FTHY vs. FMY

Last updated Jun 23, 2026

FTHY (First Trust High Yield Opportunities 2027 Term Fund) and FMY (First Trust Mortgage Income Fund) are both mutual funds - FTHY is a High Yield Bonds fund managed by First Trust, while FMY is a Mortgage Backed Securities fund managed by First Trust. Over the past 5 years, FTHY returned 2.77%/yr vs 3.54%/yr for FMY. At a 0.11 correlation, their price movements are largely independent. FTHY charges 0.02%/yr vs 0.03%/yr for FMY.

Performance

FTHY vs. FMY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust High Yield Opportunities 2027 Term Fund (FTHY) and First Trust Mortgage Income Fund (FMY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FTHY achieves a 1.53% return, which is significantly higher than FMY's -1.22% return.

FTHY

• 1D: -0.22%
• 1M: 0.39%
• YTD: 1.53%
• 6M: 1.82%
• 1Y: 4.12%
• 3Y*: 11.21%
• 5Y*: 2.77%
• 10Y*: —

FMY

• 1D: -0.09%
• 1M: 0.95%
• YTD: -1.22%
• 6M: 1.22%
• 1Y: 4.07%
• 3Y*: 9.42%
• 5Y*: 3.54%
• 10Y*: 3.97%

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

FTHY vs. FMY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
FTHY First Trust High Yield Opportunities 2027 Term Fund	1.53%	7.80%	15.71%	14.65%	-26.09%	7.63%	4.66%
FMY First Trust Mortgage Income Fund	-1.22%	8.63%	7.04%	16.08%	-13.03%	3.12%	4.65%

Correlation

The correlation between FTHY and FMY is 0.24, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.24
Correlation (3Y) Calculated over the trailing 3-year period	0.16
Correlation (5Y) Calculated over the trailing 5-year period	0.09
Correlation (All Time) Calculated using the full available price history since Jun 26, 2020	0.11

The correlation between FTHY and FMY shifts across timeframes, from 0.09 (5 years) to 0.24 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

FTHY vs. FMY — Risk / Return Rank

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

FTHY

FTHY Risk / Return Rank: 7
FTHY Sharpe Ratio Rank: 7
FTHY Sortino Ratio Rank: 7
FTHY Omega Ratio Rank: 7
FTHY Calmar Ratio Rank: 8
FTHY Martin Ratio Rank: 8

FMY

FMY Risk / Return Rank: 6
FMY Sharpe Ratio Rank: 6
FMY Sortino Ratio Rank: 6
FMY Omega Ratio Rank: 6
FMY Calmar Ratio Rank: 7
FMY Martin Ratio Rank: 7

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.

FTHY vs. FMY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust High Yield Opportunities 2027 Term Fund (FTHY) and First Trust Mortgage Income Fund (FMY). 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.

	FTHY	FMY	Difference
Sharpe ratio: Return per unit of total volatility	0.56	0.44	+0.12
Sortino ratio: Return per unit of downside risk	0.83	0.68	+0.15
Omega ratio: Gain probability vs. loss probability	1.10	1.08	+0.02
Calmar ratio: Return relative to maximum drawdown	0.76	0.57	+0.19
Martin ratio: Return relative to average drawdown	2.03	1.82	+0.21

FTHY vs. FMY - Sharpe Ratio Comparison

The current FTHY Sharpe Ratio is 0.56, which is comparable to the FMY Sharpe Ratio of 0.44. The chart below compares the historical Sharpe Ratios of FTHY and FMY, 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

FTHY vs. FMY - Drawdown Comparison

The maximum FTHY drawdown since its inception was -31.17%, which is greater than FMY's maximum drawdown of -27.98%. Use the drawdown chart below to compare losses from any high point for FTHY and FMY.

Drawdown Indicators

	FTHY	FMY	Difference
Max Drawdown Largest peak-to-trough decline	-31.17%	-27.98%	-3.19%
Max Drawdown (1Y) Largest decline over 1 year	-5.44%	-7.13%	+1.69%
Max Drawdown (3Y) Largest decline over 3 years	-8.70%	-7.13%	-1.57%
Max Drawdown (5Y) Largest decline over 5 years	-31.17%	-19.94%	-11.23%
Max Drawdown (10Y) Largest decline over 10 years	—	-19.94%	—
Current Drawdown Current decline from peak	-1.28%	-3.26%	+1.98%
Average Drawdown Average peak-to-trough decline	-10.12%	-6.80%	-3.32%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.04%	2.24%	-0.20%

Volatility

FTHY vs. FMY - Volatility Comparison

First Trust High Yield Opportunities 2027 Term Fund (FTHY) has a higher volatility of 2.80% compared to First Trust Mortgage Income Fund (FMY) at 2.47%. This indicates that FTHY's price experiences larger fluctuations and is considered to be riskier than FMY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FTHY	FMY	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.80%	2.47%	+0.33%
Volatility (6M) Calculated over the trailing 6-month period	5.70%	7.35%	-1.65%
Volatility (1Y) Calculated over the trailing 1-year period	7.44%	9.29%	-1.85%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	12.86%	13.10%	-0.24%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	13.24%	11.78%	+1.46%

FTHY vs. FMY - Expense Ratio Comparison

FTHY has a 0.02% expense ratio, which is lower than FMY's 0.03% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

FTHY vs. FMY - Dividend Comparison

FTHY's dividend yield for the trailing twelve months is around 11.09%, more than FMY's 6.81% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FMY First Trust Mortgage Income Fund	6.81%	6.91%	7.95%	6.64%	5.89%	5.21%	5.18%	5.14%	5.66%	5.45%	6.17%	6.43%
FTHY First Trust High Yield Opportunities 2027 Term Fund	11.09%	10.66%	10.70%	10.22%	11.85%	7.83%	2.94%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FTHY and FMY in my portfolio?

FTHY and FMY have a correlation of 0.24, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FTHY or FMY?

FTHY has higher volatility (2.80%) compared to FMY (2.47%). In terms of maximum drawdown, FTHY dropped -31.17% vs FMY's -27.98%.

Which has better risk-adjusted returns?

FTHY currently has the higher Sharpe Ratio (0.56 vs 0.44), 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.