RFM vs. RFMZ

Last updated Jun 24, 2026

RFM (RiverNorth Flexible Municipal Income Fund) and RFMZ (RiverNorth Flexible Municipal Income Fund II Inc.) are both mutual funds - RFM is a High Yield Muni fund managed by RiverNorth, while RFMZ is a Municipal Bonds fund managed by RiverNorth. Over the past 5 years, RFM returned -1.41%/yr vs -0.75%/yr for RFMZ. A 0.52 correlation means they provide meaningful diversification when combined. RFM charges 5.15%/yr vs 3.27%/yr for RFMZ.

Performance

RFM vs. RFMZ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in RiverNorth Flexible Municipal Income Fund (RFM) and RiverNorth Flexible Municipal Income Fund II Inc. (RFMZ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, RFM achieves a 8.51% return, which is significantly lower than RFMZ's 10.29% return.

RFM

• 1D: 0.10%
• 1M: 2.25%
• YTD: 8.51%
• 6M: 8.16%
• 1Y: 13.46%
• 3Y*: 5.83%
• 5Y*: -1.41%
• 10Y*: —

RFMZ

• 1D: 0.07%
• 1M: 4.16%
• YTD: 10.29%
• 6M: 9.95%
• 1Y: 15.68%
• 3Y*: 6.75%
• 5Y*: -0.75%
• 10Y*: —

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

RFM vs. RFMZ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
RFM RiverNorth Flexible Municipal Income Fund	8.51%	1.59%	3.24%	6.50%	-22.85%	14.06%
RFMZ RiverNorth Flexible Municipal Income Fund II Inc.	10.29%	2.22%	10.11%	4.54%	-26.41%	3.72%

Correlation

The correlation between RFM and RFMZ is 0.61, 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	0.61
Correlation (3Y) Calculated over the trailing 3-year period	0.60
Correlation (5Y) Calculated over the trailing 5-year period	0.54
Correlation (All Time) Calculated using the full available price history since Feb 24, 2021	0.52

The correlation between RFM and RFMZ has been stable across timeframes, ranging from 0.52 to 0.61 - a consistent structural relationship.

Return for Risk

RFM vs. RFMZ — Risk / Return Rank

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

RFM

RFM Risk / Return Rank: 33
RFM Sharpe Ratio Rank: 29
RFM Sortino Ratio Rank: 30
RFM Omega Ratio Rank: 30
RFM Calmar Ratio Rank: 41
RFM Martin Ratio Rank: 35

RFMZ

RFMZ Risk / Return Rank: 49
RFMZ Sharpe Ratio Rank: 45
RFMZ Sortino Ratio Rank: 53
RFMZ Omega Ratio Rank: 46
RFMZ Calmar Ratio Rank: 51
RFMZ Martin Ratio Rank: 49

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.

RFM vs. RFMZ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for RiverNorth Flexible Municipal Income Fund (RFM) and RiverNorth Flexible Municipal Income Fund II Inc. (RFMZ). 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.

	RFM	RFMZ	Difference
Sharpe ratio: Return per unit of total volatility	1.43	1.83	-0.40
Sortino ratio: Return per unit of downside risk	2.08	2.80	-0.72
Omega ratio: Gain probability vs. loss probability	1.27	1.34	-0.08
Calmar ratio: Return relative to maximum drawdown	2.32	2.62	-0.30
Martin ratio: Return relative to average drawdown	7.27	9.65	-2.38

RFM vs. RFMZ - Sharpe Ratio Comparison

The current RFM Sharpe Ratio is 1.43, which is comparable to the RFMZ Sharpe Ratio of 1.83. The chart below compares the historical Sharpe Ratios of RFM and RFMZ, 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

RFM vs. RFMZ - Drawdown Comparison

The maximum RFM drawdown since its inception was -35.49%, smaller than the maximum RFMZ drawdown of -39.28%. Use the drawdown chart below to compare losses from any high point for RFM and RFMZ.

Drawdown Indicators

	RFM	RFMZ	Difference
Max Drawdown Largest peak-to-trough decline	-35.49%	-39.28%	+3.79%
Max Drawdown (1Y) Largest decline over 1 year	-5.83%	-6.02%	+0.19%
Max Drawdown (3Y) Largest decline over 3 years	-19.08%	-19.98%	+0.90%
Max Drawdown (5Y) Largest decline over 5 years	-35.49%	-39.28%	+3.79%
Current Drawdown Current decline from peak	-10.92%	-11.50%	+0.58%
Average Drawdown Average peak-to-trough decline	-14.69%	-20.17%	+5.48%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.86%	1.63%	+0.23%

Volatility

RFM vs. RFMZ - Volatility Comparison

The current volatility for RiverNorth Flexible Municipal Income Fund (RFM) is 2.03%, while RiverNorth Flexible Municipal Income Fund II Inc. (RFMZ) has a volatility of 2.35%. This indicates that RFM experiences smaller price fluctuations and is considered to be less risky than RFMZ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	RFM	RFMZ	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.03%	2.35%	-0.32%
Volatility (6M) Calculated over the trailing 6-month period	7.49%	6.31%	+1.18%
Volatility (1Y) Calculated over the trailing 1-year period	9.44%	8.61%	+0.83%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	12.86%	13.68%	-0.82%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	12.67%	13.37%	-0.70%

RFM vs. RFMZ - Expense Ratio Comparison

RFM has a 5.15% expense ratio, which is higher than RFMZ's 3.27% expense ratio.

Dividends

RFM vs. RFMZ - Dividend Comparison

RFM's dividend yield for the trailing twelve months is around 7.48%, which matches RFMZ's 7.41% yield.

Position	TTM	2025	2024	2023	2022	2021	2020
RFM RiverNorth Flexible Municipal Income Fund	7.48%	8.07%	7.70%	7.64%	8.38%	10.49%	5.07%
RFMZ RiverNorth Flexible Municipal Income Fund II Inc.	7.41%	8.13%	7.76%	7.92%	8.53%	4.53%	0.00%

Frequently Asked Questions

Can I hold both RFM and RFMZ in my portfolio?

RFM and RFMZ have a correlation of 0.61, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, RFM or RFMZ?

RFMZ has higher volatility (2.35%) compared to RFM (2.03%). In terms of maximum drawdown, RFM dropped -35.49% vs RFMZ's -39.28%.

Which has better risk-adjusted returns?

RFMZ currently has the higher Sharpe Ratio (1.83 vs 1.43), 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.