MFLX vs. MUNY

Last updated Jun 4, 2026

MFLX (First Trust Flexible Municipal High Income ETF) and MUNY (Vanguard New York Tax-Exempt Bond ETF) are both Municipal Bonds funds. MFLX is actively managed, while MUNY is passively managed. Over the past year, MFLX returned 9.22% vs 7.00% for MUNY. A 0.58 correlation means they provide meaningful diversification when combined. MFLX charges 0.88%/yr vs 0.09%/yr for MUNY.

Performance

MFLX vs. MUNY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Flexible Municipal High Income ETF (MFLX) and Vanguard New York Tax-Exempt Bond ETF (MUNY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MFLX achieves a 3.33% return, which is significantly higher than MUNY's 1.50% return.

MFLX

• 1D: -0.06%
• 1M: 1.21%
• YTD: 3.33%
• 6M: 3.84%
• 1Y: 9.22%
• 3Y*: 5.48%
• 5Y*: -0.03%
• 10Y*: —

MUNY

• 1D: -0.04%
• 1M: 0.62%
• YTD: 1.50%
• 6M: 1.95%
• 1Y: 7.00%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

MFLX vs. MUNY - Yearly Performance Comparison

	2026 (YTD)	2025
MFLX First Trust Flexible Municipal High Income ETF	3.33%	5.57%
MUNY Vanguard New York Tax-Exempt Bond ETF	1.50%	5.54%

Correlation

The correlation between MFLX and MUNY is 0.57, 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	0.57
Correlation (All Time) Calculated using the full available price history since May 23, 2025	0.58

The correlation between MFLX and MUNY has been stable across timeframes, ranging from 0.57 to 0.58 - a consistent structural relationship.

Return for Risk

MFLX vs. MUNY — Risk / Return Rank

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

MFLX

MFLX Risk / Return Rank: 71
MFLX Sharpe Ratio Rank: 69
MFLX Sortino Ratio Rank: 78
MFLX Omega Ratio Rank: 82
MFLX Calmar Ratio Rank: 60
MFLX Martin Ratio Rank: 66

MUNY

MUNY Risk / Return Rank: 57
MUNY Sharpe Ratio Rank: 52
MUNY Sortino Ratio Rank: 54
MUNY Omega Ratio Rank: 81
MUNY Calmar Ratio Rank: 53
MUNY Martin Ratio Rank: 45

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.

MFLX vs. MUNY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Flexible Municipal High Income ETF (MFLX) and Vanguard New York Tax-Exempt Bond ETF (MUNY). 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.

	MFLX	MUNY	Difference
Sharpe ratio: Return per unit of total volatility	2.27	1.79	+0.48
Sortino ratio: Return per unit of downside risk	3.47	2.59	+0.88
Omega ratio: Gain probability vs. loss probability	1.49	1.48	+0.01
Calmar ratio: Return relative to maximum drawdown	2.97	2.60	+0.37
Martin ratio: Return relative to average drawdown	11.95	7.27	+4.68
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

MFLX vs. MUNY - Sharpe Ratio Comparison

The current MFLX Sharpe Ratio is 2.27, which is comparable to the MUNY Sharpe Ratio of 1.79. The chart below compares the historical Sharpe Ratios of MFLX and MUNY, 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

	MFLX	MUNY	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.27	1.79	+0.48
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.00	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.19	1.77	-1.58

Drawdowns

MFLX vs. MUNY - Drawdown Comparison

The maximum MFLX drawdown since its inception was -26.76%, which is greater than MUNY's maximum drawdown of -2.70%. Use the drawdown chart below to compare losses from any high point for MFLX and MUNY.

Drawdown Indicators

	MFLX	MUNY	Difference
Max Drawdown Largest peak-to-trough decline	-26.76%	-2.70%	-24.06%
Max Drawdown (1Y) Largest decline over 1 year	-3.11%	-2.70%	-0.41%
Max Drawdown (3Y) Largest decline over 3 years	-8.18%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-25.88%	—	—
Current Drawdown Current decline from peak	-3.78%	-0.49%	-3.29%
Average Drawdown Average peak-to-trough decline	-8.17%	-0.66%	-7.51%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.77%	0.96%	-0.19%

Volatility

MFLX vs. MUNY - Volatility Comparison

First Trust Flexible Municipal High Income ETF (MFLX) has a higher volatility of 1.41% compared to Vanguard New York Tax-Exempt Bond ETF (MUNY) at 1.05%. This indicates that MFLX's price experiences larger fluctuations and is considered to be riskier than MUNY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MFLX	MUNY	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.41%	1.05%	+0.36%
Volatility (6M) Calculated over the trailing 6-month period	2.98%	2.30%	+0.68%
Volatility (1Y) Calculated over the trailing 1-year period	4.08%	3.93%	+0.15%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	10.36%	3.93%	+6.43%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	11.29%	3.93%	+7.36%

MFLX vs. MUNY - Expense Ratio Comparison

MFLX has a 0.88% expense ratio, which is higher than MUNY's 0.09% expense ratio.

Dividends

MFLX vs. MUNY - Dividend Comparison

MFLX's dividend yield for the trailing twelve months is around 4.08%, more than MUNY's 3.11% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
MFLX First Trust Flexible Municipal High Income ETF	4.08%	4.06%	3.81%	3.65%	4.27%	3.69%	3.21%	2.94%	3.74%	3.80%	0.98%
MUNY Vanguard New York Tax-Exempt Bond ETF	3.11%	1.80%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both MFLX and MUNY in my portfolio?

MFLX and MUNY have a correlation of 0.57, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MFLX or MUNY?

MFLX has higher volatility (1.41%) compared to MUNY (1.05%). In terms of maximum drawdown, MFLX dropped -26.76% vs MUNY's -2.70%.

Which ETF is better, MFLX or MUNY?

On 1-year performance, MFLX leads with 9.22% vs 7.00% for MUNY. On fees, MUNY is cheaper at 0.09% per year. On volatility, MUNY has been the lower-risk option at 1.05%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MFLX or MUNY?

Over the 1-year period, MFLX has performed better with a 9.22% return vs 7.00%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MFLX or MUNY?

MUNY is cheaper with a 0.09% expense ratio, compared with 0.88% for MFLX.

Which ETF pays a higher dividend yield, MFLX or MUNY?

MFLX has the higher dividend yield at 4.08%, compared with 3.11% for MUNY.

What is the main difference between MFLX and MUNY?

They also come from different issuers: First Trust and Vanguard. Their fees differ too: 0.88% for MFLX and 0.09% for MUNY.

Which has better risk-adjusted returns?

MFLX currently has the higher Sharpe Ratio (2.27 vs 1.79), 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.