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. Their 0.56 correlation means they have sometimes moved together and sometimes differently. 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 -0.69% return, which is significantly lower than TAXI's -0.04% return.
BAB
- 1D
- 0.30%
- 1M
- -1.24%
- 6M
- -0.25%
- YTD
- -0.69%
- 1Y
- 2.76%
- 3Y*
- 4.48%
- 5Y*
- -1.31%
- 10Y*
- 1.92%
- ALL TIME*
- 4.63%
TAXI
- 1D
- 0.02%
- 1M
- -1.27%
- 6M
- -0.92%
- YTD
- -0.04%
- 1Y
- —
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
- ALL TIME*
- —
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $6.38M | $6.97M | $5.75M | |
| $829.70K | $728.87K | $911.81K |
BAB vs. TAXI - Yearly Performance Comparison
| 2026 (YTD) | 2025 | |
|---|---|---|
BAB Invesco Taxable Municipal Bond ETF | -0.69% | 4.10% |
TAXI Northern Trust Intermediate Tax-Exempt Bond ETF | -0.04% | 3.35% |
Correlation
The correlation between BAB and TAXI is 0.56, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.
| 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 | 1.09 | — | — |
| Calmar ratioReturn relative to maximum drawdown | 0.67 | — | — |
| Martin ratioReturn relative to average drawdown | 1.58 | — | — |
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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 | -6.43% | — | — |
Max Drawdown (5Y)Largest decline over 5 years | -24.77% | — | — |
Max Drawdown (10Y)Largest decline over 10 years | -27.80% | — | — |
Current DrawdownCurrent decline from peak | -6.40% | -1.75% | -4.65% |
Average DrawdownAverage peak-to-trough decline | -5.31% | -0.54% | -4.77% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.75% | — | — |
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 | 1.38% | — | — |
Volatility (6M)Calculated over the trailing 6-month period | 3.84% | — | — |
Volatility (1Y)Calculated over the trailing 1-year period | 5.55% | 1.95% | +3.60% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 8.29% | 1.95% | +6.34% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 9.68% | 1.95% | +7.73% |
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 4.22%, more than TAXI's 2.51% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BAB Invesco Taxable Municipal Bond ETF | 4.22% | 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 | 2.51% | 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 4.22%, compared with 2.51% 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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