CGSD vs. TAXS

Last updated Jun 4, 2026

CGSD (Capital Group Short Duration Income ETF) and TAXS (Northern Trust Short-Term Tax-Exempt Bond ETF) are both exchange-traded funds - CGSD is a Short-Term Bond fund actively managed by Capital Group, while TAXS is a Municipal Bonds fund tracking the ICE Short Term Focused Municipal Bond Index. CGSD is actively managed, while TAXS is passively managed. At a 0.48 correlation, their price movements are largely independent. CGSD charges 0.25%/yr vs 0.05%/yr for TAXS.

Performance

CGSD vs. TAXS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Capital Group Short Duration Income ETF (CGSD) 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, CGSD achieves a 0.70% return, which is significantly lower than TAXS's 0.93% return.

CGSD

• 1D: -0.10%
• 1M: 0.14%
• YTD: 0.70%
• 6M: 1.09%
• 1Y: 4.30%
• 3Y*: 5.21%
• 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)

CGSD vs. TAXS - Yearly Performance Comparison

	2026 (YTD)	2025
CGSD Capital Group Short Duration Income ETF	0.70%	1.96%
TAXS Northern Trust Short-Term Tax-Exempt Bond ETF	0.93%	1.22%

Correlation

The correlation between CGSD and TAXS is 0.48, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (All Time) Calculated using the full available price history since Aug 20, 2025	0.48

Return for Risk

CGSD vs. TAXS — Risk / Return Rank

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

CGSD

CGSD Risk / Return Rank: 87
CGSD Sharpe Ratio Rank: 87
CGSD Sortino Ratio Rank: 93
CGSD Omega Ratio Rank: 91
CGSD Calmar Ratio Rank: 77
CGSD Martin Ratio Rank: 86

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.

CGSD vs. TAXS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Capital Group Short Duration Income ETF (CGSD) 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.

	CGSD	TAXS	Difference
Sharpe ratio: Return per unit of total volatility	2.94	—	—
Sortino ratio: Return per unit of downside risk	4.65	—	—
Omega ratio: Gain probability vs. loss probability	1.61	—	—
Calmar ratio: Return relative to maximum drawdown	3.88	—	—
Martin ratio: Return relative to average drawdown	18.36	—	—
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

Sharpe Ratios by Period

	CGSD	TAXS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.94	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	2.41	2.78	-0.37

Drawdowns

CGSD vs. TAXS - Drawdown Comparison

The maximum CGSD drawdown since its inception was -1.75%, which is greater than TAXS's maximum drawdown of -0.84%. Use the drawdown chart below to compare losses from any high point for CGSD and TAXS.

Drawdown Indicators

	CGSD	TAXS	Difference
Max Drawdown Largest peak-to-trough decline	-1.75%	-0.84%	-0.91%
Max Drawdown (1Y) Largest decline over 1 year	-1.11%	—	—
Max Drawdown (3Y) Largest decline over 3 years	-1.11%	—	—
Current Drawdown Current decline from peak	-0.14%	-0.09%	-0.05%
Average Drawdown Average peak-to-trough decline	-0.28%	-0.24%	-0.04%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.23%	—	—

Volatility

Volatility by Period

	CGSD	TAXS	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.39%	—	—
Volatility (6M) Calculated over the trailing 6-month period	1.01%	—	—
Volatility (1Y) Calculated over the trailing 1-year period	1.47%	1.00%	+0.47%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.16%	1.00%	+1.16%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.16%	1.00%	+1.16%

CGSD vs. TAXS - Expense Ratio Comparison

CGSD has a 0.25% 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

CGSD vs. TAXS - Dividend Comparison

CGSD's dividend yield for the trailing twelve months is around 4.46%, more than TAXS's 1.83% yield.

Position	TTM	2025	2024	2023	2022
CGSD Capital Group Short Duration Income ETF	4.46%	4.48%	4.57%	4.43%	0.64%
TAXS Northern Trust Short-Term Tax-Exempt Bond ETF	1.83%	0.74%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both CGSD and TAXS in my portfolio?

CGSD and TAXS have a correlation of 0.48, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, CGSD 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, CGSD or TAXS?

TAXS is cheaper with a 0.05% expense ratio, compared with 0.25% for CGSD.

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

CGSD has the higher dividend yield at 4.46%, compared with 1.83% for TAXS.

What is the main difference between CGSD and TAXS?

CGSD is categorized as Short-Term Bond, while TAXS is Municipal Bonds. They also come from different issuers: Capital Group and Northern Trust. Their fees differ too: 0.25% for CGSD and 0.05% for TAXS.