FMUN vs TAFM

FMUN vs TAFM

Which is better, FMUN or TAFM?

Nearly the same fund. FMUN costs less.

FMUN has a lower expense ratio. TAFM led over 1Y and the full window. The two have moved almost in lockstep, correlation 0.97.

Lower Fees: FMUNHigher Returns: TAFM

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricFMUNTAFM
Expense Ratio0.05%Best0.28%
AUM$170M$1.0B
Dividend Yield3.83%3.85%
Holdings1,1051,404
YTD Return-3.63%-3.22%Best
1Y Return-2.57%-2.29%Best
Volatility (annualized)5.5%5.2%Best
Max Drawdown-7.3%-6.6%Best
$10,000 over 1.5 years$10,102$10,156Best
Fund FamilyFidelity Investments (US)AllianceBernstein L.P.
CategoryTax PreferredTax Preferred
StyleMunicipal BondMunicipal Bond
InceptionApr 7, 2025Dec 13, 2023

Not shown on this pair: 3Y Return (annualized), 5Y Return (annualized), Top 10 Weight.

Volatility and max drawdown, and the $10,000 over 1.5 years row, are measured over the window both funds cover: Apr 7, 2025 to Oct 14, 2026 (1.5 years).

FMUN vs TAFM growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 1.5 years both funds cover.

Compare FMUN against instead:FMUN vs SPYFMUN vs QQQFMUN vs VOOFMUN vs VTITAFM against:TAFM vs VXUS

FMUN vs TAFM Performance

Fidelity Systematic Municipal Bond Index ETF (FMUN) is an ETF from Fidelity Investments (US) and AB Tax-Aware Intermediate Municipal ETF (TAFM) is an ETF from AllianceBernstein L.P.. Over the past year FMUN returned -2.57% while TAFM returned -2.29%. Year to date, FMUN is down 3.63% versus a loss of 3.22% for TAFM.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

FMUN has been the more volatile fund, with annualized monthly volatility of 5.5% compared with 5.2% for TAFM. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.

The deepest peak-to-trough decline in our data was -7.3% for FMUN and -6.6% for TAFM. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.97. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

FMUN charges 0.05% per year while TAFM charges 0.28%. On a $10,000 position that is $5 vs $28 annually, a gap of $23 per year that compounds over a long holding period. On income, FMUN currently yields 3.83% against 3.85% for TAFM.

Holdings Overlap

We hold position weights for 781 holdings in FMUN and 234 in TAFM, totalling 57.8% and 28.8% of the two funds. Neither is a share of a fund we can divide by, so no overlap percentage is shown here. Within what we can see, 64 positions appear in both.

64 positions in common, counted across the 781 positions we hold weights for in FMUN and 234 in TAFM, against full books of 1,105 and 1,404.

Top Shared Holdings

StockWeight in FMUNWeight in TAFMDifference
KY KYSPWR 06/01/2055Kentucky Inc Ky Pub Energy Aut 5.25% Dec 01, 20290.93%0.13%0.80%
IL CHITRN 5 12/01/20Chicago Transit Authority Sales Tax Receipts Fund 0.05 12/01/20490.17%0.41%0.24%
WI PUBTRN 5.75 12/31Pub Fin A 5.75% 12/31/650.32%0.23%0.09%
NY NYSGEN 5 03/15/20New York St Dorm Auth St Pers 5% Mar 15, 20550.33%0.16%0.17%
AL BBEUTL 10/01/2055Black Belt Energy Gas District 5 10/01/20550.14%0.34%0.20%
OH BUCGEN 5 06/01/20Buckeye Tobacco Settlement Financing Auth Oh Ref-Senior-Class 2-Ser B-2 5.000 Jun 01 550.19%0.26%0.07%
IL ILSTRN 5 01/01/20Illinois State Toll Highway Authority 5 01/01/20420.01%0.36%0.35%
NY NYC 5 09/01/2048New York City, New York, General Obligation Bonds, Fiscal 2025 Series C-10.25%0.12%0.13%
AL BBEUTL 03/01/2055Black Belt Energy Gas Dist Ala 5% Nov 01, 20340.09%0.28%0.19%
AZ SLTPWR 5 12/01/20Salt Verde Az Financial Corp Senior Gas Revenue 5% 12/01/20370.03%0.31%0.28%

You are not choosing between two funds in isolation.

Whichever of FMUN and TAFM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

FMUNTAFM

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Frequently Asked Questions

Which is cheaper, FMUN or TAFM?

FMUN has an expense ratio of 0.05% while TAFM charges 0.28%. FMUN is the cheaper option, by $23 a year on a $10,000 investment.

Which performed better, FMUN or TAFM?

Over the past year FMUN returned -2.57% vs -2.29% for TAFM, so TAFM leads on 1-year performance. Over the longest common window we track (2 years), FMUN annualized +0.68% vs +1.04% for TAFM. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, FMUN or TAFM?

FMUN has been the more volatile fund at 5.5% annualized versus 5.2% for TAFM. Worst drawdown: FMUN -7.3% vs TAFM -6.6%.

Should I hold both FMUN and TAFM?

FMUN and TAFM have a monthly-return correlation of 0.97, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.

Which pays a higher dividend, FMUN or TAFM?

FMUN yields 3.83% while TAFM yields 3.85%, so TAFM currently pays the higher dividend yield.

Is TAFM better than FMUN?

FMUN has a lower expense ratio. TAFM led over 1Y and the full window. The two have moved almost in lockstep, correlation 0.97. Which one suits a particular account depends on what it is for. This is information, not a recommendation.