MHF vs. NMS

Last updated Jun 4, 2026

MHF (Western Asset Municipal High Income Fund Inc) and NMS (Nuveen Minnesota Quality Municipal Income Fund) are both Municipal Bonds funds. Over the past 10 years, MHF returned 2.60%/yr vs 1.97%/yr for NMS. At a 0.16 correlation, their price movements are largely independent. MHF charges 0.04%/yr vs 0.03%/yr for NMS.

Performance

MHF vs. NMS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Western Asset Municipal High Income Fund Inc (MHF) and Nuveen Minnesota Quality Municipal Income Fund (NMS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MHF achieves a 2.65% return, which is significantly lower than NMS's 7.31% return. Over the past 10 years, MHF has outperformed NMS with an annualized return of 2.60%, while NMS has yielded a comparatively lower 1.97% annualized return.

MHF

• 1D: -0.86%
• 1M: 1.08%
• YTD: 2.65%
• 6M: 1.83%
• 1Y: 5.32%
• 3Y*: 8.31%
• 5Y*: 1.42%
• 10Y*: 2.60%

NMS

• 1D: 0.12%
• 1M: 0.92%
• YTD: 7.31%
• 6M: 5.39%
• 1Y: 15.23%
• 3Y*: 9.90%
• 5Y*: -0.31%
• 10Y*: 1.97%

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

MHF vs. NMS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
MHF Western Asset Municipal High Income Fund Inc	2.65%	7.18%	11.99%	4.53%	-17.68%	10.42%	3.00%	13.93%	-2.27%	7.54%
NMS Nuveen Minnesota Quality Municipal Income Fund	7.31%	2.10%	19.59%	1.57%	-21.89%	5.47%	5.80%	25.72%	-13.31%	-1.58%

Correlation

The correlation between MHF and NMS is 0.28, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.28
Correlation (3Y) Calculated over the trailing 3-year period	0.33
Correlation (5Y) Calculated over the trailing 5-year period	0.25
Correlation (10Y) Calculated over the trailing 10-year period	0.19
Correlation (All Time) Calculated using the full available price history since Oct 9, 2014	0.16

The correlation between MHF and NMS shifts across timeframes, from 0.16 (all time) to 0.33 (3 years), reflecting how their relationship changes across market environments.

Return for Risk

MHF vs. NMS — Risk / Return Rank

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

MHF

MHF Risk / Return Rank: 5
MHF Sharpe Ratio Rank: 5
MHF Sortino Ratio Rank: 5
MHF Omega Ratio Rank: 6
MHF Calmar Ratio Rank: 6
MHF Martin Ratio Rank: 5

NMS

NMS Risk / Return Rank: 62
NMS Sharpe Ratio Rank: 42
NMS Sortino Ratio Rank: 46
NMS Omega Ratio Rank: 46
NMS Calmar Ratio Rank: 94
NMS Martin Ratio Rank: 82

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.

MHF vs. NMS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Western Asset Municipal High Income Fund Inc (MHF) and Nuveen Minnesota Quality Municipal Income Fund (NMS). 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.

	MHF	NMS	Difference
Sharpe ratio: Return per unit of total volatility	0.38	1.91	-1.53
Sortino ratio: Return per unit of downside risk	0.67	2.85	-2.18
Omega ratio: Gain probability vs. loss probability	1.09	1.37	-0.28
Calmar ratio: Return relative to maximum drawdown	0.54	5.38	-4.85
Martin ratio: Return relative to average drawdown	0.90	15.35	-14.46
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

MHF vs. NMS - Sharpe Ratio Comparison

The current MHF Sharpe Ratio is 0.38, which is lower than the NMS Sharpe Ratio of 1.91. The chart below compares the historical Sharpe Ratios of MHF and NMS, 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

	MHF	NMS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.38	1.91	-1.53
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.10	-0.02	+0.13
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.19	0.14	+0.06
Sharpe Ratio (All Time) Calculated using the full available price history	0.31	0.23	+0.08

Drawdowns

MHF vs. NMS - Drawdown Comparison

The maximum MHF drawdown since its inception was -29.95%, smaller than the maximum NMS drawdown of -38.76%. Use the drawdown chart below to compare losses from any high point for MHF and NMS.

Drawdown Indicators

	MHF	NMS	Difference
Max Drawdown Largest peak-to-trough decline	-29.95%	-38.76%	+8.81%
Max Drawdown (1Y) Largest decline over 1 year	-9.96%	-2.84%	-7.12%
Max Drawdown (3Y) Largest decline over 3 years	-13.32%	-17.28%	+3.96%
Max Drawdown (5Y) Largest decline over 5 years	-26.72%	-38.76%	+12.04%
Max Drawdown (10Y) Largest decline over 10 years	-26.72%	-38.76%	+12.04%
Current Drawdown Current decline from peak	-5.64%	-3.69%	-1.95%
Average Drawdown Average peak-to-trough decline	-6.34%	-10.71%	+4.37%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.95%	0.99%	+4.96%

Volatility

MHF vs. NMS - Volatility Comparison

Western Asset Municipal High Income Fund Inc (MHF) and Nuveen Minnesota Quality Municipal Income Fund (NMS) have volatilities of 2.78% and 2.65%, 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

	MHF	NMS	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.78%	2.65%	+0.13%
Volatility (6M) Calculated over the trailing 6-month period	6.79%	5.25%	+1.54%
Volatility (1Y) Calculated over the trailing 1-year period	13.96%	8.02%	+5.94%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.92%	13.43%	+0.49%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	13.47%	14.58%	-1.11%

MHF vs. NMS - Expense Ratio Comparison

MHF has a 0.04% expense ratio, which is higher than NMS's 0.03% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

MHF vs. NMS - Dividend Comparison

MHF's dividend yield for the trailing twelve months is around 5.92%, less than NMS's 6.69% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MHF Western Asset Municipal High Income Fund Inc	5.92%	5.93%	5.65%	3.78%	3.72%	3.23%	3.75%	4.02%	4.42%	4.14%	4.53%	4.45%
NMS Nuveen Minnesota Quality Municipal Income Fund	6.69%	7.29%	6.05%	4.03%	5.24%	4.19%	3.93%	4.05%	5.52%	5.20%	4.68%	5.60%

Frequently Asked Questions

Can I hold both MHF and NMS in my portfolio?

MHF and NMS have a correlation of 0.28, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MHF or NMS?

MHF has higher volatility (2.78%) compared to NMS (2.65%). In terms of maximum drawdown, MHF dropped -29.95% vs NMS's -38.76%.

Which has better risk-adjusted returns?

NMS currently has the higher Sharpe Ratio (1.91 vs 0.38), 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.