BAB vs. XLG
BAB (Invesco Taxable Municipal Bond ETF) and XLG (Invesco S&P 500 Top 50 ETF) are both exchange-traded funds - BAB is a Municipal Bonds fund tracking the BofA Merrill Lynch Build America Bond Index, while XLG is a S&P 500 fund tracking the S&P 500 Top 50 Index. Both are passively managed. Over the past 10 years, BAB returned 2.24%/yr vs 17.27%/yr for XLG. At a correlation of -0.16, they often move in opposite directions. BAB charges 0.28%/yr vs 0.20%/yr for XLG.
Performance
BAB vs. XLG - 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 XLG's 7.57% return. Over the past 10 years, BAB has underperformed XLG with an annualized return of 2.24%, while XLG has yielded a comparatively higher 17.27% annualized 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%
XLG
- 1D
- -1.15%
- 1M
- 4.22%
- YTD
- 7.57%
- 6M
- 7.32%
- 1Y
- 28.54%
- 3Y*
- 24.46%
- 5Y*
- 16.24%
- 10Y*
- 17.27%
BAB vs. XLG - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
BAB Invesco Taxable Municipal Bond ETF | 0.12% | 8.30% | 1.03% | 8.67% | -19.50% | 1.00% | 9.11% | 10.85% | 0.93% | 9.87% |
XLG Invesco S&P 500 Top 50 ETF | 7.57% | 19.51% | 33.49% | 38.16% | -24.29% | 30.77% | 24.15% | 32.04% | -3.59% | 23.04% |
Correlation
The correlation between BAB and XLG is 0.15, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.15 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.14 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.11 |
Correlation (10Y) Calculated over the trailing 10-year period | -0.02 |
Correlation (All Time) Calculated using the full available price history since Nov 18, 2009 | -0.16 |
The correlation between BAB and XLG shifts across timeframes, from -0.16 (all time) to 0.15 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
BAB vs. XLG — Risk / Return Rank
BAB
XLG
BAB vs. XLG - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Invesco Taxable Municipal Bond ETF (BAB) and Invesco S&P 500 Top 50 ETF (XLG). 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 | XLG | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.91 | ||
| Sortino ratioReturn per unit of downside risk | -1.01 | ||
| Omega ratioGain probability vs. loss probability | 1.22 | 1.38 | -0.16 |
| Calmar ratioReturn relative to maximum drawdown | 1.73 | 2.31 | -0.58 |
| Martin ratioReturn relative to average drawdown | 4.93 | 8.66 | -3.73 |
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 | XLG | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.24 | 2.15 | -0.91 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.05 | 0.87 | -0.92 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.23 | 0.92 | -0.69 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.52 | 0.62 | -0.11 |
Drawdowns
BAB vs. XLG - Drawdown Comparison
The maximum BAB drawdown since its inception was -27.80%, smaller than the maximum XLG drawdown of -52.39%. Use the drawdown chart below to compare losses from any high point for BAB and XLG.
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Drawdown Indicators
| BAB | XLG | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -27.80% | -52.39% | +24.59% |
Max Drawdown (1Y)Largest decline over 1 year | -4.15% | -12.41% | +8.26% |
Max Drawdown (3Y)Largest decline over 3 years | -7.57% | -20.70% | +13.13% |
Max Drawdown (5Y)Largest decline over 5 years | -24.95% | -28.02% | +3.07% |
Max Drawdown (10Y)Largest decline over 10 years | -27.80% | -30.46% | +2.66% |
Current DrawdownCurrent decline from peak | -5.64% | -1.44% | -4.20% |
Average DrawdownAverage peak-to-trough decline | -5.31% | -7.64% | +2.33% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.46% | 3.30% | -1.84% |
Volatility
BAB vs. XLG - Volatility Comparison
The current volatility for Invesco Taxable Municipal Bond ETF (BAB) is 1.72%, while Invesco S&P 500 Top 50 ETF (XLG) has a volatility of 3.19%. This indicates that BAB experiences smaller price fluctuations and is considered to be less risky than XLG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| BAB | XLG | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.72% | 3.19% | -1.47% |
Volatility (6M)Calculated over the trailing 6-month period | 3.78% | 9.80% | -6.02% |
Volatility (1Y)Calculated over the trailing 1-year period | 5.80% | 13.33% | -7.53% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 8.33% | 18.68% | -10.35% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 9.69% | 18.84% | -9.15% |
BAB vs. XLG - Expense Ratio Comparison
BAB has a 0.28% expense ratio, which is higher than XLG's 0.20% expense ratio.
Dividends
BAB vs. XLG - Dividend Comparison
BAB's dividend yield for the trailing twelve months is around 4.10%, more than XLG's 0.60% 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% |
XLG Invesco S&P 500 Top 50 ETF | 0.60% | 0.64% | 0.72% | 0.97% | 1.34% | 0.94% | 1.25% | 1.58% | 2.00% | 1.85% | 2.00% | 2.09% |
Frequently Asked Questions
BAB and XLG have a correlation of 0.15, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
XLG has higher volatility (3.19%) compared to BAB (1.72%). In terms of maximum drawdown, BAB dropped -27.80% vs XLG's -52.39%.
On 10-year performance, XLG leads with 17.27% vs 2.24% for BAB. On fees, XLG is cheaper at 0.20% per year. On volatility, BAB has been the lower-risk option at 1.72%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, XLG has performed better with a 17.27% return vs 2.24%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
XLG is cheaper with a 0.20% expense ratio, compared with 0.28% for BAB.
BAB has the higher dividend yield at 4.10%, compared with 0.60% for XLG.
BAB is categorized as Municipal Bonds, while XLG is S&P 500. BAB tracks BofA Merrill Lynch Build America Bond Index, while XLG tracks S&P 500 Top 50 Index. Their fees differ too: 0.28% for BAB and 0.20% for XLG.
XLG currently has the higher Sharpe Ratio (2.15 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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