BAB vs. BSMQ
BAB (Invesco Taxable Municipal Bond ETF) and BSMQ (Invesco BulletShares 2026 Municipal Bond ETF) are both Municipal Bonds funds from Invesco - BAB tracks the BofA Merrill Lynch Build America Bond Index while BSMQ tracks the Invesco BulletShares Municipal Bond 2026 Index. Both are passively managed. Over the past 5 years, BAB returned -0.38%/yr vs 0.29%/yr for BSMQ. At a 0.41 correlation, their price movements are largely independent. BAB charges 0.28%/yr vs 0.18%/yr for BSMQ.
Performance
BAB vs. BSMQ - Performance Comparison
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Returns By Period
In the year-to-date period, BAB achieves a 0.12% return, which is significantly lower than BSMQ's 0.73% return.
BAB
- 1D
- 0.00%
- 1M
- 0.33%
- YTD
- 0.12%
- 6M
- -0.01%
- 1Y
- 7.16%
- 3Y*
- 4.42%
- 5Y*
- -0.38%
- 10Y*
- 2.24%
BSMQ
- 1D
- -0.06%
- 1M
- 0.14%
- YTD
- 0.73%
- 6M
- 1.17%
- 1Y
- 3.08%
- 3Y*
- 2.92%
- 5Y*
- 0.29%
- 10Y*
- —
BAB vs. BSMQ - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |
|---|---|---|---|---|---|---|---|---|
BAB Invesco Taxable Municipal Bond ETF | 0.12% | 8.30% | 1.03% | 8.67% | -19.50% | 1.00% | 9.11% | -1.03% |
BSMQ Invesco BulletShares 2026 Municipal Bond ETF | 0.73% | 3.12% | 1.99% | 3.60% | -7.62% | 1.05% | 5.26% | 0.24% |
Correlation
The correlation between BAB and BSMQ is 0.16, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.16 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.37 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.47 |
Correlation (All Time) Calculated using the full available price history since Sep 27, 2019 | 0.41 |
Over the past year, the correlation between BAB and BSMQ has dropped to 0.16 - well below their long-term average of 0.41, suggesting their price drivers have been diverging.
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Return for Risk
BAB vs. BSMQ — Risk / Return Rank
BAB
BSMQ
BAB vs. BSMQ - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Invesco Taxable Municipal Bond ETF (BAB) and Invesco BulletShares 2026 Municipal Bond ETF (BSMQ). 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.
| BAB | BSMQ | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.08 | ||
| Sortino ratioReturn per unit of downside risk | -1.77 | ||
| Omega ratioGain probability vs. loss probability | 1.22 | 1.48 | -0.26 |
| Calmar ratioReturn relative to maximum drawdown | 1.73 | 9.43 | -7.69 |
| Martin ratioReturn relative to average drawdown | 4.93 | 24.69 | -19.76 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| BAB | BSMQ | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.24 | 2.32 | -1.08 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.05 | 0.11 | -0.16 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.23 | — | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.52 | 0.25 | +0.27 |
Drawdowns
BAB vs. BSMQ - Drawdown Comparison
The maximum BAB drawdown since its inception was -27.80%, which is greater than BSMQ's maximum drawdown of -13.18%. Use the drawdown chart below to compare losses from any high point for BAB and BSMQ.
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Drawdown Indicators
| BAB | BSMQ | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -27.80% | -13.18% | -14.62% |
Max Drawdown (1Y)Largest decline over 1 year | -4.15% | -0.33% | -3.82% |
Max Drawdown (3Y)Largest decline over 3 years | -7.57% | -2.53% | -5.04% |
Max Drawdown (5Y)Largest decline over 5 years | -24.95% | -11.50% | -13.45% |
Max Drawdown (10Y)Largest decline over 10 years | -27.80% | — | — |
Current DrawdownCurrent decline from peak | -5.64% | -0.12% | -5.52% |
Average DrawdownAverage peak-to-trough decline | -5.31% | -3.48% | -1.83% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.46% | 0.12% | +1.34% |
Volatility
BAB vs. BSMQ - Volatility Comparison
Invesco Taxable Municipal Bond ETF (BAB) has a higher volatility of 1.72% compared to Invesco BulletShares 2026 Municipal Bond ETF (BSMQ) at 0.39%. This indicates that BAB's price experiences larger fluctuations and is considered to be riskier than BSMQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| BAB | BSMQ | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.72% | 0.39% | +1.33% |
Volatility (6M)Calculated over the trailing 6-month period | 3.78% | 0.94% | +2.84% |
Volatility (1Y)Calculated over the trailing 1-year period | 5.80% | 1.33% | +4.47% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 8.33% | 2.68% | +5.65% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 9.69% | 4.79% | +4.90% |
BAB vs. BSMQ - Expense Ratio Comparison
BAB has a 0.28% expense ratio, which is higher than BSMQ's 0.18% expense ratio.
Dividends
BAB vs. BSMQ - Dividend Comparison
BAB's dividend yield for the trailing twelve months is around 4.10%, more than BSMQ's 2.76% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BAB Invesco Taxable Municipal Bond ETF | 4.10% | 3.96% | 3.97% | 3.65% | 3.40% | 2.63% | 2.96% | 3.77% | 4.20% | 3.96% | 4.26% | 4.71% |
BSMQ Invesco BulletShares 2026 Municipal Bond ETF | 2.76% | 2.74% | 2.75% | 2.47% | 1.60% | 1.14% | 1.57% | 0.44% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
BAB and BSMQ have a correlation of 0.16, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
BAB has higher volatility (1.72%) compared to BSMQ (0.39%). In terms of maximum drawdown, BAB dropped -27.80% vs BSMQ's -13.18%.
On 5-year performance, BSMQ leads with 0.29% vs -0.38% for BAB. On fees, BSMQ is cheaper at 0.18% per year. On volatility, BSMQ has been the lower-risk option at 0.39%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, BSMQ has performed better with a 0.29% return vs -0.38%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
BSMQ is cheaper with a 0.18% expense ratio, compared with 0.28% for BAB.
BAB has the higher dividend yield at 4.10%, compared with 2.76% for BSMQ.
BAB tracks BofA Merrill Lynch Build America Bond Index, while BSMQ tracks Invesco BulletShares Municipal Bond 2026 Index. Their fees differ too: 0.28% for BAB and 0.18% for BSMQ.
BSMQ currently has the higher Sharpe Ratio (2.32 vs 1.24), 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.
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