DFNM vs. TAXT

Last updated Aug 2, 2026

DFNM (Dimensional National Municipal Bond ETF) and TAXT (Northern Trust Tax-Exempt Bond ETF) are both Municipal Bonds funds. DFNM is actively managed, while TAXT is passively managed. Their 0.71 correlation means they have sometimes moved together and sometimes differently. DFNM charges 0.17%/yr vs 0.05%/yr for TAXT.

Performance

DFNM vs. TAXT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Dimensional National Municipal Bond ETF (DFNM) and Northern Trust Tax-Exempt Bond ETF (TAXT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, DFNM achieves a 0.45% return, which is significantly higher than TAXT's 0.32% return.

DFNM

• 1D: -0.04%
• 1M: -1.20%
• 6M: -0.36%
• YTD: 0.45%
• 1Y: 3.46%
• 3Y*: 2.90%
• 5Y*: —
• 10Y*: —
• ALL TIME*: 1.20%

TAXT

• 1D: -0.08%
• 1M: -1.57%
• 6M: -0.46%
• YTD: 0.32%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: —

*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)
DFNM Dimensional National Municipal Bond ETF	$10.08M	$8.87M	$8.49M
TAXT Northern Trust Tax-Exempt Bond ETF	$101.60K	$96.04K	$143.38K

DFNM vs. TAXT - Yearly Performance Comparison

	2026 (YTD)	2025
DFNM Dimensional National Municipal Bond ETF	0.45%	2.99%
TAXT Northern Trust Tax-Exempt Bond ETF	0.32%	3.91%

Correlation

The correlation between DFNM and TAXT is 0.71, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (All Time) Calculated using the full available price history since Aug 19, 2025	0.71

Return for Risk

DFNM vs. TAXT — Risk / Return Rank

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

DFNM

DFNM Risk / Return Rank: 77
DFNM Sharpe Ratio Rank: 88
DFNM Sortino Ratio Rank: 87
DFNM Omega Ratio Rank: 92
DFNM Calmar Ratio Rank: 58
DFNM Martin Ratio Rank: 57

TAXT

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

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.

DFNM vs. TAXT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Dimensional National Municipal Bond ETF (DFNM) and Northern Trust Tax-Exempt Bond ETF (TAXT). 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.

	DFNM	TAXT	Difference
Sharpe ratio: Return per unit of total volatility	2.12	—	—
Sortino ratio: Return per unit of downside risk	2.95	—	—
Omega ratio: Gain probability vs. loss probability	1.46	—	—
Calmar ratio: Return relative to maximum drawdown	2.07	—	—
Martin ratio: Return relative to average drawdown	6.89	—	—

Drawdowns

DFNM vs. TAXT - Drawdown Comparison

The maximum DFNM drawdown since its inception was -6.99%, which is greater than TAXT's maximum drawdown of -2.49%. Use the drawdown chart below to compare losses from any high point for DFNM and TAXT.

Drawdown Indicators

	DFNM	TAXT	Difference
Max Drawdown Largest peak-to-trough decline	-6.99%	-2.49%	-4.50%
Max Drawdown (1Y) Largest decline over 1 year	-1.84%	—	—
Max Drawdown (3Y) Largest decline over 3 years	-2.79%	—	—
Current Drawdown Current decline from peak	-1.20%	-1.72%	+0.52%
Average Drawdown Average peak-to-trough decline	-1.91%	-0.52%	-1.39%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.55%	—	—

Volatility

Volatility by Period

	DFNM	TAXT	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.67%	—	—
Volatility (6M) Calculated over the trailing 6-month period	1.43%	—	—
Volatility (1Y) Calculated over the trailing 1-year period	1.80%	2.57%	-0.77%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.52%	2.57%	-0.05%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.52%	2.57%	-0.05%

DFNM vs. TAXT - Expense Ratio Comparison

DFNM has a 0.17% expense ratio, which is higher than TAXT'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

DFNM vs. TAXT - Dividend Comparison

DFNM's dividend yield for the trailing twelve months is around 2.97%, more than TAXT's 2.86% yield.

Position	TTM	2025	2024	2023	2022	2021
DFNM Dimensional National Municipal Bond ETF	2.97%	2.94%	2.74%	2.39%	1.16%	0.05%
TAXT Northern Trust Tax-Exempt Bond ETF	2.86%	1.23%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both DFNM and TAXT in my portfolio?

DFNM and TAXT have a correlation of 0.71, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, DFNM or TAXT?

On fees, TAXT 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, DFNM or TAXT?

TAXT is cheaper with a 0.05% expense ratio, compared with 0.17% for DFNM.

Which ETF pays a higher dividend yield, DFNM or TAXT?

DFNM has the higher dividend yield at 2.97%, compared with 2.86% for TAXT.

What is the main difference between DFNM and TAXT?

They also come from different issuers: Dimensional and Northern Trust. Their fees differ too: 0.17% for DFNM and 0.05% for TAXT.