MMIBX vs. AFTEX

Last updated Jun 4, 2026

MMIBX (MFS Municipal Income Fund) and AFTEX (American Funds Tax Exempt Bond Fund) are both Municipal Bonds funds. Over the past 10 years, MMIBX returned 1.53%/yr vs 2.18%/yr for AFTEX. Their correlation of 0.80 suggests significant overlap in exposure. MMIBX charges 1.45%/yr vs 0.50%/yr for AFTEX.

Performance

MMIBX vs. AFTEX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in MFS Municipal Income Fund (MMIBX) and American Funds Tax Exempt Bond Fund (AFTEX). 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 MMIBX having a 1.63% return and AFTEX slightly lower at 1.58%. Over the past 10 years, MMIBX has underperformed AFTEX with an annualized return of 1.53%, while AFTEX has yielded a comparatively higher 2.18% annualized return.

MMIBX

• 1D: 0.24%
• 1M: 0.87%
• YTD: 1.63%
• 6M: 1.88%
• 1Y: 7.08%
• 3Y*: 3.63%
• 5Y*: 0.04%
• 10Y*: 1.53%

AFTEX

• 1D: 0.16%
• 1M: 0.74%
• YTD: 1.58%
• 6M: 1.93%
• 1Y: 7.03%
• 3Y*: 4.16%
• 5Y*: 0.93%
• 10Y*: 2.18%

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

MMIBX vs. AFTEX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
MMIBX MFS Municipal Income Fund	1.63%	3.56%	2.42%	5.45%	-12.27%	2.35%	3.28%	7.40%	0.38%	5.00%
AFTEX American Funds Tax Exempt Bond Fund	1.58%	4.88%	2.28%	5.96%	-9.68%	1.87%	4.73%	7.42%	0.78%	5.83%

Correlation

The correlation between MMIBX and AFTEX is 0.87, 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	0.87
Correlation (3Y) Calculated over the trailing 3-year period	0.91
Correlation (5Y) Calculated over the trailing 5-year period	0.92
Correlation (10Y) Calculated over the trailing 10-year period	0.89
Correlation (All Time) Calculated using the full available price history since Jan 3, 1990	0.80

The correlation between MMIBX and AFTEX shifts across timeframes, from 0.80 (all time) to 0.92 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

MMIBX vs. AFTEX — Risk / Return Rank

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

MMIBX

MMIBX Risk / Return Rank: 56
MMIBX Sharpe Ratio Rank: 56
MMIBX Sortino Ratio Rank: 69
MMIBX Omega Ratio Rank: 81
MMIBX Calmar Ratio Rank: 38
MMIBX Martin Ratio Rank: 35

AFTEX

AFTEX Risk / Return Rank: 70
AFTEX Sharpe Ratio Rank: 83
AFTEX Sortino Ratio Rank: 88
AFTEX Omega Ratio Rank: 91
AFTEX Calmar Ratio Rank: 45
AFTEX Martin Ratio Rank: 42

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.

MMIBX vs. AFTEX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for MFS Municipal Income Fund (MMIBX) and American Funds Tax Exempt Bond Fund (AFTEX). 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.

	MMIBX	AFTEX	Difference
Sharpe ratio: Return per unit of total volatility	2.20	2.68	-0.48
Sortino ratio: Return per unit of downside risk	3.46	4.22	-0.75
Omega ratio: Gain probability vs. loss probability	1.53	1.66	-0.13
Calmar ratio: Return relative to maximum drawdown	2.32	2.56	-0.24
Martin ratio: Return relative to average drawdown	7.82	8.94	-1.12
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

MMIBX vs. AFTEX - Sharpe Ratio Comparison

The current MMIBX Sharpe Ratio is 2.20, which is comparable to the AFTEX Sharpe Ratio of 2.68. The chart below compares the historical Sharpe Ratios of MMIBX and AFTEX, 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

	MMIBX	AFTEX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.20	2.68	-0.48
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.01	0.25	-0.24
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.35	0.58	-0.22
Sharpe Ratio (All Time) Calculated using the full available price history	0.82	1.43	-0.61

Drawdowns

MMIBX vs. AFTEX - Drawdown Comparison

The maximum MMIBX drawdown since its inception was -17.40%, which is greater than AFTEX's maximum drawdown of -14.55%. Use the drawdown chart below to compare losses from any high point for MMIBX and AFTEX.

Drawdown Indicators

	MMIBX	AFTEX	Difference
Max Drawdown Largest peak-to-trough decline	-17.40%	-14.55%	-2.85%
Max Drawdown (1Y) Largest decline over 1 year	-3.01%	-2.76%	-0.25%
Max Drawdown (3Y) Largest decline over 3 years	-7.23%	-5.21%	-2.02%
Max Drawdown (5Y) Largest decline over 5 years	-17.19%	-14.55%	-2.64%
Max Drawdown (10Y) Largest decline over 10 years	-17.19%	-14.55%	-2.64%
Current Drawdown Current decline from peak	-1.01%	-0.42%	-0.59%
Average Drawdown Average peak-to-trough decline	-2.81%	-1.66%	-1.15%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.89%	0.79%	+0.10%

Volatility

MMIBX vs. AFTEX - Volatility Comparison

MFS Municipal Income Fund (MMIBX) has a higher volatility of 1.24% compared to American Funds Tax Exempt Bond Fund (AFTEX) at 1.07%. This indicates that MMIBX's price experiences larger fluctuations and is considered to be riskier than AFTEX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MMIBX	AFTEX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.24%	1.07%	+0.17%
Volatility (6M) Calculated over the trailing 6-month period	2.34%	2.01%	+0.33%
Volatility (1Y) Calculated over the trailing 1-year period	3.18%	2.65%	+0.53%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.41%	3.76%	+0.65%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.34%	3.79%	+0.55%

MMIBX vs. AFTEX - Expense Ratio Comparison

MMIBX has a 1.45% expense ratio, which is higher than AFTEX's 0.50% expense ratio.

Dividends

MMIBX vs. AFTEX - Dividend Comparison

MMIBX's dividend yield for the trailing twelve months is around 2.96%, less than AFTEX's 3.01% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AFTEX American Funds Tax Exempt Bond Fund	3.01%	3.98%	2.90%	2.22%	1.75%	2.31%	2.43%	2.83%	2.86%	3.30%	2.90%	3.21%
MMIBX MFS Municipal Income Fund	2.96%	3.81%	2.51%	2.05%	1.42%	1.45%	1.86%	2.45%	2.68%	2.67%	2.87%	2.98%

Frequently Asked Questions

Can I hold both MMIBX and AFTEX in my portfolio?

MMIBX and AFTEX have a correlation of 0.87, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MMIBX or AFTEX?

MMIBX has higher volatility (1.24%) compared to AFTEX (1.07%). In terms of maximum drawdown, MMIBX dropped -17.40% vs AFTEX's -14.55%.

Which has better risk-adjusted returns?

AFTEX currently has the higher Sharpe Ratio (2.68 vs 2.20), 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.