BTMSX vs. BAGSX

Last updated Jun 4, 2026

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

Performance

BTMSX vs. BAGSX - Performance Comparison

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

Returns By Period

In the year-to-date period, BTMSX achieves a 0.97% return, which is significantly higher than BAGSX's 0.30% return. Both investments have delivered pretty close results over the past 10 years, with BTMSX having a 1.83% annualized return and BAGSX not far behind at 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%

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%

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

BTMSX vs. BAGSX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
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%
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%

Correlation

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

Return for Risk

BTMSX vs. BAGSX — Risk / Return Rank

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

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

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

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.

BTMSX vs. BAGSX - Risk-Adjusted Trends Comparison

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

	BTMSX	BAGSX	Difference
Sharpe ratio: Return per unit of total volatility	3.69	1.41	+2.29
Sortino ratio: Return per unit of downside risk	6.00	2.09	+3.91
Omega ratio: Gain probability vs. loss probability	2.26	1.26	+1.01
Calmar ratio: Return relative to maximum drawdown	3.68	1.87	+1.82
Martin ratio: Return relative to average drawdown	12.35	5.53	+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.

BTMSX vs. BAGSX - Sharpe Ratio Comparison

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

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

Drawdowns

BTMSX vs. BAGSX - Drawdown Comparison

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

Drawdown Indicators

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

Volatility

BTMSX vs. BAGSX - Volatility Comparison

The current volatility for Baird Short-Term Municipal Bond Fund (BTMSX) is 0.36%, while Baird Aggregate Bond Fund (BAGSX) has a volatility of 1.29%. This indicates that BTMSX experiences smaller price fluctuations and is considered to be less risky than BAGSX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

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

BTMSX vs. BAGSX - Expense Ratio Comparison

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

Dividends

BTMSX vs. BAGSX - Dividend Comparison

BTMSX's dividend yield for the trailing twelve months is around 3.07%, less than BAGSX's 3.80% 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 BTMSX and BAGSX in my portfolio?

BTMSX and BAGSX 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, BTMSX or BAGSX?

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

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.