SQIFX vs. SMTFX

Last updated Jun 5, 2026

SQIFX (Sit Quality Income Fund) and SMTFX (SIT Minnesota Tax Free Income Fund) are both mutual funds - SQIFX is a Ultrashort Bond fund managed by Sit, while SMTFX is a Municipal Bonds fund managed by Sit. Over the past 10 years, SQIFX returned 2.08%/yr vs 1.95%/yr for SMTFX. At a 0.25 correlation, their price movements are largely independent. SQIFX charges 0.90%/yr vs 0.80%/yr for SMTFX.

Performance

SQIFX vs. SMTFX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Sit Quality Income Fund (SQIFX) and SIT Minnesota Tax Free Income Fund (SMTFX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SQIFX achieves a 0.43% return, which is significantly lower than SMTFX's 2.57% return. Over the past 10 years, SQIFX has outperformed SMTFX with an annualized return of 2.08%, while SMTFX has yielded a comparatively lower 1.95% annualized return.

SQIFX

• 1D: 0.00%
• 1M: 0.12%
• YTD: 0.43%
• 6M: 0.81%
• 1Y: 3.83%
• 3Y*: 4.35%
• 5Y*: 2.30%
• 10Y*: 2.08%

SMTFX

• 1D: -0.10%
• 1M: 0.95%
• YTD: 2.57%
• 6M: 3.31%
• 1Y: 10.45%
• 3Y*: 4.53%
• 5Y*: 0.80%
• 10Y*: 1.95%

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

SQIFX vs. SMTFX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SQIFX Sit Quality Income Fund	0.43%	6.32%	3.93%	3.39%	-2.68%	1.24%	2.89%	3.13%	0.90%	1.16%
SMTFX SIT Minnesota Tax Free Income Fund	2.57%	5.74%	4.05%	2.87%	-11.41%	2.43%	3.35%	6.95%	1.05%	5.84%

Correlation

The correlation between SQIFX and SMTFX is 0.54, 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	0.54
Correlation (3Y) Calculated over the trailing 3-year period	0.40
Correlation (5Y) Calculated over the trailing 5-year period	0.28
Correlation (10Y) Calculated over the trailing 10-year period	0.27
Correlation (All Time) Calculated using the full available price history since Jan 3, 2013	0.25

Over the past year, SQIFX and SMTFX have become more correlated (0.54) than their long-term average of 0.25, meaning their price movements have been converging.

Return for Risk

SQIFX vs. SMTFX — Risk / Return Rank

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

SQIFX

SQIFX Risk / Return Rank: 47
SQIFX Sharpe Ratio Rank: 39
SQIFX Sortino Ratio Rank: 54
SQIFX Omega Ratio Rank: 47
SQIFX Calmar Ratio Rank: 49
SQIFX Martin Ratio Rank: 48

SMTFX

SMTFX Risk / Return Rank: 82
SMTFX Sharpe Ratio Rank: 90
SMTFX Sortino Ratio Rank: 91
SMTFX Omega Ratio Rank: 94
SMTFX Calmar Ratio Rank: 70
SMTFX Martin Ratio Rank: 63

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.

SQIFX vs. SMTFX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Sit Quality Income Fund (SQIFX) and SIT Minnesota Tax Free Income Fund (SMTFX). 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.

	SQIFX	SMTFX	Difference
Sharpe ratio: Return per unit of total volatility	1.78	2.96	-1.18
Sortino ratio: Return per unit of downside risk	3.04	4.51	-1.47
Omega ratio: Gain probability vs. loss probability	1.36	1.73	-0.37
Calmar ratio: Return relative to maximum drawdown	2.63	3.14	-0.51
Martin ratio: Return relative to average drawdown	9.71	11.87	-2.16
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SQIFX vs. SMTFX - Sharpe Ratio Comparison

The current SQIFX Sharpe Ratio is 1.78, which is lower than the SMTFX Sharpe Ratio of 2.96. The chart below compares the historical Sharpe Ratios of SQIFX and SMTFX, 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

	SQIFX	SMTFX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.78	2.96	-1.18
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.99	0.18	+0.81
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	1.16	0.46	+0.70
Sharpe Ratio (All Time) Calculated using the full available price history	1.04	1.21	-0.17

Drawdowns

SQIFX vs. SMTFX - Drawdown Comparison

The maximum SQIFX drawdown since its inception was -4.22%, smaller than the maximum SMTFX drawdown of -16.34%. Use the drawdown chart below to compare losses from any high point for SQIFX and SMTFX.

Drawdown Indicators

	SQIFX	SMTFX	Difference
Max Drawdown Largest peak-to-trough decline	-4.22%	-16.34%	+12.12%
Max Drawdown (1Y) Largest decline over 1 year	-1.55%	-3.46%	+1.91%
Max Drawdown (3Y) Largest decline over 3 years	-1.55%	-6.73%	+5.18%
Max Drawdown (5Y) Largest decline over 5 years	-4.22%	-16.34%	+12.12%
Max Drawdown (10Y) Largest decline over 10 years	-4.22%	-16.34%	+12.12%
Current Drawdown Current decline from peak	-0.42%	-0.10%	-0.32%
Average Drawdown Average peak-to-trough decline	-0.45%	-1.83%	+1.38%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.42%	0.91%	-0.49%

Volatility

SQIFX vs. SMTFX - Volatility Comparison

The current volatility for Sit Quality Income Fund (SQIFX) is 0.79%, while SIT Minnesota Tax Free Income Fund (SMTFX) has a volatility of 1.51%. This indicates that SQIFX experiences smaller price fluctuations and is considered to be less risky than SMTFX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SQIFX	SMTFX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.79%	1.51%	-0.72%
Volatility (6M) Calculated over the trailing 6-month period	1.61%	2.81%	-1.20%
Volatility (1Y) Calculated over the trailing 1-year period	2.29%	3.67%	-1.38%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.33%	4.50%	-2.17%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.80%	4.26%	-2.46%

SQIFX vs. SMTFX - Expense Ratio Comparison

SQIFX has a 0.90% expense ratio, which is higher than SMTFX's 0.80% expense ratio.

Dividends

SQIFX vs. SMTFX - Dividend Comparison

SQIFX's dividend yield for the trailing twelve months is around 3.88%, more than SMTFX's 3.16% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SMTFX SIT Minnesota Tax Free Income Fund	3.16%	4.29%	3.23%	1.75%	2.18%	2.30%	2.59%	3.06%	3.17%	3.04%	3.13%	3.28%
SQIFX Sit Quality Income Fund	3.88%	4.21%	3.96%	2.78%	3.42%	1.23%	1.13%	1.95%	1.82%	1.16%	0.89%	0.95%

Frequently Asked Questions

Can I hold both SQIFX and SMTFX in my portfolio?

SQIFX and SMTFX have a correlation of 0.54, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SQIFX or SMTFX?

SMTFX has higher volatility (1.51%) compared to SQIFX (0.79%). In terms of maximum drawdown, SQIFX dropped -4.22% vs SMTFX's -16.34%.

Which has better risk-adjusted returns?

SMTFX currently has the higher Sharpe Ratio (2.96 vs 1.78), 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.