (10Y) Calculated over the trailing 10-year period	0.92
Correlation (All Time) Calculated using the full available price history since Apr 10, 2001	0.93

The correlation between FTABX and FHIGX has been stable across timeframes, ranging from 0.90 to 0.94 - a consistent structural relationship.

Return for Risk

FTABX vs. FHIGX — Risk / Return Rank

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

FTABX

FTABX Risk / Return Rank: 70
FTABX Sharpe Ratio Rank: 88
FTABX Sortino Ratio Rank: 91
FTABX Omega Ratio Rank: 92
FTABX Calmar Ratio Rank: 42
FTABX Martin Ratio Rank: 39

FHIGX

FHIGX Risk / Return Rank: 67
FHIGX Sharpe Ratio Rank: 85
FHIGX Sortino Ratio Rank: 87
FHIGX Omega Ratio Rank: 90
FHIGX Calmar Ratio Rank: 37
FHIGX Martin Ratio Rank: 35

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.

FTABX vs. FHIGX - Risk-Adjusted Trends Comparison

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

	FTABX	FHIGX	Difference
Sharpe ratio: Return per unit of total volatility	2.66	2.55	+0.11
Sortino ratio: Return per unit of downside risk	4.18	3.89	+0.30
Omega ratio: Gain probability vs. loss probability	1.66	1.62	+0.04
Calmar ratio: Return relative to maximum drawdown	2.35	2.20	+0.15
Martin ratio: Return relative to average drawdown	7.97	7.41	+0.57

FTABX vs. FHIGX - Sharpe Ratio Comparison

The current FTABX Sharpe Ratio is 2.66, which is comparable to the FHIGX Sharpe Ratio of 2.55. The chart below compares the historical Sharpe Ratios of FTABX and FHIGX, 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

FTABX vs. FHIGX - Drawdown Comparison

The maximum FTABX drawdown since its inception was -16.14%, smaller than the maximum FHIGX drawdown of -32.80%. Use the drawdown chart below to compare losses from any high point for FTABX and FHIGX.

Drawdown Indicators

	FTABX	FHIGX	Difference
Max Drawdown Largest peak-to-trough decline	-16.14%	-32.80%	+16.66%
Max Drawdown (1Y) Largest decline over 1 year	-3.11%	-3.27%	+0.16%
Max Drawdown (3Y) Largest decline over 3 years	-5.99%	-6.05%	+0.06%
Max Drawdown (5Y) Largest decline over 5 years	-16.14%	-16.18%	+0.04%
Max Drawdown (10Y) Largest decline over 10 years	-16.14%	-16.18%	+0.04%
Current Drawdown Current decline from peak	-0.60%	-0.72%	+0.12%
Average Drawdown Average peak-to-trough decline	-2.12%	-4.53%	+2.41%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.91%	0.97%	-0.06%

Volatility

FTABX vs. FHIGX - Volatility Comparison

Fidelity Tax-Free Bond Fund (FTABX) and Fidelity Municipal Income Fund (FHIGX) have volatilities of 0.76% and 0.78%, 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

	FTABX	FHIGX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.76%	0.78%	-0.02%
Volatility (6M) Calculated over the trailing 6-month period	2.13%	2.18%	-0.05%
Volatility (1Y) Calculated over the trailing 1-year period	2.74%	2.82%	-0.08%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.16%	4.16%	0.00%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.29%	4.25%	+0.04%

FTABX vs. FHIGX - Expense Ratio Comparison

FTABX has a 0.25% expense ratio, which is lower than FHIGX's 0.45% expense ratio.

Dividends

FTABX vs. FHIGX - Dividend Comparison

FTABX's dividend yield for the trailing twelve months is around 3.21%, more than FHIGX's 3.08% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FHIGX Fidelity Municipal Income Fund	3.08%	4.00%	2.98%	2.83%	1.81%	2.64%	2.79%	3.16%	3.66%	4.45%	4.88%	3.65%
FTABX Fidelity Tax-Free Bond Fund	3.21%	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 FTABX and FHIGX in my portfolio?

With a correlation of 0.90, FTABX and FHIGX move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, FTABX or FHIGX?

FHIGX has higher volatility (0.78%) compared to FTABX (0.76%). In terms of maximum drawdown, FTABX dropped -16.14% vs FHIGX's -32.80%.

Which has better risk-adjusted returns?

FTABX currently has the higher Sharpe Ratio (2.66 vs 2.55), 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.