What this ETF is trying to do

The Federated Hermes Premier Municipal Income Fund (FMN) is an ETF that focuses on providing income to investors. It generally aims to pay out regular cash distributions.

What the numbers show

As of October 9, 2026, the share price is $10.02. To understand how the price has changed, we can look at the price return and the total return.

• Price Return: This measures only the change in the share price. The one-year price return is -8.49%, and the year-to-date (YTD) price return is -9.81%. Over three years, the price return is 4.38%.

• Total Return: This is a different measure that includes both the share-price movement and the distributions paid to investors. The one-year total return is -3.91%, and the YTD total return is -6.44%. Over three years, the total return is 19.27%.

For a simple example, if you had invested $10,000 based on the estimated price from roughly one year ago ($10.95), the price-only decline of -8.49% would mean the value of those shares alone would be approximately $9,151.

Income and distribution explanation

This ETF usually pays distributions monthly. Over the last 12 months, it has made 12 payouts. The distribution yield is approximately 5.39%.

It is important for beginners to know that a high distribution yield alone can be misleading. A fund can pay out a high percentage of cash while the share price is still falling.

NAV erosion explanation

"NAV erosion" happens when the net asset value (the actual value of the fund's holdings) declines over time. While a falling share price is not the same thing as NAV erosion, we use an erosion-risk score to monitor this.

FMN has an erosion score of 75, which is labeled as "Mild price erosion." The severe erosion-risk flag is false, meaning it did not trigger the highest warning level.

Pros

• Regular Income: The fund provides frequent payouts, usually on a monthly basis.

• Long-term Total Return: The three-year total return is positive at 19.27%.

Cons

• Recent Price Decline: Both the YTD and one-year price returns are negative.

• Mild Erosion Risk: The fund has a "mild" erosion-risk label.

Beginner takeaway

FMN provides regular monthly income, but the share price has declined recently. When looking at this ETF, it is important to distinguish between the price return (the share price change) and the total return (which includes the cash paid out). Income investors generally care about principal stability to ensure their original investment doesn't shrink too much while they collect payouts.