CGSM vs. TAXI

Last updated Jun 5, 2026

CGSM (Capital Group Short Duration Municipal Income ETF) and TAXI (Northern Trust Intermediate Tax-Exempt Bond ETF) are both Municipal Bonds funds. CGSM is actively managed, while TAXI is passively managed. A 0.53 correlation means they provide meaningful diversification when combined. CGSM charges 0.25%/yr vs 0.05%/yr for TAXI.

Performance

CGSM vs. TAXI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Capital Group Short Duration Municipal Income ETF (CGSM) and Northern Trust Intermediate Tax-Exempt Bond ETF (TAXI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, CGSM achieves a 1.37% return, which is significantly higher than TAXI's 1.00% return.

CGSM

• 1D: 0.08%
• 1M: 0.46%
• YTD: 1.37%
• 6M: 1.64%
• 1Y: 4.67%
• 3Y*: —
• 5Y*: —
• 10Y*: —

TAXI

• 1D: 0.06%
• 1M: 0.52%
• YTD: 1.00%
• 6M: 1.53%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

CGSM vs. TAXI - Yearly Performance Comparison

	2026 (YTD)	2025
CGSM Capital Group Short Duration Municipal Income ETF	1.37%	1.67%
TAXI Northern Trust Intermediate Tax-Exempt Bond ETF	1.00%	3.35%

Correlation

The correlation between CGSM and TAXI is 0.53, 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 Aug 20, 2025	0.53

Return for Risk

CGSM vs. TAXI — Risk / Return Rank

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

CGSM

CGSM Risk / Return Rank: 87
CGSM Sharpe Ratio Rank: 94
CGSM Sortino Ratio Rank: 96
CGSM Omega Ratio Rank: 96
CGSM Calmar Ratio Rank: 79
CGSM Martin Ratio Rank: 71

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.

CGSM vs. TAXI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Capital Group Short Duration Municipal Income ETF (CGSM) and Northern Trust Intermediate Tax-Exempt Bond ETF (TAXI). 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.

	CGSM	TAXI	Difference
Sharpe ratio: Return per unit of total volatility	3.52	—	—
Sortino ratio: Return per unit of downside risk	5.44	—	—
Omega ratio: Gain probability vs. loss probability	1.82	—	—
Calmar ratio: Return relative to maximum drawdown	3.98	—	—
Martin ratio: Return relative to average drawdown	13.02	—	—
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

	CGSM	TAXI	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.52	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	2.89	2.95	-0.07

Drawdowns

CGSM vs. TAXI - Drawdown Comparison

The maximum CGSM drawdown since its inception was -1.42%, smaller than the maximum TAXI drawdown of -2.23%. Use the drawdown chart below to compare losses from any high point for CGSM and TAXI.

Drawdown Indicators

	CGSM	TAXI	Difference
Max Drawdown Largest peak-to-trough decline	-1.42%	-2.23%	+0.81%
Max Drawdown (1Y) Largest decline over 1 year	-1.18%	—	—
Current Drawdown Current decline from peak	-0.14%	-0.74%	+0.60%
Average Drawdown Average peak-to-trough decline	-0.24%	-0.46%	+0.22%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.36%	—	—

Volatility

Volatility by Period

	CGSM	TAXI	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.43%	—	—
Volatility (6M) Calculated over the trailing 6-month period	0.98%	—	—
Volatility (1Y) Calculated over the trailing 1-year period	1.33%	1.90%	-0.57%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.79%	1.90%	-0.11%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.79%	1.90%	-0.11%

CGSM vs. TAXI - Expense Ratio Comparison

CGSM has a 0.25% expense ratio, which is higher than TAXI'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

CGSM vs. TAXI - Dividend Comparison

CGSM's dividend yield for the trailing twelve months is around 2.99%, more than TAXI's 2.00% yield.

Position	TTM	2025	2024	2023
CGSM Capital Group Short Duration Municipal Income ETF	2.99%	3.05%	3.11%	0.84%
TAXI Northern Trust Intermediate Tax-Exempt Bond ETF	2.00%	0.85%	0.00%	0.00%

Frequently Asked Questions

Can I hold both CGSM and TAXI in my portfolio?

CGSM and TAXI have a correlation of 0.53, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, CGSM or TAXI?

On fees, TAXI 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, CGSM or TAXI?

TAXI is cheaper with a 0.05% expense ratio, compared with 0.25% for CGSM.

Which ETF pays a higher dividend yield, CGSM or TAXI?

CGSM has the higher dividend yield at 2.99%, compared with 2.00% for TAXI.

What is the main difference between CGSM and TAXI?

They also come from different issuers: Capital Group and Northern Trust. Their fees differ too: 0.25% for CGSM and 0.05% for TAXI.