CGHM vs FMNY

CGHMACapital Group Municipal High-Income ETF

FMNYDFirst Trust New York Municipal High Income ETF

In short

CGHM Index high-yield muni funds stop where the ratings stop. CGHM is Capital Group's active version: built to lean into lower-rated and unrated tax-exempt bonds, with the income paid out monthly.

FMNY Most high-yield muni ETFs buy the whole country. FMNY buys New York, actively, hunting income exempt from regular federal, New York State and New York City income taxes across a concentrated book of roughly 80 bonds.

Stated mandate

CGHM The fund seeks a high level of current income that is exempt from regular federal income tax.

FMNY The Fund seeks current income exempt from regular federal and New York income taxes, with long-term capital appreciation as a secondary objective.

Why people hold it

• CGHM The mandate is the whole point: at least 60% in bonds rated BBB+/Baa1 or below, or unrated, the corner of the muni market index funds cap or skip.yahoo.comcapitalgroup.com
• Income lands monthly and is exempt from regular federal income tax, spread across roughly 600 bond positions rather than a few big credits.
• A young fund that is already a multi-billion-dollar one, and what it holds lines up closely with the mandate it advertises.
• Sits in the upper half of the muni ETF field we grade, a solid showing for an active fund fishing in the market's messier waters.

• FMNY At least 80% of net assets goes into bonds paying interest exempt from regular federal, New York State and New York City income taxes. Few ETFs aim at all three.ftportfolios.com
• Actively managed with no index to hug: the team ranges across general obligation bonds, revenue bonds, municipal leases and private activity paper, and can shift on credit.businesswire.comftportfolios.com
• Income arrives monthly, and the fund has been running since 2021, so there is a real live record behind the strategy rather than a backtest.

Worth knowing

• CGHM At 0.34% it runs above the 0.30% muni cohort median, and well above plain index core muni funds like VTEB (0.03%) and MUB (0.05%).
• Lower-rated and unrated munis carry more credit and liquidity risk than investment-grade muni funds, so swings can be sharper when credit gets stressed.yahoo.com
• Launched in 2024, so the history here is short and has not yet run through a full credit cycle.

• FMNY One state, roughly 80 bonds, and a reach for yield means lower-rated issuers: New York credit stress lands here without national diversification to soften it.ftportfolios.com
• Costs more than national high-yield muni ETFs such as HYD (0.32%) and HYMB (0.35%), and sits above the median fee in its category.
• Small and thinly traded next to the national muni names, so bid-ask spreads can be wider and large orders move the price more.

Full CGHM profile⁠

Full FMNY profile⁠