AVIG vs. TAXF

Last updated Jun 4, 2026

AVIG (Avantis Core Fixed Income ETF) and TAXF (American Century Diversified Municipal Bond ETF) are both exchange-traded funds - AVIG is a Corporate Bonds fund actively managed by American Century, while TAXF is a Municipal Bonds fund actively managed by American Century. Both are actively managed. Over the past 5 years, AVIG returned 0.13%/yr vs 1.07%/yr for TAXF. A 0.65 correlation means they provide meaningful diversification when combined. AVIG charges 0.15%/yr vs 0.29%/yr for TAXF.

Performance

AVIG vs. TAXF - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Avantis Core Fixed Income ETF (AVIG) and American Century Diversified Municipal Bond ETF (TAXF). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, AVIG achieves a 0.08% return, which is significantly lower than TAXF's 1.96% return.

AVIG

• 1D: -0.21%
• 1M: 0.11%
• YTD: 0.08%
• 6M: 0.01%
• 1Y: 5.39%
• 3Y*: 4.44%
• 5Y*: 0.13%
• 10Y*: —

TAXF

• 1D: -0.01%
• 1M: 0.82%
• YTD: 1.96%
• 6M: 2.23%
• 1Y: 8.33%
• 3Y*: 4.23%
• 5Y*: 1.07%
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

AVIG vs. TAXF - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
AVIG Avantis Core Fixed Income ETF	0.08%	7.98%	1.55%	6.41%	-13.94%	-2.15%	0.96%
TAXF American Century Diversified Municipal Bond ETF	1.96%	4.30%	1.74%	7.33%	-9.64%	2.72%	2.96%

Correlation

The correlation between AVIG and TAXF is 0.55, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.55
Correlation (3Y) Calculated over the trailing 3-year period	0.70
Correlation (5Y) Calculated over the trailing 5-year period	0.67
Correlation (All Time) Calculated using the full available price history since Oct 16, 2020	0.65

The correlation between AVIG and TAXF shifts across timeframes, from 0.55 (1 year) to 0.70 (3 years), reflecting how their relationship changes across market environments.

Return for Risk

AVIG vs. TAXF — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

AVIG

AVIG Risk / Return Rank: 38
AVIG Sharpe Ratio Rank: 39
AVIG Sortino Ratio Rank: 40
AVIG Omega Ratio Rank: 37
AVIG Calmar Ratio Rank: 39
AVIG Martin Ratio Rank: 37

TAXF

TAXF Risk / Return Rank: 76
TAXF Sharpe Ratio Rank: 83
TAXF Sortino Ratio Rank: 87
TAXF Omega Ratio Rank: 90
TAXF Calmar Ratio Rank: 58
TAXF Martin Ratio Rank: 59

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

AVIG vs. TAXF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Avantis Core Fixed Income ETF (AVIG) and American Century Diversified Municipal Bond ETF (TAXF). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	AVIG	TAXF	Difference
Sharpe ratio Return per unit of total volatility	1.40	2.74	-1.33
Sortino ratio Return per unit of downside risk	2.06	3.97	-1.91
Omega ratio Gain probability vs. loss probability	1.24	1.59	-0.35
Calmar ratio Return relative to maximum drawdown	1.92	2.86	-0.94
Martin ratio Return relative to average drawdown	5.85	10.30	-4.45
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

AVIG vs. TAXF - Sharpe Ratio Comparison

The current AVIG Sharpe Ratio is 1.40, which is lower than the TAXF Sharpe Ratio of 2.74. The chart below compares the historical Sharpe Ratios of AVIG and TAXF, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	AVIG	TAXF	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.40	2.74	-1.33
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.02	0.26	-0.24
Sharpe Ratio (All Time) Calculated using the full available price history	-0.02	0.62	-0.64

Drawdowns

AVIG vs. TAXF - Drawdown Comparison

The maximum AVIG drawdown since its inception was -19.64%, which is greater than TAXF's maximum drawdown of -13.93%. Use the drawdown chart below to compare losses from any high point for AVIG and TAXF.

Drawdown Indicators

	AVIG	TAXF	Difference
Max Drawdown Largest peak-to-trough decline	-19.64%	-13.93%	-5.71%
Max Drawdown (1Y) Largest decline over 1 year	-2.82%	-2.93%	+0.11%
Max Drawdown (3Y) Largest decline over 3 years	-6.03%	-5.53%	-0.50%
Max Drawdown (5Y) Largest decline over 5 years	-19.47%	-13.93%	-5.54%
Current Drawdown Current decline from peak	-1.66%	-0.48%	-1.18%
Average Drawdown Average peak-to-trough decline	-7.75%	-3.14%	-4.61%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.92%	0.81%	+0.11%

Volatility

AVIG vs. TAXF - Volatility Comparison

Avantis Core Fixed Income ETF (AVIG) has a higher volatility of 1.32% compared to American Century Diversified Municipal Bond ETF (TAXF) at 0.99%. This indicates that AVIG's price experiences larger fluctuations and is considered to be riskier than TAXF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AVIG	TAXF	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.32%	0.99%	+0.33%
Volatility (6M) Calculated over the trailing 6-month period	2.85%	2.24%	+0.61%
Volatility (1Y) Calculated over the trailing 1-year period	3.85%	3.05%	+0.80%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.23%	4.20%	+2.03%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	6.01%	4.65%	+1.36%

AVIG vs. TAXF - Expense Ratio Comparison

AVIG has a 0.15% expense ratio, which is lower than TAXF's 0.29% expense ratio.

Dividends

AVIG vs. TAXF - Dividend Comparison

AVIG's dividend yield for the trailing twelve months is around 4.04%, more than TAXF's 3.47% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018
AVIG Avantis Core Fixed Income ETF	4.04%	4.36%	4.66%	4.06%	2.53%	1.12%	0.22%	0.00%	0.00%
TAXF American Century Diversified Municipal Bond ETF	3.47%	3.68%	3.38%	2.93%	2.05%	1.58%	2.13%	2.64%	0.69%

Frequently Asked Questions

Can I hold both AVIG and TAXF in my portfolio?

AVIG and TAXF have a correlation of 0.55, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, AVIG or TAXF?

AVIG has higher volatility (1.32%) compared to TAXF (0.99%). In terms of maximum drawdown, AVIG dropped -19.64% vs TAXF's -13.93%.

Which ETF is better, AVIG or TAXF?

On 5-year performance, TAXF leads with 1.07% vs 0.13% for AVIG. On fees, AVIG is cheaper at 0.15% per year. On volatility, TAXF has been the lower-risk option at 0.99%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, AVIG or TAXF?

Over the 5-year period, TAXF has performed better with a 1.07% return vs 0.13%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, AVIG or TAXF?

AVIG is cheaper with a 0.15% expense ratio, compared with 0.29% for TAXF.

Which ETF pays a higher dividend yield, AVIG or TAXF?

AVIG has the higher dividend yield at 4.04%, compared with 3.47% for TAXF.

What is the main difference between AVIG and TAXF?

AVIG is categorized as Corporate Bonds, while TAXF is Municipal Bonds. Their fees differ too: 0.15% for AVIG and 0.29% for TAXF.

Which has better risk-adjusted returns?

TAXF currently has the higher Sharpe Ratio (2.74 vs 1.40), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.