BAGSX vs. BTMSX

Last updated Jun 4, 2026

BAGSX (Baird Aggregate Bond Fund) and BTMSX (Baird Short-Term Municipal Bond Fund) are both mutual funds - BAGSX is a Intermediate Core Bond fund managed by Baird, while BTMSX is a Municipal Bonds fund managed by Baird. Over the past 10 years, BAGSX returned 1.74%/yr vs 1.83%/yr for BTMSX. At a 0.40 correlation, their price movements are largely independent. Both charge a 0.55% expense ratio.

Performance

BAGSX vs. BTMSX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Baird Aggregate Bond Fund (BAGSX) and Baird Short-Term Municipal Bond Fund (BTMSX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, BAGSX achieves a 0.30% return, which is significantly lower than BTMSX's 0.97% return. Over the past 10 years, BAGSX has underperformed BTMSX with an annualized return of 1.74%, while BTMSX has yielded a comparatively higher 1.83% annualized return.

BAGSX

• 1D: 0.10%
• 1M: 0.52%
• YTD: 0.30%
• 6M: 0.33%
• 1Y: 5.28%
• 3Y*: 4.25%
• 5Y*: 0.19%
• 10Y*: 1.74%

BTMSX

• 1D: 0.00%
• 1M: 0.27%
• YTD: 0.97%
• 6M: 1.25%
• 1Y: 4.04%
• 3Y*: 3.82%
• 5Y*: 1.63%
• 10Y*: 1.83%

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

BAGSX vs. BTMSX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
BAGSX Baird Aggregate Bond Fund	0.30%	7.11%	1.63%	6.12%	-13.52%	-1.74%	8.42%	9.17%	-0.55%	3.90%
BTMSX Baird Short-Term Municipal Bond Fund	0.97%	4.46%	2.98%	3.90%	-4.01%	0.59%	2.90%	3.81%	1.34%	2.45%

Correlation

The correlation between BAGSX and BTMSX is 0.41, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.41
Correlation (3Y) Calculated over the trailing 3-year period	0.50
Correlation (5Y) Calculated over the trailing 5-year period	0.46
Correlation (10Y) Calculated over the trailing 10-year period	0.41
Correlation (All Time) Calculated using the full available price history since Jan 5, 2016	0.40

The correlation between BAGSX and BTMSX has been stable across timeframes, ranging from 0.40 to 0.50 - a consistent structural relationship.

Return for Risk

BAGSX vs. BTMSX — Risk / Return Rank

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

BAGSX

BAGSX Risk / Return Rank: 24
BAGSX Sharpe Ratio Rank: 24
BAGSX Sortino Ratio Rank: 25
BAGSX Omega Ratio Rank: 25
BAGSX Calmar Ratio Rank: 25
BAGSX Martin Ratio Rank: 21

BTMSX

BTMSX Risk / Return Rank: 87
BTMSX Sharpe Ratio Rank: 97
BTMSX Sortino Ratio Rank: 97
BTMSX Omega Ratio Rank: 98
BTMSX Calmar Ratio Rank: 81
BTMSX Martin Ratio Rank: 63

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.

BAGSX vs. BTMSX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Baird Aggregate Bond Fund (BAGSX) and Baird Short-Term Municipal Bond Fund (BTMSX). 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.

	BAGSX	BTMSX	Difference
Sharpe ratio: Return per unit of total volatility	1.41	3.69	-2.29
Sortino ratio: Return per unit of downside risk	2.09	6.00	-3.91
Omega ratio: Gain probability vs. loss probability	1.26	2.26	-1.01
Calmar ratio: Return relative to maximum drawdown	1.87	3.68	-1.82
Martin ratio: Return relative to average drawdown	5.53	12.35	-6.81
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

BAGSX vs. BTMSX - Sharpe Ratio Comparison

The current BAGSX Sharpe Ratio is 1.41, which is lower than the BTMSX Sharpe Ratio of 3.69. The chart below compares the historical Sharpe Ratios of BAGSX and BTMSX, 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

	BAGSX	BTMSX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.41	3.69	-2.29
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.03	0.95	-0.92
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.36	1.00	-0.64
Sharpe Ratio (All Time) Calculated using the full available price history	0.92	1.03	-0.11

Drawdowns

BAGSX vs. BTMSX - Drawdown Comparison

The maximum BAGSX drawdown since its inception was -18.97%, which is greater than BTMSX's maximum drawdown of -6.51%. Use the drawdown chart below to compare losses from any high point for BAGSX and BTMSX.

Drawdown Indicators

	BAGSX	BTMSX	Difference
Max Drawdown Largest peak-to-trough decline	-18.97%	-6.51%	-12.46%
Max Drawdown (1Y) Largest decline over 1 year	-2.84%	-1.10%	-1.74%
Max Drawdown (3Y) Largest decline over 3 years	-6.17%	-1.89%	-4.28%
Max Drawdown (5Y) Largest decline over 5 years	-18.84%	-6.51%	-12.33%
Max Drawdown (10Y) Largest decline over 10 years	-18.97%	-6.51%	-12.46%
Current Drawdown Current decline from peak	-1.54%	-0.30%	-1.24%
Average Drawdown Average peak-to-trough decline	-2.52%	-0.94%	-1.58%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.96%	0.33%	+0.63%

Volatility

BAGSX vs. BTMSX - Volatility Comparison

Baird Aggregate Bond Fund (BAGSX) has a higher volatility of 1.29% compared to Baird Short-Term Municipal Bond Fund (BTMSX) at 0.36%. This indicates that BAGSX's price experiences larger fluctuations and is considered to be riskier than BTMSX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	BAGSX	BTMSX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.29%	0.36%	+0.93%
Volatility (6M) Calculated over the trailing 6-month period	2.68%	0.84%	+1.84%
Volatility (1Y) Calculated over the trailing 1-year period	3.78%	1.10%	+2.68%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.93%	1.72%	+4.21%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.89%	1.84%	+3.05%

BAGSX vs. BTMSX - Expense Ratio Comparison

Both BAGSX and BTMSX have an expense ratio of 0.55%.

Dividends

BAGSX vs. BTMSX - Dividend Comparison

BAGSX's dividend yield for the trailing twelve months is around 3.80%, more than BTMSX's 3.07% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BAGSX Baird Aggregate Bond Fund	3.80%	3.69%	3.62%	3.10%	2.33%	1.68%	3.02%	2.41%	2.53%	2.21%	1.96%	2.14%
BTMSX Baird Short-Term Municipal Bond Fund	3.07%	3.05%	2.93%	2.48%	1.36%	0.88%	1.30%	1.66%	1.53%	1.43%	1.17%	0.00%

Frequently Asked Questions

Can I hold both BAGSX and BTMSX in my portfolio?

BAGSX and BTMSX have a correlation of 0.41, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, BAGSX or BTMSX?

BAGSX has higher volatility (1.29%) compared to BTMSX (0.36%). In terms of maximum drawdown, BAGSX dropped -18.97% vs BTMSX's -6.51%.

Which has better risk-adjusted returns?

BTMSX currently has the higher Sharpe Ratio (3.69 vs 1.41), 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.