X-Square Municipal Income Tax Free ETF (ZTAX) Sharpe Ratio: 0.28

ZTAX's Sharpe Ratio of 0.28 indicates that for each unit of volatility, it generates 0.28 units of excess return above the risk-free rate. The ratio is calculated using historical daily returns over the past 12 months (as of Jun 23, 2026).

Sharpe uses total volatility (standard deviation) which includes both upside and downside price movements, making it useful for comparing risk-adjusted returns across different assets. For how to read this number and when it can mislead, see Sharpe Ratio Explained.

ZTAX Sharpe Ratio Rank

Concerning

ZTAX ranks above 12.1% of all investments in our database based on Sharpe Ratio over the past 12 months, indicating weak returns relative to total risk taken. Securities are ranked from 0 (worst) to 100 (best).

What moves the rank

Strong returns with low total volatility → Higher rank
High volatility (both upside and downside) → Lower rank
Consistent returns → Higher rank than volatile returns of same magnitude
Sharp drawdowns increase volatility → Lower rank

What you can do with this information

Weak risk-adjusted returns relative to category peers
Evaluate whether this holding aligns with your risk-return objectives
Consider reducing exposure or re-evaluating position size
Review higher-ranked alternatives in the same category

ZTAX Sharpe Ratio Market Positioning

The chart shows ZTAX's Sharpe Ratio relative to all ETFs on our platform, with color zones indicating percentile rankings. Higher ratios indicate better risk-adjusted returns.

Red zone (bottom 25%): 0.86 or lower
Yellow zone (middle 50%): 0.86 to 2.31
Green zone (top 25%): 2.31 or higher
Top 1%: 7.28+
Median: 1.68 — half of all investments score higher

How it compares to other similar ETFs

The table compares X-Square Municipal Income Tax Free ETF's Sharpe Ratio with other ETFs in the Municipal Bonds category across multiple time periods, showing how ZTAX's risk-adjusted performance compares to similar funds.

Data shows 1-, 5-, and 10-year periods, plus each fund's all-time average, as of Jun 23, 2026.

Symbol	Name	1Y Sharpe Ratio
MYMG	State Street My2027 Municipal Bond ETF	4.67
MYMF	State Street My2026 Municipal Bond ETF	3.85
CALI	iShares Short-Term California Muni Active ETF	3.83
MEAR	iShares Short Maturity Municipal Bond ETF	3.71
STAX	Macquarie Tax-Free USA Short Term ETF	3.62
FUMB	First Trust Ultra Short Duration Municipal ETF	3.58
SMMU	PIMCO Short Term Municipal Bond Active ETF	3.58
VSDM	Vanguard Short Duration Tax-Exempt Bond ETF	3.41
TAXE	T. Rowe Price Intermediate Municipal Income ETF	3.23
CGSM	Capital Group Short Duration Municipal Income ETF	3.19
ZTAX	X-Square Municipal Income Tax Free ETF	0.28

Benchmark Against

Benchmark

S&P 500 Index

Lookback Period

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Historical Sharpe Ratio

The chart shows ZTAX's rolling Sharpe ratio over time compared to your chosen benchmark. Rising trends indicate improving returns relative to total volatility, while declining trends may signal deteriorating risk-adjusted performance or increased volatility. Use multiple timeframes to distinguish short-term fluctuations from long-term patterns.

Identify market cycles by observing when ZTAX consistently outperforms (line above benchmark), underperforms (below benchmark), or aligns with the benchmark.

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Sharpe Ratio Calculator

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