BAB vs. TAXI
BAB (Invesco Taxable Municipal Bond ETF) and TAXI (Northern Trust Intermediate Tax-Exempt Bond ETF) are both Municipal Bonds funds - BAB tracks the BofA Merrill Lynch Build America Bond Index while TAXI tracks the ICE Intermediate Term Focused Municipal Bond Index. Both are passively managed. A 0.56 correlation means they provide meaningful diversification when combined. BAB charges 0.28%/yr vs 0.05%/yr for TAXI.
Performance
BAB vs. TAXI - 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 TAXI's 0.97% return.
BAB
- 1D
- 0.19%
- 1M
- -0.24%
- 6M
- -0.63%
- YTD
- -0.12%
- 1Y
- 5.64%
- 3Y*
- 4.24%
- 5Y*
- -1.04%
- 10Y*
- 2.01%
TAXI
- 1D
- 0.03%
- 1M
- 0.19%
- 6M
- 0.48%
- YTD
- 0.97%
- 1Y
- —
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
BAB vs. TAXI - Yearly Performance Comparison
| 2026 (YTD) | 2025 | |
|---|---|---|
BAB Invesco Taxable Municipal Bond ETF | -0.12% | 4.10% |
TAXI Northern Trust Intermediate Tax-Exempt Bond ETF | 0.97% | 3.35% |
Correlation
The correlation between BAB and TAXI is 0.56, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (All Time) Calculated using the full available price history since Aug 19, 2025 | 0.56 |
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Return for Risk
BAB vs. TAXI — Risk / Return Rank
BAB
TAXI
Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.
BAB vs. TAXI - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Invesco Taxable Municipal Bond ETF (BAB) and Northern Trust Intermediate Tax-Exempt Bond ETF (TAXI). 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.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| BAB | TAXI | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | — | — | |
| Sortino ratioReturn per unit of downside risk | — | — | |
| Omega ratioGain probability vs. loss probability | 1.18 | — | — |
| Calmar ratioReturn relative to maximum drawdown | 1.37 | — | — |
| Martin ratioReturn relative to average drawdown | 3.52 | — | — |
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Drawdowns
BAB vs. TAXI - Drawdown Comparison
The maximum BAB drawdown since its inception was -27.80%, which is greater than TAXI's maximum drawdown of -2.23%. Use the drawdown chart below to compare losses from any high point for BAB and TAXI.
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Drawdown Indicators
| BAB | TAXI | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -27.80% | -2.23% | -25.57% |
Max Drawdown (1Y)Largest decline over 1 year | -4.15% | — | — |
Max Drawdown (3Y)Largest decline over 3 years | -7.57% | — | — |
Max Drawdown (5Y)Largest decline over 5 years | -24.95% | — | — |
Max Drawdown (10Y)Largest decline over 10 years | -27.80% | — | — |
Current DrawdownCurrent decline from peak | -5.87% | -0.77% | -5.10% |
Average DrawdownAverage peak-to-trough decline | -5.31% | -0.48% | -4.83% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.61% | — | — |
Volatility
BAB vs. TAXI - Volatility Comparison
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Volatility by Period
| BAB | TAXI | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.39% | — | — |
Volatility (6M)Calculated over the trailing 6-month period | 3.78% | — | — |
Volatility (1Y)Calculated over the trailing 1-year period | 5.66% | 1.86% | +3.80% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 8.30% | 1.86% | +6.44% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 9.68% | 1.86% | +7.82% |
BAB vs. TAXI - Expense Ratio Comparison
BAB has a 0.28% expense ratio, which is higher than TAXI's 0.05% expense ratio.
Dividends
BAB vs. TAXI - Dividend Comparison
BAB's dividend yield for the trailing twelve months is around 4.15%, more than TAXI's 2.23% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BAB Invesco Taxable Municipal Bond ETF | 4.15% | 3.96% | 3.97% | 3.65% | 3.40% | 2.63% | 2.96% | 3.77% | 4.20% | 3.96% | 4.26% | 4.71% |
TAXI Northern Trust Intermediate Tax-Exempt Bond ETF | 2.23% | 0.85% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
BAB and TAXI have a correlation of 0.56, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
On fees, TAXI is cheaper at 0.05% per year. The better choice depends on whether you care most about return, fees, risk, or income.
TAXI is cheaper with a 0.05% expense ratio, compared with 0.28% for BAB.
BAB has the higher dividend yield at 4.15%, compared with 2.23% for TAXI.
BAB tracks BofA Merrill Lynch Build America Bond Index, while TAXI tracks ICE Intermediate Term Focused Municipal Bond Index. They also come from different issuers: Invesco and Northern Trust. Their fees differ too: 0.28% for BAB and 0.05% for TAXI.
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