BUFI vs. TAFM

Last updated Aug 1, 2026

BUFI (AB International Buffer ETF) and TAFM (AB Tax-Aware Intermediate Municipal ETF) are both exchange-traded funds - BUFI is a Defined Outcome fund actively managed by AllianceBernstein, while TAFM is a Municipal Bonds fund actively managed by AllianceBernstein. Both are actively managed. Over the past year, BUFI returned 14.79% vs 5.14% for TAFM. Their 0.23 correlation means their historical movements had little consistent relationship. BUFI charges 0.69%/yr vs 0.28%/yr for TAFM.

Performance

BUFI vs. TAFM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in AB International Buffer ETF (BUFI) and AB Tax-Aware Intermediate Municipal ETF (TAFM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, BUFI achieves a 6.77% return, which is significantly higher than TAFM's 0.84% return.

BUFI

• 1D: -0.60%
• 1M: 0.60%
• 6M: 4.45%
• YTD: 6.77%
• 1Y: 14.79%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 13.44%

TAFM

• 1D: -0.04%
• 1M: -1.60%
• 6M: 0.02%
• YTD: 0.84%
• 1Y: 5.14%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 3.47%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
BUFI AB International Buffer ETF	$181.70K	$602.68K	$512.75K
TAFM AB Tax-Aware Intermediate Municipal ETF	$4.72M	$4.38M	$5.17M

BUFI vs. TAFM - Yearly Performance Comparison

	2026 (YTD)	2025	2024
BUFI AB International Buffer ETF	6.77%	16.50%	-1.18%
TAFM AB Tax-Aware Intermediate Municipal ETF	0.84%	4.21%	-1.61%

Correlation

The correlation between BUFI and TAFM is 0.31, which is low. Their historical price movements had little consistent relationship.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.31
Correlation (All Time) Calculated using the full available price history since Dec 10, 2024	0.23

Return for Risk

BUFI vs. TAFM — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

BUFI

BUFI Risk / Return Rank: 76
BUFI Sharpe Ratio Rank: 72
BUFI Sortino Ratio Rank: 76
BUFI Omega Ratio Rank: 76
BUFI Calmar Ratio Rank: 74
BUFI Martin Ratio Rank: 80

TAFM

TAFM Risk / Return Rank: 73
TAFM Sharpe Ratio Rank: 80
TAFM Sortino Ratio Rank: 80
TAFM Omega Ratio Rank: 84
TAFM Calmar Ratio Rank: 59
TAFM Martin Ratio Rank: 60

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

BUFI vs. TAFM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for AB International Buffer ETF (BUFI) and AB Tax-Aware Intermediate Municipal ETF (TAFM). 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.

	BUFI	TAFM	Difference
Sharpe ratio: Return per unit of total volatility	1.64	1.84	-0.20
Sortino ratio: Return per unit of downside risk	2.46	2.60	-0.14
Omega ratio: Gain probability vs. loss probability	1.32	1.36	-0.04
Calmar ratio: Return relative to maximum drawdown	2.61	2.11	+0.50
Martin ratio: Return relative to average drawdown	10.48	7.17	+3.31

BUFI vs. TAFM - Sharpe Ratio Comparison

The current BUFI Sharpe Ratio is 1.64, which is comparable to the TAFM Sharpe Ratio of 1.84. The chart below compares the historical Sharpe Ratios of BUFI and TAFM, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

BUFI vs. TAFM - Drawdown Comparison

The maximum BUFI drawdown since its inception was -7.43%, which is greater than TAFM's maximum drawdown of -4.74%. Use the drawdown chart below to compare losses from any high point for BUFI and TAFM.

Drawdown Indicators

	BUFI	TAFM	Difference
Max Drawdown Largest peak-to-trough decline	-7.43%	-4.74%	-2.69%
Max Drawdown (1Y) Largest decline over 1 year	-5.69%	-2.69%	-3.00%
Current Drawdown Current decline from peak	-0.60%	-1.70%	+1.10%
Average Drawdown Average peak-to-trough decline	-0.84%	-0.92%	+0.08%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.41%	0.79%	+0.62%

Volatility

BUFI vs. TAFM - Volatility Comparison

AB International Buffer ETF (BUFI) has a higher volatility of 3.43% compared to AB Tax-Aware Intermediate Municipal ETF (TAFM) at 0.86%. This indicates that BUFI's price experiences larger fluctuations and is considered to be riskier than TAFM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	BUFI	TAFM	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.43%	0.86%	+2.57%
Volatility (6M) Calculated over the trailing 6-month period	7.96%	2.20%	+5.76%
Volatility (1Y) Calculated over the trailing 1-year period	9.04%	3.09%	+5.95%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	9.28%	4.84%	+4.44%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	9.28%	4.84%	+4.44%

BUFI vs. TAFM - Expense Ratio Comparison

BUFI has a 0.69% expense ratio, which is higher than TAFM's 0.28% expense ratio.

Dividends

BUFI vs. TAFM - Dividend Comparison

BUFI has not paid dividends to shareholders, while TAFM's dividend yield for the trailing twelve months is around 3.68%.

Position	TTM	2025	2024	2023
BUFI AB International Buffer ETF	0.00%	0.00%	0.00%	0.00%
TAFM AB Tax-Aware Intermediate Municipal ETF	3.37%	3.51%	3.35%	0.18%

Frequently Asked Questions

Can I hold both BUFI and TAFM in my portfolio?

BUFI and TAFM have a correlation of 0.31, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, BUFI or TAFM?

BUFI has higher volatility (3.43%) compared to TAFM (0.86%). In terms of maximum drawdown, BUFI dropped -7.43% vs TAFM's -4.74%.

Which ETF is better, BUFI or TAFM?

On 1-year performance, BUFI leads with 14.79% vs 5.14% for TAFM. On fees, TAFM is cheaper at 0.28% per year. On volatility, TAFM has been the lower-risk option at 0.86%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, BUFI or TAFM?

Over the 1-year period, BUFI has performed better with a 14.79% return vs 5.14%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, BUFI or TAFM?

TAFM is cheaper with a 0.28% expense ratio, compared with 0.69% for BUFI.

Which ETF pays a higher dividend yield, BUFI or TAFM?

TAFM has the higher dividend yield at 3.37%, compared with 0.00% for BUFI.

What is the main difference between BUFI and TAFM?

BUFI is categorized as Defined Outcome, while TAFM is Municipal Bonds. Their fees differ too: 0.69% for BUFI and 0.28% for TAFM.

Which has better risk-adjusted returns?

TAFM currently has the higher Sharpe Ratio (1.84 vs 1.64), 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.