BSMZ vs. TAXS

Last updated Jun 4, 2026

BSMZ (Invesco BulletShares 2035 Municipal Bond ETF) and TAXS (Northern Trust Short-Term Tax-Exempt Bond ETF) are both Municipal Bonds funds - BSMZ tracks the Invesco BulletShares USD Municipal Bond 2035 Index while TAXS tracks the ICE Short Term Focused Municipal Bond Index. Both are passively managed. A 0.61 correlation means they provide meaningful diversification when combined. BSMZ charges 0.18%/yr vs 0.05%/yr for TAXS.

Performance

BSMZ vs. TAXS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco BulletShares 2035 Municipal Bond ETF (BSMZ) and Northern Trust Short-Term Tax-Exempt Bond ETF (TAXS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, BSMZ achieves a 1.78% return, which is significantly higher than TAXS's 0.93% return.

BSMZ

• 1D: 0.20%
• 1M: 0.85%
• YTD: 1.78%
• 6M: 2.27%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

TAXS

• 1D: 0.06%
• 1M: 0.38%
• YTD: 0.93%
• 6M: 1.33%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

BSMZ vs. TAXS - Yearly Performance Comparison

	2026 (YTD)	2025
BSMZ Invesco BulletShares 2035 Municipal Bond ETF	1.78%	1.82%
TAXS Northern Trust Short-Term Tax-Exempt Bond ETF	0.93%	0.53%

Correlation

The correlation between BSMZ and TAXS is 0.61, 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 Sep 18, 2025	0.61

Return for Risk

BSMZ vs. TAXS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco BulletShares 2035 Municipal Bond ETF (BSMZ) and Northern Trust Short-Term Tax-Exempt Bond ETF (TAXS). 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.

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

Sharpe Ratios by Period

	BSMZ	TAXS	Difference
Sharpe Ratio (All Time) Calculated using the full available price history	1.38	2.78	-1.40

Drawdowns

BSMZ vs. TAXS - Drawdown Comparison

The maximum BSMZ drawdown since its inception was -3.26%, which is greater than TAXS's maximum drawdown of -0.84%. Use the drawdown chart below to compare losses from any high point for BSMZ and TAXS.

Drawdown Indicators

	BSMZ	TAXS	Difference
Max Drawdown Largest peak-to-trough decline	-3.26%	-0.84%	-2.42%
Current Drawdown Current decline from peak	-0.39%	-0.09%	-0.30%
Average Drawdown Average peak-to-trough decline	-0.70%	-0.24%	-0.46%

Volatility

Volatility by Period

	BSMZ	TAXS	Difference
Volatility (1Y) Calculated over the trailing 1-year period	3.76%	1.00%	+2.76%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.76%	1.00%	+2.76%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.76%	1.00%	+2.76%

BSMZ vs. TAXS - Expense Ratio Comparison

BSMZ has a 0.18% expense ratio, which is higher than TAXS's 0.05% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

BSMZ vs. TAXS - Dividend Comparison

BSMZ's dividend yield for the trailing twelve months is around 2.02%, more than TAXS's 1.83% yield.

Position	TTM	2025
BSMZ Invesco BulletShares 2035 Municipal Bond ETF	2.02%	0.68%
TAXS Northern Trust Short-Term Tax-Exempt Bond ETF	1.83%	0.74%

Frequently Asked Questions

Can I hold both BSMZ and TAXS in my portfolio?

BSMZ and TAXS have a correlation of 0.61, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, BSMZ or TAXS?

On fees, TAXS is cheaper at 0.05% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, BSMZ or TAXS?

TAXS is cheaper with a 0.05% expense ratio, compared with 0.18% for BSMZ.

Which ETF pays a higher dividend yield, BSMZ or TAXS?

BSMZ has the higher dividend yield at 2.02%, compared with 1.83% for TAXS.

What is the main difference between BSMZ and TAXS?

BSMZ tracks Invesco BulletShares USD Municipal Bond 2035 Index, while TAXS tracks ICE Short Term Focused Municipal Bond Index. They also come from different issuers: Invesco and Northern Trust. Their fees differ too: 0.18% for BSMZ and 0.05% for TAXS.