FMN vs SPY: Correlation
Federated Hermes Premier Municipal Income Fund (FMN) and SPDR S&P 500 ETF Trust (SPY) show a moderate relationship: their 3-year correlation of weekly returns is 0.32.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are FMN and SPY?
On 3 years of weekly data the FMN/SPY correlation comes out at 0.32, moderate. The past 12 months show a tighter link (0.58) than the 3-year average (0.32). The 5-year figure is 0.37, and annualized covariance runs at 50.9 %².
SPY is close to the least connected end of FMN's tracked universe, ranking #9 of 13. On 12-month performance SPY holds a 11.1-point edge, +9.5% against +20.6%.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
FMN vs SPY: side by side
| FMN (Federated Hermes Premier Municipal Income Fund) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +9.5% | +20.6% |
| 5-year return | -12.8% | +82.4% |
| Volatility (ann.) | 11.1% | 14.5% |
| Beta vs S&P 500 | 0.24 | 1.00 |
| Max drawdown (3Y) | -16.3% | -18.8% |
| Market cap | $0.1B | – |
| P/E (trailing) | 9.7 | – |
| Dividend yield | 4.57% | 1.01% |
| Expense ratio | – | 0.09% |
| Assets under management | – | $795.3B |
| Sector / category | US Listed | ETF · US Large Cap |
SPY is a Large Blend fund from State Street Investment Management: $795.3B under management, 504 holdings, a 0.09% expense ratio, a 1.01% trailing dividend yield.
Year-by-year returns
| Year | FMN | SPY |
|---|---|---|
| 2022 | -26.7% | -18.2% |
| 2023 | +9.2% | +26.2% |
| 2024 | +3.2% | +24.9% |
| 2025 | +6.8% | +17.7% |
| 2026 | +2.9% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are FMN and SPY good diversifiers for each other?
A fair diversifier. At 0.32, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between FMN and SPY?
As of 2026-08-27, the correlation of weekly returns between FMN and SPY is 0.32 over 3 years, 0.58 over 1 year and 0.37 over 5 years.
Is SPY a good diversifier for FMN?
A fair diversifier. At 0.32, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.32 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
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Related comparisons
Hubs: FMN correlations · SPY correlations
